Strength
• Knowledge
The members Colin and Ed had experience on sports. They have been athletes and working on
similar field for long time. So, they have good knowledge through education and experience.
• Continuous effort
Colin never lost his hope to run his business. He kept confidence and worked hard to stand out
for business success. That was the asset for the Athletic Warehouse. Management risked as well
as worked hard by understanding requirement of market. Colin was the one who even got
• Synergy Effect
The combined effort has worked for business success. Money invested by Ed from retirement
fund and Colin constant effort to improvise the business as well as collecting information of
2. Weakness
Both Colin and Ed lacked accounting knowledge which seems to be problematic from beginning
to end. It is the main weakness of the business. And it does not seem that they acquired those
knowledges again. So, they have been getting problems with funding, cash flows and other
aspects of accounting.
Colin is risk taker while Ed was not. Ed was afraid of taking risk as it was his retirement fund.
Colin thinks that Their market is looking for quality sports product which Ed does not
completely believe.
• Lack of money
For any business, most important is money to setup the company. They also need extra fund for
uncertain situation. Though they had knowledge of sportswear, but they did not have enough
3. Opportunity
• Location
The location for business was good. It was busy street as well as there were different kinds of
market like restaurant and malls which means people will be coming to that place for shopping
and they can attract their customers when they come to visit their regular places.
• Limited competition
Another good point was that there is limited competition. There were not many sports company
that provides quality products. So, they have good opportunity to use unique features to attract
customers. They had good point over other business and can define their own image as quality
over price.
There was competition but another opportunity for Athlete’s Warehouse was lack of skill
salesperson with other competitor who can individually take of customers based on their
requirement. So, they can take advantage of adding this feature and create a different identity in
4. Threats
• Competition
Though not many competitions but still there is competition. Another problem with that
competition is competitors have been there for long period and has been providing low cost
product. Customers will not be able to trust new company that easily. They have to promote and
• High Cost
Since, the market is in center area, it’s going to be costly and crowded. Promotion might get lost
and needs to something that attracts them. It has to be eye catching. First impression must be
good in order to capture the market where people are buying from old business from long time.
• Uncertain Customers
Since, business has unique strategy to focus on quality, company is uncertain of customers. They
are not sure if customers are brand loyal or switcher. If switcher then it can become opportunity
but if brand loyal then it’s risky and needs huge money for brand switching.
References:
Carpenter, M. and Bauer, T. (2012). Management Principles. 1st ed. Creative Commons.