DSG Swot Analysis Essay Example

growth compared to 2010.

Sponsorships and Community Outreach

Dick’s Sporting Goods sponsors various events such as ESPN Kickoff Week, Dick’s Sporting Goods Open, and Dick’s Sporting Goods Marathon. They also sponsor sports teams like the Pittsburgh Penguins, Colorado Avalanche, and the Colorado Rapids ("Dick'S Sporting Goods", n.d.). Additionally, they have a community program where they donate necessary sporting equipment to local youth teams.

Weaknesses

Despite improvements in customer service, inadequate staffing remains a concern at Dick’s. Customers consistently complain about stores being understaffed and difficulties in finding or retaining assistance. In an effort to address budgetary challenges, Dick's tends to reduce payroll which may have negative effects on profitability and customer loyalty leading to greater financial losses.

Logistics

Dick’s Sporting Goods is experiencing decreased profits as a result of the transportation expenses associated with shipping goods nationwide. Although the company has expanded to the West coast, it still operates from distribution centers on the East coast.

Opportunities E-commerce growth

To tackle this problem, Dick’s has teamed up with GSI Commerce in order to establish an online business. This online platform, which is managed by a different company, offers customers a wider selection of products compared to what is available in physical stores.

Dick's Sporting Goods is currently focusing on expanding their e-commerce business in order to increase sales. One advantage of these online sales is that there is no need for customer service, resulting in faster profits. As part of their strategy, they have installed in-store computers for customers who can't find products

in physical stores and now allow returns for e-commerce purchases that are not available in-store ("Dick'S Sporting Goods", n.d.).

To compensate for the decline in business from specialty retailers offering similar products, Dick's Sporting Goods has introduced private label brands, some of which are endorsed by professional athletes.

Currently, approximately 15 percent of the company's total sales come from these sales. The company's objective is to increase this percentage to 20 percent ("Dick'S Sporting Goods Investor Relations", 2011).

Threats

Economic Conditions

The economic recession has led to a decrease in disposable income for families. As a result, more families and schools are seeking affordable used equipment or opting for the cheapest available products. Additionally, the declining economy has resulted in an uptick in shrinkage, necessitating improved inventory control and appropriate staffing.

Moreover, the global crisis has a negative impact on suppliers' access to capital and their ability to maintain inventory, production, and quality. This disruption in the supply chain is causing difficulties for Dick's Sporting Goods ("Dick'S Sporting Goods Investor Relations", 2011).

Competition

Furthermore, consumers are becoming increasingly price-conscious and comparing products at Dick's with those offered by competitors like Sports Authority and Big. Even though these competitors may offer inferior service and merchandising, consumers are willing to overlook these drawbacks for a better price. Therefore, in order to stay competitive in the current market, Dick's must match lower prices.