Dick's Sporting Goods

3320 Words Apr 22nd, 2013 14 Pages
The External Environment
Competition
Sports Authority: First and foremost, a major competitor of Dick’s Sporting Goods is Sports Authority. Sports Authority is an industry leader providing a wide variety of brand-name sporting goods, relatively similar to Dick’s. The store’s headquarters is located in Englewood, Colorado. According to Yahoo Finance, “The company operates over 450 stores in 45 U.S. states very similar to Dick’s 500 stores in 44 U.S. states. As of 2011, employment consisted of 14,250 associates.” Funding Universe described the history of Sports Authority in their article, The Sports Authority, Inc. History. The article projects a timeline about the history of Sports Authority and their relationship with Kmart. In summary
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With both of these instances, Sport’s Authority holds the competitive advantage because its offered the cheaper shoe with more color options for the consumer.
Foot Locker: Second major competitor of Dick’s Sporting Goods is Foot Locker. According to Yahoo Finance, the company is an American sportswear and footwear retailer based in New York, New York and was founded in 1974. The company operates as a retailer of athletic footwear. Foot Locker sells more athletic shoes than any other retailer in the U.S. As of January 28, 2012, it operated 3,369 stores in 23 countries including North America, Europe, Australia, and New Zealand. The company employs 13,080 associates as of 2012. According to Wiki Invest, in 2006, Foot Locker’s company-wide operating margin dropped; so the company decided to close numerous stores in order to improve profitability. The company developed a strategy to open new stores, relocate existing stores, and close down the weak stores. The strategy continued throughout 2007 and 2008. However, Foot Locker experienced another decrease in 2008, generating only $5.24 billion in total revenue, which was a 3.7% decrease from their 2007 sales. Struggles continued in 2009 as retail revenue dropped to $4.85 billion, however, its net income increased compared to the $-80 million the previous year. Finally, Foot Locker experienced a strong third quarter due to a combination of strong
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