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Jake's Sport Emporium Case Study

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Jake’s Sport Emporium is the third largest sporting goods retailer worldwide and the 2nd largest sports specialty retailer in the U.S. which is currently operating as click and mortar. Due to heavy global competition Jake’s planning to extend their stores in Maricopa County, Arizona for increased revenues and enhance long term profitability. This project considers three additional new competing locations in Maricopa County, Arizona. This report also presents accessible vacant areas, for Jake’s to establish their new stores. The new stores are evaluated with key mapping features (pads), cex Index Average, NAICS Leakage, EBT, Payback and Household, where the weighted average of these parameters chooses the capability of every area. The three …show more content…

From a business stance, a shorter payback period is better as less time is required to get even with the starting investment. Along these lines, the parameter depends on the Investment cost and EBT (See Appendix A for formulae). Households: This parameter is basically the measure of the quantity of families living in the primary and secondary regions. The report extracted for these field calculations is Executive Summary-Households report where we look up the 2014 Total Households data field. Like other parameters, this calculates average of for the values extracted from ring and drive time donuts from BAO report. With above data available, we calculated the scores (See Appendix A for formulae). Table 1 shows the three new locations, which are selected for establishing the new stores. The details shown in the table are the Address of location, Geographical space of that location in acres, Total Price and Building form …show more content…

Location Cex Index Avg NAICS Leakage EBT Payback HH 1 81.93 -12,341,970 1,655,327 4.35 53,417 2 113.18 -6,122,858 2,930,786 3.20 70,608 3 124.74 -26,710,503 725,008 12.57 17,066 Table 2: Location score Matrix. With the data which is calculated in table 2, we calculated the weighted individual scores. As shown in Table 2. All the parameters are made as weighted score for individual parameters as percentages. Relative score method is used for their calculations. A relative index for each parameter was determined by summing the values of each individual location, dividing it by the total, and converting it into a scale of 100%. Location cex Index Avg NAICS Leakage EBT Payback HH Score 1 25.62% 27.32% 31.17% -21.63% 37.86% 100.34% 2 35.39% 13.55% 55.18% -15.91% 50.04% 138.26% 3 39.00% 59.13% 13.65% -62.47% 12.10% 61.41% Total 100.00% 100.00% 100.00% -100.00% 100.00% 300.00% Table 3: Location score matrix with weighted score After calculating the weighted individual scores, Individual ranking score is calculated as shown in Table 3. Location 2 has a weighted score of 1.38, indicating that it is the most potential location for a new big store among the three available

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