Colin's Warehouse

Written Assignment Unit 5 Case Study: Athlete Warehouse Department of Business Administration University of the People BUS 1101: Principles of Business Management Professor Celeste Frye (Instructor).

The SWOT Analysis of the Athlete Warehouse: Strengths and Established Supplier Contacts: Colin Power's connections initiated while at the University of Ottawa provide Athlete's Warehouse with established supplier contacts. This can lead to favorable terms, a diverse product range, and potential exclusivity agreements, enhancing the store's competitive edge. Specialized Expertise: Colin and Ed are actively involved in athletics and possess specialized knowledge. Athlete's Warehouse can offer expert advice to customers. This expertise can
Weaknesses: Limited Financial Resources: The closure of the Comer Brook store and Colin's termination as the Executive Director of the YMCA indicate financial challenges. This limits the available capital for expansion and may hinder the ability to invest in marketing, renovations, and inventory, impacting the store's growth. Overreliance on Management: The closure of the Comer Brook store and the subsequent closure of The Fitness Factory suggest that the success of Athlete's Warehouse may be heavily reliant on Colin's management. If Colin is unable to commit full-time, as in the case of The Fitness Factory, the store's performance could be compromised. Inadequate Initial Sales Performance: The Comer Brook store's disappointing first-year sales of $35,000 suggest potential issues with location or product line. This historical performance raises concerns about the store's ability to attract customers and generate revenue, particularly if similar issues persist in the new location. Opportunities: Growing Local Economy: The economic growth in Grand Falls and Windsor, coupled with the absence of downtime at the main employer, Abitibi Price Paper, presents an opportunity for increased consumer spending. This economic upturn can positively impact Athlete's Warehouse's sales.
Threats: Intense Local Competition: The presence of three sporting goods stores in Grand Falls and Windsor, along with other stores offering similar products, poses a competitive threat. Athlete Warehouse must differentiate itself effectively to attract and retain customers in a crowded market. Economic Uncertainty: Despite the current economic growth, economic conditions can change. Factors such as a downturn in the paper industry or broader economic uncertainties can impact consumer spending, potentially affecting Athlete's Warehouse's sales and profitability. Supplier Dependence: Athlete's Warehouse's reliance on suppliers, especially those requiring COD for the first order, poses a threat. Any disruptions in the supply chain or unfavorable supplier terms could affect inventory availability, leading to potential stockouts and customer dissatisfaction. Overall Evaluation: Athlete's Warehouse has promising strengths, particularly in specialized expertise and established supplier contacts. However, weaknesses such as financial constraints and overreliance on management require careful consideration. Opportunities in a growing local economy and unmet market needs align with the store's vision, while threats from intense competition and economic uncertainties call for strategic