Ed And Colin's Case Study: Grand Falls, Inc

In this case study, brothers Ed and Colin Power are discussing the possibility of opening an athletic clothing and shoe business. The brothers have previously owned and operated a similar store that ended up closing, as well as a fitness center that also sold some clothing and shoes. Colin has lost his job at the YMCA and is looking for an opportunity to open another store and work for himself rather than be employed by someone else. Ed is interested in this venture, but is also concerned that he will be the primary investor, risking his retirement savings. This assignment uses a SWOT analysis to determine the viability of this project.

Strengths:

1. Able to offer expert advice – Both Ed and Colin are educated and experienced in sports, with Colin holding a PhD in physical education and Ed having played professional hockey. They bring with them a significant amount of knowledge in the
Grand Falls is a primary retail center – The town of Grand Falls is a primary center for retail trading. They offer services to at least 50,000 people, making their pool of possible customers very large. This means their profit margin would increase.

2. Large customer base – Due to the larger possible customer base, and specifically the high percentage of youth aged 15-34, their target demographic, Colin estimated 18,000 possible customers in the area. Depending on where they decided to open their new store, he estimated around 2500 or 3000 of those people had a high potential to become customers.

3. Strong economic market – The economic market in Grand Falls was doing very well. The inflation rate was down to 2.9%, and the median family income was $24,432. That was the fifth highest median income in the province. The main employer, the Abitibi Price Paper Mill was doing well and not expected to offer any lay-offs. All these factors are indicators that the market is favourable to opening a new retail business as people will have money to spend.