Foot Locker, Inc

Foot Locker, Inc. 1

Running Head: FOOT LOCKER, INC.

A Strategic Analysis of Foot Locker, Inc.

Richard A. Sweeney

A Senior Thesis submitted in partial fulfillment of the requirements for graduation in the Honors Program Liberty University Spring 2009

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Acceptance of Senior Honors Thesis This Senior Honors Thesis is accepted in partial fulfillment of the requirements for graduation from the Honors Program of Liberty University.

__________________________ Paul E. Young, Ph.D. Thesis Chair

__________________________ Edward M. Moore, Ph.D. Committee Member

__________________________ Kendrick W. Brunson, A.B.D. Committee Member

__________________________ Marilyn L. Gadomski, Ph.D. Assistant Honors Director

__________________________ Date

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Abstract During the past couple of years, Foot Locker, Inc. has underperformed the public’s expectations. This has been evidenced by the rapid slide of its share price. The current economical situation has further weighted down on the company’s ability to provide shareholder value. This paper will describe the problems associated with Foot Locker, Inc.’s underperformance in the marketplace. These problems must be remedied if the company is to earn an attractive rate of return for its investors. Using secondary research, these problem areas will be identified by analyzing the current internal and external situation surrounding Foot Locker, Inc., determining the intensity of Porter’s Five Competitive Forces on industry profitability, looking at the competitive positions of Foot Locker’s major competitors based on price and geographical coverage, identifying the key success factors (KSFs) associated with the industry, analyzing Foot Locker’s current strategy, and conducting a SWOT (Strength, Weakness, Opportunity, Threat) analysis. Finally, the future strategic elements essential to building an attractive and sustainable return on investment (ROI), required by

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