Sports Direct SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of Sports Direct analyses the brand by its strengths, weaknesses, opportunities & threats. In Sports Direct SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Sports Direct to benchmark its business & performance as compared to the competitors. Sports Direct is one of the leading brands in the lifestyle and retail sector.

The article below lists the Sports Direct SWOT (Strengths, Weaknesses, Opportunities, Threats), top Sports Direct competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

About Sports Direct

Sports Direct Overview
Parent Company

Mike Ashley Sports

Category

Retail

Sector

Lifestyle and Retail

Tagline/ Slogan

24HR Delivery

USP

UK’s number one sports retailer

Sports Direct STP
Segmentation

Sports goods and accessories

Target Market

Youth, Sports and fitness, above average

Positioning

Customers get more for their money through being fit, socialize or simply enjoy the products

SWOT Analysis of Sports Direct

For Sports Direct, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Sports Direct SWOT Analysis:

Sports Direct Strengths

The strengths of Sports Direct looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Sports Direct :

1. UK’s number one sports retailer with over 470 stores.
2. Trusted brand as it had been for over decades
3. Tie-up with large number of famous sports brands like Nike, Adidas, Reebok, etc
4. Long list of renowned subsidiaries like Slazenger, Lilywhites, USC, etc

5. Savvy price strategy that hits the mark with consumer, thus increasing the credibility of the retailer

6. Low staff turnover: Company pays high bonuses to floor staff and managers

7. Strong online presence with the tagline 24HR delivery, this gives access to customers to get the products delivered to their home

Sports Direct Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Sports Direct SWOT Analysis:

1. Sports industry is a highly competitive market which result in slow growth in market share
2. Company operates under low margins which creates doubt about future profitability


Sports Direct Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Sports Direct SWOT Analysis:

1. With the economic problems in EuroZone rumbling on, company has exciting opportunity to establish itself in Eastern and Western Europe
2. Company follows aggressive strategy in acquiring brands across Europe which gives it opportunity to reach customers across segments


Sports Direct Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Sports Direct are as mentioned:

1. Rising cost of raw material can affect revenue vastly, since the firm operates at low profit margin
2. Tax changing policy due to Eurozone crisis can adversely affects the functioning
3. Development of new digital technology can cause strong technological problems.

Sports Direct Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Sports Direct:

1. Foot Locker, Inc.
2. JJB Sports plc
3. Snow & Rock Sports Ltd

 

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Sports Direct. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.

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