Sports Direct SWOT Analysis

Set up in 1982 as a single outlet, today it is UK’s largest sports retailer in terms of revenue. Its business is spread across five business segments- UK sports retail, European Sports Retail, Rest of World Retail, Premium Lifestyle and Wholesale & Licensing (formerly Brands). Sports Direct aims to invest in its multi-channel operations, its employees and third party brands to provide quality products to its customers. Let us start the SWOT Analysis of Sports Direct below.

Sports Direct Strengths

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

Above are the strengths in the SWOT Analysis of Sports Direct. The strengths of Sports Direct looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Sports Direct Weaknesses

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

These were the weaknesses in the Sports Direct SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Sports Direct Opportunities

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

Above we covered the opportunities in Sports Direct SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Sports Direct Threats

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.

The threats in the SWOT Analysis of Sports Direct are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Sports Direct SWOT analysis.

About Sports Direct

The table below gives the brand overview along with its target market, segmentation, positioning & USP

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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