Athlete's Warehouse SWOT Analysis

Paper Type:  Case study
Pages:  3
Wordcount:  655 Words
Date:  2022-03-19


SWOT Analysis is a tool used for strategic planning and management, and it has two dimensions: internal and external factors. The components of SWOT Analysis are Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal factors, whereas Opportunities and Threats are external factors. The information obtained from SWOT Analysis is critical in "matching the organization's resources and capabilities to the competitive environment in which it operates." (Gurel & Tat,2017). This essay uses SWOT analysis to evaluate Athlete's Warehouse critically.

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Business Strengths

Strengths provide a competitive advantage to a business or a company over its competitors. Athlete's Warehouse had three business strengths, which offered them a gain. Firstly, Collins had established a credit rating with some of the suppliers. Of the sports goods. Having worked with them before, Collins had knowledge of how these suppliers do business. The credit rating would make it easier for Athlete's Warehouse to receive sports merchandise from the suppliers

Secondly, Ed and Colin's business experience in that business offered an advantage in that they were able to provide expert advice to their customers. They gave valuable information to customers who had no or little knowledge about sport goods, especially running shoes. Unlike other sports businesses in Grand Falls, the Athletes' Warehouse had knowledgeable staff who played a critical role in offering expert advice. Thirdly, Athlete's Warehouse had existing inventory worth $12000 and also an old cash register. The current stock was valuable because customers could still buy goods before the business acquired capital to buy the needed inventory.


Weakness refers to the situations in a business or an organization that negatively affect the company among its competitors (Gurel & Tat, 2017). Just like other businesses, the Athlete's Warehouse had weaknesses. First and foremost, the industry lacked adequate initial capital. Lack of capital is a significant disadvantage because it denies the company funds to invest in the goods. Athlete's Warehouse had to rely on credit purchases from suppliers. Secondly, the business sold goods at a higher price compared to its competitors who sold similar goods at an average price. The competitor's low prices would attract customers. Thirdly, the Athlete's Warehouse was not able to market its products more effectively compared to its competitors because of low capital.


Opportunities are situations or conditions presented by the environment that would lead to higher results or success of the business (Gurel & Tat, 2017). Athlete's Warehouse had three opportunities; the location -the business would be located in an area with a large customer base. Grand Falls was the main service center for the retail market. Moreover, Colin discovered that 36% of the population in this area was his intended target market. Secondly, Sports top a sports retailer could not offer expert advice; thus, the Athlete's Warehouse would have a better opportunity to make huge sales. Thirdly, Grand Falls provided a ready market for sports goods. According to Colin, there were about 3000 people in that market area that were ready to buy sports goods at reasonable prices.


Athlete's Warehouse business threats were as follows; substantial operational costs, there would be very many costs ranging from labor costs to other expenses such as sales and advertising; the competition from other sport goods businesses, there existed large competitors who had been in the market for quite a period of time; and the three sporting goods stores which sold goods at very low prices.


Athlete's Warehouse had to consider all the strengths, weaknesses, opportunities, and threats. SWOT analysis indicates that the business enjoyed strengths and opportunities, which offered them a significant advantage compared to their competitors. Inadequate initial capital, high operation costs, and competition from large competitors in the market would pose an enormous problem. However, the Athlete's Warehouse SWOT Analysis shows that the business was not bad off, and the plan would be highly viable despite the threats and weaknesses.


Gurel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International Social Research, 10(51).

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Athlete's Warehouse SWOT Analysis. (2022, Mar 19). Retrieved from

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