1.

Strength

• Knowledge

The members Colin and Ed had experience on sports. They have been athletes and working on

similar field for long time. So, they have good knowledge through education and experience.

• Continuous effort

Colin never lost his hope to run his business. He kept confidence and worked hard to stand out

for business success. That was the asset for the Athletic Warehouse. Management risked as well

as worked hard by understanding requirement of market. Colin was the one who even got

terminated due to lack of skill, but he kept on understanding those weakness.

• Synergy Effect

The combined effort has worked for business success. Money invested by Ed from retirement

fund and Colin constant effort to improvise the business as well as collecting information of

market brought the synergy effect.

2. Weakness

• Lack of accounting knowledge

Both Colin and Ed lacked accounting knowledge which seems to be problematic from beginning

to end. It is the main weakness of the business. And it does not seem that they acquired those

knowledges again. So, they have been getting problems with funding, cash flows and other

aspects of accounting.

• Different Point of view

Colin and Ed had different point of view regarding customers. And their risk-taking behaviors.

Colin is risk taker while Ed was not. Ed was afraid of taking risk as it was his retirement fund.

Colin thinks that Their market is looking for quality sports product which Ed does not

completely believe.

• Lack of money

For any business, most important is money to setup the company. They also need extra fund for

uncertain situation. Though they had knowledge of sportswear, but they did not have enough

fund to trust on their skill and invest.

3. Opportunity

• Location

The location for business was good. It was busy street as well as there were different kinds of

market like restaurant and malls which means people will be coming to that place for shopping

and they can attract their customers when they come to visit their regular places.

• Limited competition

Another good point was that there is limited competition. There were not many sports company

that provides quality products. So, they have good opportunity to use unique features to attract

customers. They had good point over other business and can define their own image as quality

over price.

• Lack of salesperson with competitor

There was competition but another opportunity for Athlete’s Warehouse was lack of skill

salesperson with other competitor who can individually take of customers based on their
requirement. So, they can take advantage of adding this feature and create a different identity in

the market to differentiate own business.

4. Threats

• Competition

Though not many competitions but still there is competition. Another problem with that

competition is competitors have been there for long period and has been providing low cost

product. Customers will not be able to trust new company that easily. They have to promote and

gain trust form customers.

• High Cost

Since, the market is in center area, it’s going to be costly and crowded. Promotion might get lost

and needs to something that attracts them. It has to be eye catching. First impression must be

good in order to capture the market where people are buying from old business from long time.

• Uncertain Customers

Since, business has unique strategy to focus on quality, company is uncertain of customers. They

are not sure if customers are brand loyal or switcher. If switcher then it can become opportunity

but if brand loyal then it’s risky and needs huge money for brand switching.

References:

Carpenter, M. and Bauer, T. (2012). Management Principles. 1st ed. Creative Commons.