SWOT and PESTLE Analysis of Sports Direct International PLC

Context of Business
Table of Contents

INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Perform a SWOT and PESTLE analysis for chosen business....................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business context refers to understanding of the factors that effect business in different
sectors, furthermore it also tells about how decisions in business are executed and ultimately for
what aim it is directing towards. This can be a single business or a huge business community or a
specialized project( i.e. an initiative) (Cagin and Senvar, 2022). In this report there is in depth
information given on Sports Direct International PLC, headquartered in Shirebrook, England. Its
founder is Mike Ashley. It is owned by Frasers Group, is a UK based retailing intellectual
property company. It sells their products online and have some physical outlets of textile, sports
equipment, footwear, cosmetics and electronics. It is the largest sports goods retailing sector.
This company's operations are usually in low margins. It's gross profit was found to be £1.53
billion. This report comprises of SWOT, pestle analysis, strength, weaknesses, opportunities,
threats, Goleman's leadership style and Corporate Social Responsibility.
MAIN BODY
Perform a SWOT and PESTLE analysis for chosen business.
Strength Weakness
 It is the biggest retailing enterprise in
sports goods all over UK , the strategies
used by the organisation attracts
premium customers as they are
experienced.
 This company has partnership with
some brands for instances Puma, Nike,
Adidas and Under Armour, so they help
in approaching more customers and
they are strengthened in multi
channelled elevation strategy for
making more customers.
 This is a well known company spread
over countries like UK, Europe and
 Some weaknesses for which the
company need to be attentive are that
stores are not diversified so they should
expand for increasing the brand's
awareness somehow.
 They are underpaying for employees
that's why they stay temporarily.
 The weak part for the company goes
eventually in hiring workers, once UK
government identified that 260 workers
were unpaid even the minimum wage.
 The weak part for the company goes
eventually in hiring workers, once UK
government identified that 260 workers

America. The retail group has taken an
approximate revenue of £2,203.3
million for FY20 which has been grew
for about 23.6% from the previous
year. It is committed for enlarging its
premium segment in sportswear,
fashion and lifestyles. It reaches out to
the competitive pricing as the other
brands are also struggling in the matter
of price, meanwhile this company has
lowered its margins so as to make more
customers.
were unpaid even the minimum wage.
 It leads to an embarrassing situation for
the company. The company has been
criticised for an ill-mannered and poor
working situations for example the
company got caught in mistreating
workers.
 Their workers were penalised for
having short intervals, for just drinking
water or for sick leaves. These things
need to be improved within the internal
part of the organisation (Long and
Young, 2022).
Opportunity Threat
 Opportunity for Sports Direct is the
elevation in its stores for experienced
customers as they notice the strengths
of them. They increase health
precautions for rising sports market's
exponential growth.
 The organisation has captured U.S.
Market since 2017, Republic of Ireland,
Malaysia and many countries in Europe
so this brings an opportunity for them
to perform in geographical areas.
 Threats observable for them are some
fierce competing companies which
have already captured the market more
than this organisation and those
companies are Amazon, H&M, Foot
Locker, Hibbett Sports, ASOS and
Gensco.
 A big threat found for the company is
that ultimately production cycle will
degrade if the costs are becoming
higher. Brexit caused an impact in the
country's economical disruption as well
as to the sports industry eventually.
Pestle analysis
Pestle analysis for Sports Direct is mentioned thereon.