Strategic Management Analysis of Gymshark: Case Study

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Corporation.................................................................................................................1
Environmental Analysis...................................................................................................................2
PESTLE Analysis...................................................................................................................2
SWOT Analysis......................................................................................................................3
Porter's Five Forces..........................................................................................................................5
Marketing Strategy...........................................................................................................................6
Internal Issues..................................................................................................................................9
CONCLUSION................................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
BCG Matrix..........................................................................................................................10
REFERENCES..............................................................................................................................12
Gymshark Case Study..........................................................................................................13

INTRODUCTION
Strategic management can be referred to as the process of analysing the internal as well
as external environment in order to devise a distinct business strategy. Now, the course of actions
that are being formulated by business with a purpose of attaining competitive edge within the
market place is referred to as business strategy (Pröllochs and Feuerriegel, 2020). Generally, it
provides a route map which is being undertaken by firms for reaching their objectives along with
goals in peculiar time frame. Corporate strategies render guidance to firms across the world to
have leverage in context of opportunities that are being furnished by business environment in
which services are being delivered. An effectively crafted and implemented strategy tends to act
as an enhanced opportunity through which firm can enhance their overall functionalities.
The project seeks to carry out strategic management analysis based on Gymshark, an
online gym apparel company by way of a case study approach. This report covers an analysis of
the environment in which goods are being delivered by organisation that is both internal as well
as external through which relevant opportunities along with threats can be identified. In addition
to this, insight will be provided into industrial analysis with respect to the firm. Lastly, some
recommendations are provided with the help of which organisation can enhance its market
positioning.
Overview of Corporation
Gymshark is a well renowned online wellness attire brand began by Ben Francis all
together of secondary school companions. The corporation offers different items for people, for
example, tank top, shirt, pant, hoodie, shorts, tight, stringer and so on. The organization is
viewed as the most quickly developing as well as biggest brand inside exercise centre attire
within the bounds of United Kingdom. Gymshark provides its high quality offerings within the
bounds of 177 nations over the global periphery (Rafiq, Naz and Maqbool, 2020). Since the very
beginning, the business association has witnessed impeccable development and constantly
increasing base of customers. Gymshark is associated with various popular Instagrammer,
YouTuber and blogger by providing support to them supporting them in terms of sponsorship.
The entity possesses an internet based following of 30 million individuals across the globe. The
gym apparel brand focuses over leveraging ambassadors along with fitness influencer to build a
strong social media standing in the hyper competitive world.
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Environmental Analysis
Business environment can be referred to as the composite of internal as well as external
factors that tend to possess influence over the functionality of a business. It is important for a
corporation to constantly screen the business environment in order to identify the issues that
prevail within its confines (Wenzel, Stanske and Lieberman, 2020). Thus, this allows the
company to undertake steps, plans or course of action with the help of which it can deal with the
consequences in an effective manner. Business environmental analysis deals with external as
well as internal examination through the application of strategic management models and
theories in an effectual way. Now, Gymshark is an online sports apparel company functioning
within the bounds of United Kingdom. The top management of this firm realises the significance
of examining the business environment. Thus, it has decided to make use of certain models for
external and internal screening. In this relation, PESTLE analysis is conducted to portray the
findings related to external environment and SWOT is applied to gain knowledge of the different
aspects linked with internal environment of the company. Both the frameworks are discussed in a
detailed manner as follows:-
PESTLE Analysis
This is an external environment screening framework which is applied by organisations to
identify the probable opportunities as well as threats. This model is applied by Gymshark as
follows:-
Element Description Opportunity and/or Threat
Political This defines the extent of
government intervention in
the functionality of
company.
 Impact of Brexit negatively impacts upon
import of products.
 Interest of government in promoting
sports apparel brands such as Gymshark.
 Adherence to international trade
restrictions and tariffs.
Economical This element lays down the
extent of development of
the economy of a country.
 Impact of economy of countries on sale of
leisure products.
 Strong economies will facilitate increased
number of gym memberships, thereby
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