Sports Apparel: SWOT Analysis & Porter's Five Forces Decision-Making

This report presents a strategic analysis of the sports apparel industry, utilizing SWOT analysis and Porter's Five Forces framework. The SWOT analysis identifies strengths such as a strong market presence and a wide product range, weaknesses including market dependency and labor shortages, opportunities like increasing demand and market expansion in India, and threats such as intense competition and changing regulations. Porter's Five Forces analysis assesses competitive rivalry, bargaining power of customers and suppliers, the threat of substitutes, and the threat of new entrants. The analysis emphasizes the importance of celebrity endorsements, competitive pricing, and supplier relationship management for success in the Indian market. The report concludes that while opportunities exist, the company must address competitive pressures and adapt to local market conditions to thrive.

Decision-Making

SWOT analysis of Sports apparel
1. Strength:
 Great presence in the market of United Kingdom, Australia and Spain.
 Wide range of products with high quality.
 Larger customer base by dealing in footwear as well as sports wear
(Allied Market research, 2018).
2. Weaknesses
 The business of its footwear and sports wear is highly dependent on the
share of market. While moving to India, it is therefore required by the
Sports apparel to research the market well before moving.
 Sometimes, shortage of labor is also the issue that results in delay in
timely delivery of products.

3. Opportunities
 Due to increasing demand of customers in sports and footwear, it
can add the various products in its product line.
 In India, it can expand the market by properly researching the
needs of celebrity customers (Kapoor, 2014).
 The data also states that clothing market in India is increasing to
a great extent that presents a great opportunity to expand its
market.
 It can also add the different products in its product such as
sunglasses and Jewellery.

4. Threats
 Competition is the biggest threat to Nike. In India, there are
competition is the biggest threat that will be faced by Sports
apparel (Shah, 2018). Various brands are developing over time to
get the more market share.
 Customer’s demand is also one such threat that can be faced by
Sports apparel while moving to India. Celebrity customers can
switch to any other brand due to availability of various other
brands.
 There are frequent changes done in the rules and regulation of
India due to which it can face the various problems.

Porter’s five forces of sports apparel
 Competitive rivalry
Due to growing awareness of people in various fitness activities has made the
significant growth in sports apparel globally. Women participation also increased
in fitness and sports activities. In India also, it will be revenue generating business
by 2020 due to increment in income of people. The various key players of sports
apparel are Umbro ltd, Columbia sportswear company, Nike. In India, Nike will
be the major competitor of it (Allied market research, 2018).Nike is using the
well-known celebrity for its marketing that is the biggest factor in India to do
business. By advertising the product with famous celebrity, sales get increases
automatically. In order to beat the competition, it will advertise its brand with the
famous celebrity of India.

 Bargaining power of customers
Usually in the brand market segment, customers bargaining power is
less. However, when it will move to India, it have to serve the
customers in less price. It will help it in increasing its customer base
at the initial level. Therefore, it might happen that customers bargain
with it due to its new entry. It must have to cope up with the need of
customers in India in order to grow well. Customers can easily
switch to that brand who is more celebrity endorse store. Nike is the
best example of this who has more customer demand by using the
famous celebrity of India for its marketing. In this way, it is
necessary for the sports apparel to become more celebrity endorse.

 Bargaining power of suppliers
While moving to India, it can face the bargaining power
from suppliers. As there are various brands that are present
in India who has great market presence. As a new entrant,
suppliers will bargain more. Therefore, it is required by the
sports apparel to research well the suppliers available in
India for various purposes. Therefore, by becoming the
celebrity endorse store, it will minimize the threat from
supplier.

 Threat of substitute
Threat of substitute is high that will be faced by the sports apparel in
India. Customers can switch easily to another brand due to
availability of low switching cost. Various alternatives are available
for customers where they can switch. In India, Adidas is also fast
growing footwear company where customers can easily switch
(Delaney, 2017).

 Threat of new entrant
When it make its market presence in India, it will not face the threat
from new entrant entering into the market. Besides this, there are
various rules and regulations that it have to comply before moving
to India for setting its business unit. For minimizing the threat of
new entrant, it have to advertise its products through well known
celebrity.

References
 Shah, B. (2018) To study the waste caused by discarded footwear
in India and finding a solution for the reduction of the same.
United Kingdom: Routledge.
 Allied market research. (2018) Sports Apparel Industry Overview.
[online] Available from:
https://www.alliedmarketresearch.com/sports-apparel-/market
[accessed 7/12/18].
 Delaney, A. (2017) A comparison of Australian and Indian
women garment and footwear homeworkers. In Women, Labor
Segmentation and Regulation (pp. 193-210). Palgrave Macmillan,
New York.
 Kapoor, A. (2014). Competition Mapping and Market Analysis
for Sportswear. United Kingdom: Routledge.