Strategic Analysis of Sports Direct International Plc

The report explores Sports Direct International Plc's strategic positioning within the UK retail sector using Porter’s Five Forces Model. It assesses competitive dynamics including the threat of new entrants bolstered by low entry barriers, the influence of substitute products such as online retailers on pricing strategies, and supplier power which is relatively weak due to numerous suppliers. The buyer segment exhibits moderate power owing to limited alternatives for Sports Direct's specific offerings. Competitive rivalry within the market is intense, driven by price wars and product differentiation. Additionally, external factors such as economic fluctuations impacting consumer spending, political decisions affecting trade policies, technological advancements necessitating digital transformation, legal compliance requirements, and socio-cultural trends influencing consumer preferences are analyzed for their impact on the company’s strategic direction.

BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Company profile..........................................................................................................................1
PESTLE analysis.........................................................................................................................2
Porter five force model ...............................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business organisation consist very important role in respect to make creative results at
workplace. In this regard, every employee of the enterprise perform their duties and job that are
needed to accomplish desired results at workplace. Hence, functions will be run smoothly which
includes process for effective operations in the business environment (Aithal, Shailashree and
Kumar, 2016). In this context, effective cooperation also ascertain to achieve systematic goals
and objectives at workplace. It is the important perspective that assists for production of goods
through reducing cost in systematic manner. Distribution is also needed to solve problems in
systematic way for ascertain more effective results at workplace. In this context, Sport Direct
enterprise has been selected which assists to accomplish desired results at workplace. In this
aspect, several activities has been performed for producing products for men, ladies, kids, sports,
etc. In addition to this, they are also providing different kinds of brands in their business to
operate functions and operations.
Th company require operating their activities and functions in Greece through they can
enhance profits and revenue at workplace. With this regard, they are developing functions and
operations to carry more effective results at workplace. Therefore, it creates systematic process
for expanding their market in new areas of the nation. In this context, report analysis PESTLE
and Porter five force model that assists to develop effective results in the market.
MAIN BODY
Company profile
Sport Direct is the one of the major enterprise which develops their operations and
functions to ascertain effective functioning in the new areas regarding sports activities. In this
aspect, they are focuses on expansion of the business in new areas for development of the
operations and functions in the new place. It is the systematic transactions that assists to meet
with targets and goals (Ellis, 2016). Sport Direct is the no. 1 retailer of sports products and
services. Therefore, they are categories several kinds of brands in sport to develop effective
functioning in the business environment. Therefore, it is the most effective strategy for
development of the business and objectives to categories several kinds of products at workplace.
The company providing different types of products and services at workplace to attract
people in the business. Therefore, they can operate their activities towards the development of
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the systematic products and services in the market. Beside this, the company also categories their
operations and functions which assists to develop effective functioning in the business unit. They
are providing more discount on the products and services through customers are attracted at
workplace (Levitt, 2014). On Puma products, Sport Direct provide promo code. Therefore, it is
the systematic process that assists to meet with goals and objectives at workplace. With the help
of discount, the chosen organisation has chance to attract several customers in business. They
have cope up with several brands that assists to accomplish effective results in the new areas.
Furthermore, the company also develops their team of personal trainers that assists to accomplish
desired objectives and goals that assists to accomplish results at workplace.
PESTLE analysis
In order to conduct the PESTLE analysis, there are several opportunities and threats are
lies within the environment in which organisation operate their functions and operations. In order
to use the PESTLE analysis, several kinds of solution could be find that make creative
advantages in Sport Direct to reduce their threats for the enterprise. In addition to this, PESTLE
analysis also categories to analysis the factors that are affect to the organisation.
Political factors: It is the important and creative factor that affect to the business towards
the political leaders. In this context, in the short time period policies have been changed towards
the current taxation and future taxation (Makhov, Stepanova and Dubrovinskaya, 2015). Sport
Direct also changing their employment law which create tread restrictions in the business when
they are operating functions in Greece. Wars and worsening relation to the other nations also
determines effective results at workplace. It is very important for ascertain effective functioning
which could be impact to the enterprise and its functions. It is the important element of Greece to
identify potential impact in the market. Stable political environment assists to enhance results at
workplace for development of the business. In the Greece, there is no influence of international
political issues. Therefore, it is the systematic method that assists to accomplish desired results at
workplace.
Economic factors: It is the another important element that could be impact on the
organisation and its economy. With this regard, Sport Direct need to follow all rules and
regulations to provide minimum wage and reduce unemployment from the Greece. It is the
systematic process in which customers are spending more amount that assists to considered for
overall growth of the business (Levitt, 2014). In this context, development of the enterprise will
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be ascertain in significant manner that require for accomplish objectives of the enterprise.
Recession of Greece not determines major problem for the sports' enterprise. Therefore,
economic policy is suitable for the sport enterprise.
Social factors: Social factor will be affect to the demographic position that assists to
accomplish desired results at workplace. In this aspect, business expand their operations and
functions in international areas to cater effective information towards the Sport Direct. As per the
customer demand, requirement, perception, lifestyle, etc. (Ellis, 2016). The selected company
need to analysis their effective results to implement ethnic and religious differences. Attitude
towards the education and environment is the main aspect that solve business problems in
systematic manner. Social factor highly influence to the functions and operations of the company
when they are operating it in new areas.
Technological factor: Technology change day by day so that new innovations will be
develops in systematic perspective towards the operations of Greece. In order to run
successfully, new technology need to be implemented in Sport Direct. It contains for producing
effective results for current and future technology. (Aithal, Shailashree and Kumar, 2016)
Therefore, new technology will be implemented for the organisation to expand operations in new
areas. The chosen organisation has going very advanced so that in recent time it is the major
aspect which need to be solved for development of the business.
Legal factor: Legal factors are another important characteristics in which Sport Direct
need to operate through follow all rules and regulations in systematic perspective. It means that
legislation require follow such as employment, competition among different nations that assists
to meet with effective results at workplace. It could be affect to the changes in European law
which covers different regulation bodies for trading the policies in the business environment. As
per the regulations and rules, the chosen organisation need to operate their functions in business
unit. Therefore, business can operate their outcomes in systematic manner (Chuchrova,
Vilamova and Kozel, 2016).
Environment factor: It is the one of the major element that determines crucial factor for
ascertain effective functions and operations at workplace. In this regard, Sport Direct can easily
develop operations for solve issue of global warming. Therefore, they can ascertain effective
results in systematic manner. In addition to this, organisation need to make concentration to
develop effective functioning in the business environment. Therefore, they are considered
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several rules and regulations that assists to make creative functions at workplace. Hence, there
are several factors exist which could be impact and make consideration to go ahead for the
organisation operations.
PESTLE analysis consist macro environmental factors that are highly influence to the
business to operate effective functioning in the business environment. It includes several
elements that make successful operations and functions which could be made impact on the
business environment. In respect to see towards the political elements, tax laws are major
element that create impact on Sport Direct. This is because, changes in government impact on
the laws which could be determines creative aspect for hiring people at workplace. As increasing
of minimum wages, the company has advantages to develop their target market in different areas
of the world. In respect to focus on the activities of economic environment, business will easily
ascertain different functions. Social cultural is the another perspective which concentrate on
youth. This is because, they are generally buying exclusive products that assists to meet with
effective results at workplace. Hence, the company trying to make their loyal customers which
assists to enhance effective results at workplace.
In addition to this, technological are another important perspective that assists to meet
with goals and objectives at workplace. With the help of the best technology, Sport Direct can
easily attract several customers at workplace. Therefore, they have to implement effective IT
infrastructure, transporting, etc. elements at workplace. Stores also develops their performances
to gather relevant information among team members so that they can identify stock availability
without any branches. Environmental factors also perceive from protecting different elements of
laws. Hence, the organisation has recycled their plastic products and keep it in warehouse which
assists to develop effective results at workplace. In addition to this, legal factors also determines
trading to implement pricing factor at workplace. Towards the products, it is the major aspect
that are marked down in the products. In the prices, the company can charge for their customers
when any mistake will be found (Chuchrova, Vilamova and Kozel, 2016).
Organisation legal form
Sport direct is the international organisation so that they determine the highest operations
in sports products and services. In respect to this, the company operating their functions and Plc
corporation.
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Market structure
Market structure of the sport direct determines as the oligopolistic market system because
it assists to develop more profits and revenue in different areas of the world. In this regard, the
company operating their functions and operations to cater relevant results at workplace.
Market share
Sport direct is using creative material and quality to determines their products and
services. Therefore, it is effective element to develop the target market. In this regard, the
company sporting their goods retailer through operates portfolio of sports, fitness, fashion, etc.
The organisation also develops their segmentation to make effective results at workplace.
Major competitors
In the market, there are several competitors exists which create negative impact on the
business objectives and goals such as sporting goods stores, non store retail, Internet and mail
order retail, Foot Locket Inc, JJB Sports Plc, etc.
Financial performance
In respect to develop effective functioning, there are several aspects included in the
company which could be create impact on its performance. The company has increasing their
revenue around 11.7%. In the UK market sport retail revenue increase 6.63% in which major part
contributes by the Sport Direct retailer. Total earning of the organisation develops that is pount
79.9 exceptional profits and revenue.
Porter five force model
Porter five force model is another parameter to analysis the market for selling the
products and services. In this context, Sport Direct has strategic management tool that assists to
analysis industry and understand profitability level in the market (Zhao, Zuo and Zillante, 2016).
The selected enterprise is the international business so that managers need to concentrate to
analysis competitive forces that can be influence to profitability and develop strategy at
workplace. It helps to increase competitive advantages and long term profitability in the retail
industry of sports. There are mainly five elements exists that assists to meet with goals and
objectives of the organisation. The selected enterprise leading in retail products and services of
the sports. Over the many years, Sport Direct develops their operations and functions for
redefined ways for performing operations in customer services. In this context, five elements
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included that assists to identify impact of international market on the business functions and
operations.
 Threat of new entrants (High): recent time, there are several elements exists that impact
on the functions and operations of the business. In this context, Sport Direct require to
enhance their functions with the latest technology. This is because, new entrants in the
retail brings innovations which includes several ways for performing operations and put
pressure on the chosen enterprise. The selected enterprise require maintain their functions
on low pricing strategy, reducing in the cost and providing valuable propositions for their
customers. As results, they can easily make competitive advantages to develop their
operations and functions in different areas. With the help of innovative products and
services, the business can not attract new customer while give many things to old
customers. In addition to this, the chosen business has advantages to design product with
different material so that prices will be goes high. Hence, company will be shift to the
Greece market easily (Zhao, Zuo and Zillante, 2016).
 Bargaining power of suppliers (High): Most of the organisations in retail industry
determines their operations and functions from many suppliers. Due to powerful
suppliers, Sport Direct need to maintain their relations to reduce their margins in
company. In this regard, powerful suppliers in the customer service sector ascertain their
functions and operations to negotiate power to extract high prices. Hence, the overall
impact of higher suppliers create bargaining for overall profits and revenue in the retail
sector operations. In order to build the efficient supply chain with multiple suppliers, the
chosen organisation will easily gather relevant information towards the products and
services at workplace. In order to make innovative products, the chosen organisation has
advantages to attract new people at workplace. In this regard, in Greece market research
and development opportunities need to be cater to gain more effective results at
workplace (Chuchrova, Vilamova and Kozel, 2016).
 Bargaining power of customers (Moderate): Buyers demand very things at workplace.
Therefore, they require best offers that are available for paying minimum prices towards
the products and services. It could be put pressure on Sport Direct to make their products
and services in the long run operations. Smaller and powerful customer base of Greece
market create effective impact on the chosen organisation functions and operations.
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Bargaining power of the customers and higher stability seek to increase discount and
offers at workplace. In order to build the large base of the customers, the company can
develop their functions and operations in the market to attract customers at workplace (E.
Dobbs, 2014).
 Threats of substitute products (Low): When in Greece new products and services will
be develops to meet with customers demand and requirement, industry will get more
profits and revenue. In this context, industry will get more profitable functions and
operations to enhance profitability. Main threat to Sport Direct is value propositions and
uniquely different from the present offerings of the company. In respect to oriented
services, the company will easily understand about the core needs towards the
organisation operations and functions. Increasing the switching cost for customers is the
main aspect which could be impact on the functions and operations (Yunna and Yisheng,
2014).
 Competitive rivalry (Moderate): Sport Direct operating their functions and operations
in the competitive environment so that overall profits will be increasing in systematic
aspect. In this way, the chosen organisation has advantages to create long term
profitability that assists to meet with effective results at workplace. In this regard, the
chosen enterprise has several things exists through they can make effective functioning at
workplace such as building sustainability differentiation, building scale to compete better,
collaborating with competitors that enhance market share and size to develop effective
functioning (Zhao, Zuo and Zillante, 2016).
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In order to analysis the impact of five competitive forces, the chosen organisation has
advantages to implement strategists and gain effective results at workplace. In order to make
profitable outcomes in retail industry, trends will be changed that could be impact on the
emerging opportunities for development if the objectives and goals at workplace (Indiatsy,
Mwangi and George, 2014).
CONCLUSION
From the above report, it can be concluded that business organisation consist important
role for ascertain effective functioning at workplace. In this aspect, they are developing
operations and functions to undertake more effective results at workplace. In this way, Sport
Direct has been selected which want to expand their business and operations in Greece.
Therefore, the business need to analysis their functions and operations in new areas to attract
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Illustration 1: Porter five forces analysis
Source: (Sports Direct International Plc Porter Five Forces Analysis, 2017)

them towards the goals and objectives. It is the systematic process which make sure that
profitability will be gain for ascertain more profits at workplace. Furthermore, report
summarized about PESTLE and Porter five forces model to identify impact of macro
environment element on the organisation. In this way, elements of Greece highly impact on the
business to gather relevant information and outcomes at workplace.
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REFERENCES
Books and Journals
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Ranking System using ABCD Framework.
Attipoe, S., Cohen, P.A., Eichner, A. and Deuster, P.A., 2016. Variability of stimulant levels in
nine sports supplements over a 9-month period. International journal of sport nutrition
and exercise metabolism, 26(5), pp.413-420.
Chuchrova, K., Vilamova, S. and Kozel, R., 2016. STRATEGIC ANALYSIS AS A TOOL FOR
STRATEGIC DECISION-MAKING PROCESSES AT INDUSTRIAL COMPANIES.
Aktual'ni Problemy Ekonomiky= Actual Problems in Economics, (176), p.180.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Ellis, R., 2016. Exploring the feasibility of creating a travelling theatre company to aid the
education of children in regards to relevant societal issues in schools and youth clubs in
North East Wales (Doctoral dissertation, Cardiff Metropolitan University).
Foster, A., 2017. An evaluation into the feasibility of a tour company providing tour packages
specifically for sporting events (Doctoral dissertation, Cardiff Metropolitan University).
Hyttinen, N., 2015. American disc golf market analysis–case Obsidian Discs Ltd.
Indiatsy, C.M., Mwangi, M.S. and George, G.E., 2014. The Application of Porter’s Five Forces
Model on Organization Performance: A Case of Cooperative Bank of Kenya Ltd.
European Journal of Business and Management, 6(16), pp.75-85.
Levitt, J., 2014. Strategic Analysis–Six Flags Entertainment Corporation.
Makhov, A.S., Stepanova, O.N. and Dubrovinskaya, E.I., 2015. Planning and organization of
sports competitions for disabled people: Russian experience. Biosciences, Biotechnology
Research Asia, 12(1), pp.877-886.
PANDEY, B.C., 2017. NIKE INC-COMPLETE ANALYSIS: SWOT, PESTLE ANALYSIS. Bankim
Chandra Pandey.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable
Energy Reviews, 40, pp.798-805.
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Zhao, Z.Y., Zuo, J. and Zillante, G., 2016. Competitiveness assessment of the biomass power
generation industry in China: A five forces model study. Renewable Energy, 89, pp.144-
153.
Online
Sports Direct International Plc Porter Five Forces Analysis, 2017. [Online] Available through:
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plc.php>.
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