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  • Essay / Critical Analysis of Sports Direct - 2845

    IntroductionAs the retail industry faces extraordinary challenges (Deloitte LLP, 2011), businesses are facing increased competition. Porter's leading authority on competitive strategy is largely responsible for the increased emphasis on a company's strategy. The retail industry is becoming heavily saturated as the world becomes smaller; This point alone makes strategy a vital part of business success. Strategic management is essential for the development and expansion of all organizations. Sports Direct must align its mission and vision with its operations to remain accustomed to its environment (Joseph and Eshun, 2009). The company must consider potential strategic issues related to the importance of maintaining its competitive position without compromising cost or value, while maintaining superior operational efficiency. This report will primarily focus on internal and external macroeconomic analysis, accompanied by a critical analysis of Sports Directs' business and operations. strategy at the corporate level before recommendations are made. This will highlight how the organization can maintain its competitive position in today's hypercompetitive and increasingly globalized market (Hanssen-Bauer & Snow, 1996).2.0 Overview of Sports DirectFounded in 1982, Sports Direct is the UK's largest sports retailer by turnover and operating profit, overtaking JJB sports in 2006. Operating across 500 stores and employing over 11,000 people, Sports Direct now has an estimated value of 4.3 billion pounds sterling and offers its consumers an unrivaled range of sports clothing and equipment at an unbeatable price across a wide variety of products. third-party and Group-owned brands.3.0 Sports Direct StrategyCompetitive strategy is about being different...... middle of paper ......prior staff training is also recommended to ensure staff have the specialist knowledge on the products they sell and provide superior customer service. ConclusionSports Directs' current strategy proved successful during the global financial crisis of 2008. Their discount culture allowed them to develop a low-cost competitive advantage. Through effective decision-making and superior efficiency, they have become the UK's leading sporting goods retailer, at the expense of their old rival JJB. However, as the economy begins to recover, Sports Direct must evolve to meet an emerging consumer trend in order to maintain its competitive position. Implementing the above recommendations, in conjunction with a reformed strategy, will enable the company to continue to capitalize in the market. sportswear market.