INDUSTRY ANALISIS

BUS 4633 Assignment: Industry Analysis

Academy Sporting Goods is a sports and outdoor recreation retailer. The direct competitors in this industry are Dick’s Sporting Goods, Big 5, Hibbett Sports, Footlocker, and Golfmaxx. These companies have proven successful in the sporting goods market, but due to a large competitive market two competitors (Sport Chalet and Sports Authority) are closing down. This could create expansion opportunities, but with the increasing demand for active wear and products, other substitute companies still pose a threat to Academy by offering the same types of merchandise. Walmart, Target, and Amazon all sell sporting goods and clothing. More and more consumers are turning to online shopping and specialty stores to buy their products. In order to succeed in the changing shopping environment Academy Sporting Goods will need to differentiate itself from its competitors. Stores like Cabela’s and Bass Pro Shop are not direct competitors due to the scope of what they sell. Cabela’s and Bass Pro only sell outdoor merchandise, not athletic clothing or sports supplies.

Competitive rivalry with Academy’s existing competitors is a result from a number of factors. The demand for sporting good and clothing has risen in recent years resulting in other companies entering the market. There is room for change and capacity in small increments but these companies need to make changes in order to survive in the industry. Although the sales at in the industry are stable, they do experience some cyclical periods such as hunting season and football season. Academy needs to become more diversified to stay ahead of the competition, because currently there aren’t any significant product or brand identities among its competitors. Because there aren’t significant loyalty programs or contracts it is too easy for customers to switch from one sporting goods store to another. If Academy had staff with specialized knowledge in certain products and categories they could attract more business due to customers lack of understanding.

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