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Sports Goods USA

Sports Goods USA. Detailed Analysis of PEST Political Economic Social Technology. Aims and Objectives:. To address the issues of starting a new business importing and manufacturing of sports goods in the USA.

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Sports Goods USA

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  1. Sports GoodsUSA Detailed Analysis of PEST Political Economic Social Technology

  2. Aims and Objectives: • To address the issues of starting a new business importing and manufacturing of sports goods in the USA. • This report includes the famous PEST analysis of USA's market for new businesses. And finally, this report provides the recommendations for starting the business in USA.

  3. Executive Summary: • Current Situation Sports industry currently stands as the largest full line sporting goods retailer in the United States. Although the company has the highest amount of sales in the industry, Sports industry is currently faced with intense competition.

  4. Objectives • Increase market share of individual product category • Increase sales • Increase gross margin • Increase net profits • Increase earnings per share • Increase the price of equipment, apparel, and footwear

  5. Strategies • Corporate Strategy: This strategy will allow the company to increase prices on certain products in order to improve net margins. • Growth Strategy: In addition to the overall strategy, growth is a concern for the company. The company will continue to experience limited growth within the industry. • Marketing Strategy: Although the gross margin on the sales of equipment is relatively lower than the margin on footwear and apparel, the company will continue with the current marketing mix, although some minor amendments in pricing will occur.

  6. PEST Analysis Political Analysis: • USA is having one of the most stable form of governments in the world. • USA has republican form of government where people vote directly for their president. • There is a national government and different states. • The states have the right to make their own laws. • America has two main stream parties, Republican and the Democrats which is currently running the state affairs. • USA is more stable when it comes to diplomatic happenings in the neighboring countries. • Providing more secure space for businesses to establish.

  7. Economic Analysis: E-Commerce Growth: According to WebScore Analytics, e-commerce sales in the U.S. for all industries in 2011 reached $185 billion. In the U.S. sporting goods industry, e-commerce sales in 2011 were $2.1 billion and they are expected to reach $4.9 billion by 2015. Sports Industry Future: The future of the entire sports, fitness, and recreation industry in the U.S. is filled with optimism based on the input from industry leaders: • 40% of the manufacturers surveyed indicate they will need ‘more manufacturing capacity’ this year. • 16% of the manufacturers surveyed said they planned to manufacture more products in the U.S. this year.

  8. Economic Analysis: Concerns: The five leading business concerns for the sporting goods in the U.S. are (1) increasing market share, (2) material cost/availability, (3) slower consumer spending, (4) product sourcing, and (5) lack of consumer confidence.

  9. Social Analysis: Individualism: USA's culture promotes individual and personal achievements. Independence and self-reliance are highly valued. Low Context Culture: They deal with directly and openly. For this reason people don't and will not hesitate to say "no" or criticize other people and their product in public. Egalitarianism: There is a concept of equality amongst the people of the USA.Equal rights, equal social and equal opportunities based on the concept of individual merit is the integral part of American culture.

  10. Social Analysis: Involvement in Sports: More than 70% of US citizens play sports in one way or the other. There is more liking for the American football, baseball and basketball. Age and Other Factors: Group Fitness: Yoga, boot-camp style training, and class-based fitness classes are the main growth categories in the fitness industry. Amazing But True: In 2011, 18-24 year-olds were more inactive than 25-34 year-olds and 35-44 year-olds. Best in the west.

  11. Technological Analysis: Design and development of sports products and infrastructure requires close collaboration between all stake- holders, as well as a good understanding of both life and sports sciences, principles of economy and engineering. The world of sport is continually changing over the years, and the use of technology is just one of those areas that has made an impact on many sports in the modern day.

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