This article takes a look at the effect of sports authority's recent bankruptcy on the market of sporting goods. It will be interesting to see which firms will increase their market share.
Sports Authority Inc.'s bankruptcy echoed through the sporting-good industry on Tuesday, with companies saying it was creating both hardships and opportunities.Dick's Sporting Goods Inc. said it would try to pick up market share ceded by its longtime rival, which is closing stores as it makes its way through bankruptcy court.When it filed for Chapter 11 bankruptcy protection, Sports Authority indicated it planned to close or sell a third of its 463 stores.
http://www.sltrib.com/home/3634276-155/sports-authority-default-ripples-through-industry
I think it's smart move from Dick's Sporting Goods to identify the leases rather than attacking all of them, because there might be some bad ones in their that might lead to little profit. Also with Sports Authority trying to make a comeback, Dick's Sporting goods are playing their cards well to engulf as much as the market now so if Sports Authority come back they'll find it very difficult to become a strong presence again in the sporting goods market.
ReplyDeleteI honestly see this as a bad sign for Dick's Sporting Goods. While Dick's is striving in the market, many of the firms that are striving are internet retailers that specialize in certain sports rather than having a mass appeal. While Dick's does have a solid online presence, it needs to find a way to be seen as always putting out new products that are top quality.
ReplyDeleteIt is really interesting and eye opening to me that Sport's Authority has gone bankrupt. It definitely displays the cycle and ups and downs of the formation of a company. For Dicks, I think that this could be a good move for them and a way to garner more power in the industry and more market share. It is important that Dicks still stay devoted to their customer base because it is easier to keep the older, devoted customers rather than find totally new ones; however, if Dicks were to pick up some of the leases instead of totally taking them out of the game, this could add to their popularity in the sporting goods industry over all.
ReplyDeleteits kind of weird to see them go bankrupt after growing up with it around, but I can also see why it happened. I feel as if the store has been on a decline for years, especially with more competition from the internet shopping, and it was only a matter of time before they had to shut down. i think it will be interesting to see how well dicks sporting goods numbers will improve with the loss of sports authority.
ReplyDeleteI have to disagree that with Michael on this one. I think that Dicks will do better from this. Although internet retailers are an issue for many industries, I think that in many are affected worse than others. At least for me, I find that when I buy something online and need to return it, it is usually clothing. Each brand fits differently so it is common to get something that doesn't fit. Overall, I think this will improve Dicks sales.
ReplyDeleteI agree with Michael. Dick's Sporting Goods should be somewhat concerned. They just lost their direct competition and internet retailers are growing. This could only be a short term positive for Dick's Sporting Goods.
ReplyDeleteI agree that this should concern Dick's Sporting Goods, as it directly shows the power of online retailers over physical store locations. While Dick's may have a strong online presence, they are rarely price competitive with strictly online companies such as EasyBay...etc.
ReplyDelete