Page 20 - AYZ.indd

AYZDOTLLC

>>MAJOR INDUSTRY PLAYERS
4
Company Market Share Description
Bass Pro Shops Inc. 18.5% Bass Pro Shops Inc. (Bass Pro Shops) is a retailer of outdoor gear and apparel. Headquar-
tered in Springfield, MO, the company has more than 100 stores, including five in Canada,
each of which is customized to reflect the character of its region. Bass Pro Shops operates
in many outdoor and active lifestyle segments. Bass Pro Shops has exhibited strong growth
in recent years, increasing the overall revenue of almost 20.0% between 2014 and 2016. This
growth is expected to continue as the company has expanded much of its market share in
the past year through mergers and acquisitions.
Dick’s Sporting 15% Dick’s Sporting Goods Inc. (Dick’s) is an athletic goods retail company that was founded in
Goods Inc. Binghamton, NY, in 1948. The company was originally named Dick’s Clothing and Sporting
Goods Inc. before changing its name in 1999. Dick’s operates as a full-line sporting goods
retailer with an assortment of brand-name sporting apparel, equipment, and footwear. The
company is a Fortune 500 public company with 45,200 employees and 716 stores across
48 states, in addition to its subsidiaries Golf Galaxy, Field & Stream, and True Runner, which
have a combined 129 stores across 34 states.
>>COMPETITIVE ADVANTAGES

The following is a listing of the primary competitive advantages of the Company upon entering the market.
• High-quality products with premium comfort
• Highly competitive pricing strategy
• Clothing comfort in sports apparels
• The products are fashionable
• Product range and variety for various consumer segments
• Active and inexpensive marketing strategies
• Location of brick and mortar in highly approachable location
• Sponsoring sports events to establish a good brand image
• Remaining agile, flexible and responsive to consumers to enhance brand loyalty
• Resource, capabilities that will contribute to the success

>>BARRIERS TO ENTRY

The Sports Apparels and Accessories industry has moderate barriers to entry according
to research. The Sports Apparels and Accessories industry exhibits moderate barriers to
entry. The most significant barrier prospective operators will need to consider is high
fixed start-up costs. The initial cost of establishing or purchasing a retail outlet and
providing sufficient inventory to retail stock shelves may prohibit new entrants from
entering the industry. Also, operators require a line of credit for the purchase of store
inventory, which can be extensive. Industry entrants may incur expenditures related to
advertising and marketing as well, which are critical for generating a market presence and consumer interest. New entrants will also need
to consider the market dominance of players already operating in this industry. Prospective operators will contend with the strong price-
based competition.

4 Ibid

20