Sue Koenig, a nationally ranked runner, faces some difficult decisions ahead. Her business, Runners World, has made a very good return on investment in the last ten years, but has recently seen sales flatten out for several reasons. Changes in consumer taste, choices, expectations, life style and increased competition have slowed the growth of a once thriving business. The paper will review the options Sue has and make recommendations for changes in her business. This can best be done in identifying and analyzing the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the current business aspects. . Fundamentally, Sue must evaluate whether the company is strong enough to withstand changes in product and procedures. There is still a large enough market locally for a change. This SWOT analysis will also help determine future market strategy.
Knowledge of runners needs
The business must first look internally at its own strength.
Its primary strength is being a major authorized Nike dealer. Nike; is a brand product and known worldwide by their "swoosh" logo and quality product, it takes little effort to promote the product. Nor does it require a large expense to advertise Nike, as product reputation does that function. An additional strength is Sue herself, being a nationally ranked runner herself, validates her endorsement of the companies product line. . In past ten years she has built a loyal customer base primarily of serious runners, and continues to net a reasonable profit and has sufficient operating capital to make some modifications where considered necessary. Finally, Sue has the foresight of being a successful woman to plan for her company's future.
Single branded product
Reduction of target market
As consumers tastes have changed, Sue knows the time is right to minimize...