Strategic Analysis

Strategic Analysis

The simulation mentions that "Strategic thinking is a readiness for action based on market realities, organizational competencies and brand equities. It is supported by long-range objectives, strategic flexibility and a need to stay ahead of change." A lesson I have learned was that an enterprise needs to build long-term objectives to align with the strategic goals and manage the consequences of contemporary decisions.

BJ's Prosports (BJ's) is currently running thirty- five stores and ranked #3 among bicycle retailers that plans to achieve aggressive growth. Mark Walton, CEO wants to establish a strong competitive edge in retail market, to improve profitability from 28 percent to 38 percent, to achieve annual revenues of 130 millions, and then a strategy would be to manufacture with low-cost. By analyzing the external and internal information, the author first evaluated external reports as U.S. Specialty Bicycle Consumers Study that will give information about customers and The National Specialty Bicycle Retailing Industry Report that will give industry information to achieve long-term objectives. It seems external analysis will be at a higher cost to develop it.

All experts in the simulation recommend their opinions of internal environmental information to finalize long-term objectives: Lillian, VP of Finance, aspires for the No.1 status in terms of revenue allows them to explore avenues for growth other than increasing the number of stores. Ryan, VP of Operations, plans to revamp up their marketing efforts to improve customer passage and to open new stores. Kensington, strategy consultant, expands BJ's as its retail presence in the geographies where demand is growing and sells with new channels. The information they have complied that become No.1 specialty bicycle retailer in the next five years may be the most appropriate long-term objectives for BJ's.

One of the most common analytic tools of internal environmental analysis is a SWOT analysis. The SWOT analysis has performed to analyze internal factors of strengths and weaknesses as well as external factors of opportunities and threats of BJ's that will help to implement the strategic plan. The author identified strong cash position; the AntiGravity's brand equity, their in-store advisory and service network are strengths. The lack of retail presence and the brand perception as a mail-oriented retailer, excess inventory of AntiGravity's bike and low brand recall among the 12-24 age groups are weaknesses.