Sporting Goods Industry Analysis

Sporting Goods Industry Analysis - Sporting Goods Industry...

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Sporting Goods Industry Analysis Management 476 Dr. Duffy By: Table of Contents 1
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Industry Overview 3 Economic Forecast (Andrew Volpe) 4 Competitive Structure (Michael Bates) 11 Audit (Jonathan Zmolik) 14 View of the Future (Group) 16 Overview Market definition 2
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The sports equipment market consists of equipment for ball sports (baseball, softball, basketball, soccer, football, volleyball, cricket, hockey, etc), adventure sports (camping, hunting and firearms, skin diving and scuba, water ski-ing, surfboarding and sailboarding, etc), fitness (exercise bikes, home gym, rowing machine, hand/wrist/ankle weights, treadmill, jump rope, stepper), golf (clubs, bags, balls, gloves, carts,etc), racket sports (tennis, squash, badminton, etc), winter sports (downhill and cross-country ski-ing, snowboarding, etc), and other sports such as archery, billiards, indoor games, bowling, in-line skating, martial arts, wheel sports, pogo sticks, and fishing equipment. Market values are calculated at retail selling price (RSP). Any currency conversions used in the creation of this report have been calculated using constant annual average 2009 exchange rates. (This definition is from Datamonitor, Reference Code: 0199-0218 Publication Date: May 2010) Economic Forecast 3
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PROJECTION OF SALES Industry The industry is expected to see a growth in sales as early as 2010. The projected average growth for the industry for the next 5 years is a 1.46%. This is a big improvement for the industry because sales have decreased by approximately 12% since 2008. ECONOMIC FORECAST OVERVIEW The Sporting & Athletic Goods Manufacturing industry is basically broken into two sides. There is a sales side which is more capital insensitive because the suppliers need to sell the products to earn capital. The manufacturing side of the industry involves labor intensive characteristics. There is a high amount of production that goes into effect to make the goods our industry produces. A positive aspect for the industry is they are not dependent on limited sources of supply for its raw materials. The industry has a wide Projected Volume of Sales Sporting Goods and Manufacturing $ million % Growth 2009 12,624.7 0 -3.2% 2010 12,220.7 0 1.50% 2011 12,404 2.10% 2012 12,664.5 0 0.30% 2013 12,702.5 0 2.20% 2014 12,982 1.20% 2015 13,137.8 0 CAGR: 2009-14 1.46% Source: IBISWORLD 4
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variety of raw materials. Since it is a manufacturing industry, the materials can range from steel for playground equipment to carbon fiber for fishing rods. These materials are easy to find around the globe. From a global standpoint, international markets represent a strong opportunity for growth for manufacturers in this industry. This opportunity is happening because of the continuous health boom in Europe and the rising focus on fitness and healthy lifestyles by more wealthy patrons in Asia and Latin America. Another global action is the improved imports from low-cost countries such as China. As
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This note was uploaded on 12/02/2010 for the course MGT 476 taught by Professor Duffy during the Spring '10 term at Sam Houston State University.

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Sporting Goods Industry Analysis - Sporting Goods Industry...

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