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Essay / Bass Pro Shops Business Analysis - 1266
Key Issues/Decisions to Make: The Bass Pro Shop began as an 8-foot-long display area in the back of a liquor store in 1971 and has grown to become a Fortune 500 company that employs more than 8,800 people and has annual revenues now estimated at approximately $1.25 billion. The question is, should Bass Pro Shops continue to grow, and if so, at what pace should they do so? The main problems they might face while expanding are as follows. Could the expansion harm their brand image and if so, how? The competition outside of Missouri is going to be much greater. They won't have the publicity and brand recognition like Missouri. Does Bass Pro have the financial resources to open new stores, if not what options can they exercise? Will negative publicity threaten their brand image as it continues to grow? Will the overhead cost be too high initially for Bass Pro to grow at a rapid rate, if so, at what rate should they grow each year? These are all issues that Bass Pro will have to deal with in the future. Through research and in-depth problem solving, they will be able to make an accurate decision on which areas they should expand on.II. SWOT Analysis: Assets: 1. Brand image: a. Identification with the consumer-store brand allows the product to be accepted and adopted more easily by consumers due to brand recognition2 Selective distribution: a. Bass Pro is able to extend the product, name, and experience to a wider customer base without cannibalizing their business by setting a radius limit on how close their stores are. They meet the needs of their target market by building their stores nearby.3. Single image of the store:a. ...... middle of paper ...... high brand image; while maintaining existing customer satisfaction and entering new markets. Bass Pro is one of America's largest outdoor sporting goods retail chains and has an image to uphold, not only in its name but also in its products. Keeping existing customers happy keeps them loyal. Entering new markets helps the business expand and attract new customers, leading to higher profit margins. Objectives: 1. Open two stores each year for the next five years.a. Expand at least two of these stores in Western States2. Increase sales by 25% to $1.5 billion over the next 4 years3. Increase sales to current customers by 5% each year by using innovative technology to find more efficient ways to distribute and manufacture our products, leading to more competitive pricing..