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The battle of the buyers - a preliminary study of the Norwegian sport retailing market segment and its competitors
2004 (English)Independent thesis Basic level (degree of Bachelor)Student thesis
Abstract [en]

The purpose of this study is to analyze and describe the Norwegian sport retailing market segment and its strongest competitors from a perspective that foreign companies will get an opinion of how the competitive situation looks like there today. Conclusions and recommendations will also be given. The ambition is that this study can be used as a preliminary study for potential entrants. It can also be used from the companies in the market segments to evaluate the situation they are in. Finally this study will give an insight in how a study can be done in a foreign market. Four experts and one supplier with great experience in the line of business have been interviewed. The respondents’ answers, together with extensive literature studies and collection of other secondary data have formed the basis of the conclusions of this paper. The data has been analysed with the use of Aaker’s competition analysis and Porter’s five-forces-model. The single most important cause for failure when entering a foreign market is insufficient preparation and information according to Czinkota (2003). Another crucial factor often neglected is the cultural environment. This stresses the importance for a company to know its surrounding, especially when entering a foreign market. The results of this paper show that G-sport is dominating the industry with market shares of 31%. The second strongest competitor, Sport 1, indicate that they have a successful strategy and may threat G-sport in the long run. The third strongest company, Intersport, have been unsuccessful the recent years but is in spite of this a strong competitor due to its strong organization and European brand name. There are five other multiple sport stores that make the market performers in the industry. The may all be seen as challengers and the one with biggest potential are assessed to be XXL. The competition in the industry is determined of five forces. The strongest force is assessed to be the rivalry among existing competitors. A few characteristics that determine this force are; lots of firms in equal sizes and with equal capabilities, lack of diversity and fierce rivalry. Moreover is strong entry barriers like; cultural barriers, trade restrictions and sharp retaliation existing. In spite of this a threat from strong potential entrants like Stadium and Decathlon exist. They have the strength to “break” through the strong entry barriers and this make the threat from new entrants average strong. The bargaining power of buyers is also average strong while the bargaining power of suppliers and the substitute force are rather weak. It is in other words tough for entrants to establish a company, but once in, there is big potential of earning big profits. The growth trend of the market segment indicates that there may be room for another entrant. To increase the chances of entry it is inter alia important to find an attractive location to the store(s), be carefully prepared, differentiate from the existing competitors, and build the organizational structure and value in Norway as well as adapt to the Norwegian culture. One of the most important things may be to have the financial strength in order to withstand recessions and sharp retaliation from the competitors. This paper is also describing the difficulties with doing foreign market research, which involve among other finding essential data. The more unfamiliar the country investigated is to the researcher, the more difficult is it to find essential information. New tools and techniques may need to be developed and many assumptions may not hold true.

Place, publisher, year, edition, pages
2004. , p. 43
Identifiers
URN: urn:nbn:se:kau:diva-51480Local ID: FEK C-119OAI: oai:DiVA.org:kau-51480DiVA, id: diva2:1099973
Subject / course
Business Administration
Available from: 2017-05-29 Created: 2017-05-29

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf