Fit Shop Analysis

Fit Shop Analysis


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Fit shop case study analysis

Susan has identified an opportunity in the recreation sector by taking advantage of the lack of knowledge of the existing business. She sees it an opportunity to provide and sell recreation equipment with personalized services to the customer to ensuring right equipment selection.

She has successfully identified a team of management. Having the manager being a commerce person it shows that’s he appreciates the professionalism in her business.

Hiring the psychiatrist and a kinesiology expert to offer high-quality advice creates an excellent avenue for developing a good clientele base.

Salesmen’s training is an excellent strategy to improve customer service and her idea to train them will raise the quality of customer service in the stores. Furthermore, the need for the personal development plan of her store staff is seen as a good strategy of to have a good team of salesmen who will handle the expected crowd of customers. However, the staff should not be hired at once; they should be hired on an incremental basis as the activities increase to cut down the operation cost.

Her analysis of her competitors’ ability will enable her design a good pricing model. Though the competitors can price lower than Fit shop, her social responsibility of providing high-quality advice will make her business to outdo her competitors.

Her intention to open several stores at once does not seem to be a good idea. She should rather start small and grow big. The reason behind this is because the market is unpredictable about the sales. She may end up investing all initial capital and have working capital complexity in future.

Delivery of the goods in large quantities may reflect some benefits in benefits but for a starting business she may end up purchasing dead stock that will tie up the capital. She should, however, supply some of the goods on demand and stock the most volatile stock.

Her SWOT analysis does not involve analysis of the possible threats that might face the business in future. She should ensure full identification of the strengths, weaknesses, opportunities and threats towards her business.

Compensation of employees is very imperative. She should not reward her staff as her competitors do. As a beginner, the starting remuneration of the employees should be reasonable for a small business and increase as the operations profits grow. However, for the sales staff salaries should be based on the amount of sales. They should have a basic constant salary and a bonus expressed as a percentage of sales to motivate the employee and work harder to win more customers.

The primary factors considered in making the above decisions are: vulnerability risk of the business to failure, the scope of the market and the customers, the amount of capital available as they are funded and progress will be essential, competitive advantages of the company in extra customer service provision


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