Big 5 Executive Summary

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Big 5 Sporting Goods Corporation does not have a clearly defined mission statement. Understanding Big 5’s mission can be deciphered using their annual reports. The following statement comes directly from the company’s 2014 Annual report; “We believe that over our 59-year history we have developed a reputation with the competitive and recreational sporting goods customer as a convenient neighborhood sporting goods retailer that consistently delivers value on quality merchandise. We reinforce our value reputation through weekly print advertising in major and local newspapers, direct mailers and digital marketing programs designed to generate customer traffic, drive net sales and build brand awareness. (Big 5 Sporting Goods Corporation, 2014)”…show more content…
The company has set a goal of opening at least 5 stores a year in small communities across the country. The current number is closer to 12 per year. (Big 5 Sporting Goods Corporation, 2014) This goal is short term (year-to-year) and feeds the long term goals. As with most corporations the long term goal is to make profits while providing quality products or services. Big 5’s expansion has been systematic and designed to capitalize on name recognition. Over the past five years Big 5 has opened 62 stores, an average of approximately 12 stores a year. The state of California makes up forty four percent of those new store locations. This growth is amazing considering the economic recession during this period of time. The economy has bounced back in a big way in the last two years. Big 5 has grown significantly during the past two years. In 2012, the company built fourteen new stores. In 2013, they built seventeen new stores. If this trend continues the company will be looking at an average of twenty new locations per…show more content…
E-commerce is the fastest growing sector of retail sales in the world. Big 5 will focus more effort on this channel of sales in order to stay competitive in the market. The larger focus on e-commerce will increase sales, but in a different way. If the sales increase greatly the corporation can slow the expansion of physical stores and focus more on shipping and distribution centers. E-commerce is a way for the company to appeal to the younger demographic and stay within the realm of other competitors like Dick’s sporting goods. With the need for expansion; Big 5 needs to grow into new markets throughout the United States. Currently, Big 5 operates out of the western United States. This poses a great regional risk. For instance, if California was hit by a great natural disaster most product distribution would come to a screeching halt. California is also prone to earthquakes and droughts. It is important for Big 5 as a brand to expand nationally. Big 5 like most other large retail corporations needs to focus on data security. Data security is in a catch up phase. With the move to a more virtual shopping experience, data security quickly jumps up the list of concerns. Technology is growing so fast that it is almost impossible to be ready for every new threat. Big 5 must stay ahead of the curve if they want to avoid a large scale data

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