Bass Pro Shops Business Analysis Essay -- Business Strategy Analysis

Primary Problems/Decisions to be made: Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going t o have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand. II. SWOT Analysis: Strengths: 1. Brand image: a. Identification with consumer -Store brand name enables product to be accepted and adopted more easily by consumers because of brand recognition 2 Selective Distribution: a. Bass Pro is able to expand the product, name, and experience to a larger customer base without cannibalization of their company by setting a radius limit on how close their stores are built. b. They meet the needs of their target market by building their stores in closer proximity. 3. Unique Store Image: a. ... ... a high brand image; while, maintaining customer satisfaction with existing customers and breaking into new markets. Bass Pro is one of the largest U.S. retailing chains of outdoor sporting goods and has an image to uphold, not only with its name but with its products. Maintaining customer satisfaction with existing customers keeps them loyal. Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins. Objectives: 1. Open two stores each year for the next five years. a. Expand at least two of those stores in western states 2. Increase sales by 25% to $1.5 billion in the next 4 years 3. Increase sales to current customers by 5% each year by using innovative technology in order to find more efficient ways to distribute and manufacture our products leading to more competitive pricing.