BUSM 3200 Strategic Management
Assignment Task 1:
Strategic Analysis and Strategy Evaluation
Table of Contents
Introduction of Sports Planet
Porter’s 5-Forces Model
Business Strategy for Sports Planet and Value Chain
Suitability of Current Business Strategy
This report is aimed to analyze the strategy employed by Sports Planet, an indoor futsal provider and how they have became one of the leading names in Malaysia. The report will start off with the introduction of the company follow by the PESTAL analysis, Porter’s 5-forces model, VRIN analysis, business strategy and value chain of the company, the suitability of the current business strategy and lastly the conclusion.
Section 1 – Introduction of Sports Planet
Sports PLANET is the number one provider of the perfect indoor futsal experience in Malaysia. The company began in November 2002 as a response to the growing need for good futsal venues, facilities and services. Within one year of its induction, Sports Planet had opened up 4 additional venues and holds the record for the single largest indoor soccer venue as recognized by the Malayan book of records. Ultimately, Sports Planet targets football enthusiast and offer the service of convenient and quality futsal venues. Sports Planet aims to advance the sport of futsal by developing futsal skills, inspiring life and fostering bonds and communication.
Section 2 – PESTAL Analysis
Political - Sports Planet was recognized by the Malaysian Association by being awarded the prestigious ‘Most Promising Franchisor of the Year’ and ‘Best Sales Growth’ awards. As the Malaysian Franchise Association was formed to support the implementation of the government program to promote entrepreneurship through franchising, Sports Planet is one of the many franchisors that the government in Malaysia is trying to encourage. The Malaysian Government has also made it easier for franchisees to obtain special government based loans that are guaranteed by the Credit Guarantee Corporation. The availability of these loans has made the setting up of a Sports Planet franchise venue extremely affordable and profitable, thanks to the support by the Malaysian Government. The support by the government is important as it makes it easier for franchisees to set up a futsal venue under the name of Sports Planet and with more franchisees, this will help Sports Planet spread their business all over Malaysia and they even have a futsal venue in Singapore as a result of this franchising. Economical - As a Sports Planet franchisee, there are many economical benefits that will assist and support the running of the business. Franchisee’s will receive sponsorships by ADIDAS and REVIVE, marketing advice and techniques, full consultation on the layout of the selected venue, hands on training for managers and supervisors and cash flow forecast with detailed costing. It will cost around RM450 000 to RM850 000 for capital investment to become a Sports Planet franchisee and capital investment is expected to be recouped within 12-18 months, depending on the business generated at the venue. These economical benefits are important as it will help to entice franchisees, as well as provide great assistance in the running of their futsal venue. This will encourage more franchisees to venture into this business as they know they will get capable assistance and there is a lower likelihood of their venture not making a profit. Social - With football being the most popular sport played in primary and secondary schools in Malaysia, implementing a futsal culture will be integral to sustain as well as promote this culture. Enthusiast who cannot find a suitable location to play football due to heavy industrialization or inclement weather will be...
Please join StudyMode to read the full document