The world market for sporting goods has two parts. The team sports and fitness market is worth $ 80, against $ 42 billion for the outdoor goods market. Three kinds of products are made: clothing (46% of production), footwear (30%) and equipment (24%). Here we deal with the environment of the outdoor goods market. There are different categories of activities that take place outside, and we can segment the market according to these different kinds of products: -winter sports (white) - summer sports in the mountains (brown) - Open air activities including golf (green) - Water sports (blue) - Urban sport (grey)
[...] Team sports, racquet sports and golf are however the number of practitioners stagnates. If, alongside giants such as Nike and Adidas, there are still many firms specializing in a sport or a universe, the sector is undergoing reconfiguration. Multibrand / multiunivers groups emerging implement strategies for external growth in order to broaden their offering to growth sectors, to expand into new geographic markets and gain size. Meanwhile, manufacturers rely on innovation to differentiate products and imported products mainly under private label with the tech continues to grow. [...]
[...] These strategies offer are responsible for the creation of new sporting activities (kitesurfing, wakeboarding) that can extend the market for sports equipment and create new consumer needs; How to increase the visibility of products in distribution channels? Supermarkets specialized as Decathlon and Go Sport are nearly 70% of the distribution of sporting goods in France. Faced with the rise of private labels, manufacturers are offering their products less enhancement in the linear. The consideration of these issues and sociological developments cause a reconfiguration of the sector including: The importance of the emergence of multi-brand / multiunivers groups with the recent acquisition of Salomon by Amer Sports, Rossignol by Quiksilver, Lafuma, Oxbow and recently by Reebok by Adidas. [...]
[...] After that, we can focus on the return on assets which is an economic indicator, and to finish there is two financial ratios : the debt leverage and the return on equity This first table gathers all data of the case for each company. This second table permits to compare the economic and financial performance of firms which are on the outdoor goods market in 2005 We can see that Timberland is the most efficient firm of this market because it has one of the lower debt leverage and it has the better asset turnover, the better return on assets and the better return on equity. [...]
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