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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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Sports Direct International PLC is today the UK's largest sporting goods retailer, and operates a diversified portfolio of sports, fitness, lifestyle and brands. This report shall mainly cover the marketing issues that the company has faced and how to combat this problem.


Almost a large portion of a billion pounds was wiped off the estimation of Sports Direct after the retailer stunned the stock market with a notice that yearly benefits would be £40m lower than anticipated. Offers in the organization dove by over 15%.

(Butler, S. 2016)


Sports Direct as if 2017 had the biggest market share beating their biggest competitor JD sports. 'Sports Directs 2017 market share is forecast as 22.9 percent, this is 3.5 percent points ahead of its greatest competitor JD sports' (verdict 2017). The industry giant also caters for all segments as it follows an aggressive strategy in acquiring brands all over Europe which gives it chance to achieve clients crosswise over various fragments.'The company's brand include huge labels such as adidas, Nike and puma' (Financial times 2017). Sports directs Strong online presence with the the slogan, '24 hour delivery', offering access to clients to have their items conveyed to their homes. This makes it more convenient for customers which in turn can create greater brand loyalty. The company has the ability at entering new markets and making achievement of them. The development has helped the company construct new income streams and differentiate the monetary cycle chance in the business sectors it works in.

Though on the other hand the company has some weakened that may set it back such as weak brand reputation. 'Sports Direct has been branded as one of the "weakest" reputation of any Uk brand' (Hobbs,T. 2016). The company needs more investment in new technologies such as virtual fitting. Given the size of expansion and diverse geographies the organization is intending to venture into. Sports direct need to put more money into innovation to incorporate the processes across the board. At this moment the interest in advances is not at standard with the vision of the organization.

The company has the opportunity to enter new markets for expansion. 'Sports Direct buys 26 percent stake in Game Digital' (Kollewe, J. 2017). 'Ashley and many analysts, believe Sports Direct's model of cut-price offers on top brands such as Nike and adidas, subsidized by high-margin of own-brands including Dunlop and slazenger can be replicated across continental Europe' (Maidment, N. 2014). Though on the other hand the company also battles external threats such as JD sports its number one competition in the market. 'JD becomes UK's biggest sporting goods retailer' (Whiteloks  S. 2016). Not only this busy as well as increased prosecution costs, 'Raw material costs see record increase as a result of a weak pound' (Chapman, B. 2016).


Sports Directs objective is to be a leading sports and lifestyle retailer internationally and to deliver sustainable development for shareholders in medium to long term by offering clients an unrivaled scope of top notch leading brands. The smart objective that was picked and would be most appropriate for the company was to achieve a top 50 ranking within customer service by 2020 as this will help the organization combat their biggest weakness as Sports Direct is currently sat in last place in comparison to other UK companies. Furthermore this will make a superior brand picture and notoriety for the organization. By bettering their customer service, this will help the company get even more awareness and loyal customers than it already has.

'Sports Direct is now valued at £2.1bn by the stock exchange, while JD is worth £2.2bn. As recently as the start of December, the companies were worth £4.3bn and £1.9bn respectively. Apart from the negative publicity affecting Sports Direct, JD is seen to have superior product lines.' (Simon Goodly. 2016). The smart objective of improving customer service will hugely benefit the organization and put them of their competition. Already seen as a huge company, better customer service would help increase market share and would help the Sports Direct get a firm grip of the market.


A strategic direction refers to a course of action that leads to the achievement of the goals of an organization's strategy.

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