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Sports Global Strategy for Product Specialisation

Question

Sports Global is a business that provides and sells sports-related goods through a number of high street stores, distributed throughout the country. Previously, their purchasing department acquired goods from wherever they could find them at low cost, but now they are thinking of taking a strategic decision as follows:

  • To specialise in a few chosen sports and provide/sell goods relating to only those sports
  • To link up with a few manufacturing companies in the Far East who would supply goods/products based on requirements specifies by Sports Global.

Sports Global have also realised that if they decide to make a strategic change as above, they will also need to update and devise new procedures, implement new technologies (such as automated ordering), work more collaboratively and adopt new approaches to management. They already have a number of information systems (IS) but they are aware that changes will need to be acquired. They are also aware that they will need to make necessary changes elsewhere as well.

The organisation has not yet taken a strategic decision to create what they call ‘new-look Sports Global’, but they are conducting a feasibility study and seeking advice from experts.

The above is a brief description of the situation at Sports Global. In this scenario, you are not required to know how the company operates or what their policies or decision making procedures are. However, you are required to answer the questions asked below, based on the broad scenario described above, and provide your opinions and suggestions based on the knowledge that you acquired through the study of this module. Please note that any technologies or information systems that you mention in your answers must be relevant to the new-look Sports Global.

 

Sports Global’s new strategy appears to be focuses on ‘product specialisation’. Discuss THREE (3) benefits that the new-look Sports Global might achieve through this approach.

 

Summary

 

This question belongs to management and discusses about Information System of Sports Global Company.

 

Word count: 93

 

 

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