Internal And External Analysis Of Rebel Sport Limited

This assessment asks you to collect as much information as you can about the industry partner (i.e. Rebel Sport) problem . You will engage in secondary (desk) research, and some primary research is desired also.  You will collect and organise qualitative and quantitative data into a thematically-organised document. 

Rebel is a retail company of the sports equipment; it operates in Australian and New Zealand. It was established in 1985 as franchise agreement with the Briscoe Group. It is a leading retailer of the sporting and leisure equipment in Australia. The company offers the incomparable range of products to the customers. It works for well-known and latest brands like ASCIS, Adidas, Nike and Puma. The company has 160 stores across Australia with the 6000 employees. It offers the healthy lifestyle to the people by satisfying their need to achieve the fitness goals. The company focuses on delivering outstanding customer services to the customer. It is a part of sports retailing which is a proud moment for the company. The company appreciate its employees for their work thus, the skill and dedication of the team member is the greatest asset of the company. Rebel sport comes under the Retail industry (Rebel, 2018).

In this report, the internal and external analysis is taken into consideration to analyse the Rebel Sport Limited. This report helps the stakeholders, government and investors to identify to make an investment in the company.

SWOT Analysis

SWOT analysis is a tool to identify the strength, weakness, threat and opportunity of the company. It is an internal analysis tool to identify the barrier to operate in the future. SWOT analysis helps to determine the obstacles which come in the way of achieving the company’s objective. It helps the company to achieve the objective by minimising the obstacles. It helps the company to grab the opportunity and understanding the weakness. It helps to eliminate the threats by taking the advantage of the strength of the company (Mind Tools, 2018).
Strength-
It has been seen that the company is well-known for its excellent service. The company serves the high-quality service to its customer which is the strength for the company. The company provides good training to the employees to motivate them to achieve the company goals. The company provides the training to the employees to achieve its targets. The company is a leading company in retailing and it has a big name in the market of Australia and New Zealand which turns into the strength of the company.

Weakness

It is found that the company has high brand value products; the prices of brand value products have always been high. Thus, many consumers are not buying the goods just because of the high price of the products. The company is not good in product demand forecasting that is why company daily inventory is high which consume a lot of cost of the company. Thus, the high rate of daily inventory affects the income of the company. Opportunity-
New trends in the consumer behaviour help the company to open a new market. It has a good opportunity to earn high revenue and expand its business in the large scale. It is observed that the company invest in the online platform to generate the sale. The online platform opened a new sales channel for the company. The company can takes the advantage of this opportunity by knowing its customer better and serving their needs with the help of big analytics. It is a great opportunity for the company to expand its business to the global scale. The adoption of new technology provides the opportunity for the company to enter into a new emerging market which increases the revenue of the company.

SWOT Analysis

Threat

The Company faces many threats like Changing the nature of consumer buying behaviour from online channel is a high threat to the existing physical stores. The demand of the physical store's consumers is decreasing thus the company suffer heavy loss. Shortage of threat is also a big threat for the company. As the demand increases, the local distributor is increasing in the market which increases the competition in the market. It can be said that the competitors are the big threat for the company. New technologies adopted by the competitors could be a serious threat to the company. Consumer income is also a big threat for the company; due to the high price of the brand's product some consumers cannot afford the product which has a negative impact on the revenue of the company.

PESTLE Analysis

PESTLE analysis is a tool which is used to analyse the macro-environmental factors which affect the company. These are political, economic, social, technical, legal and environmental factors. The external analysis affects the company position, PESTLE analysis helps to find the potential solution of the problem (Chron, 2018). It reduces the impact and effects of threats of the company. It helps the company to make the strategies to expand the business in the new market. It helps the company to change the teams and condition according to the political and legal factor of the economy (PESTLE Analysis, 2018).

Political

Political factor determines the government policies which affect the company. It can be said that the stable government helps to take the decision for the business of the company like implementing the GST in New Zealand; it is the decision which is taken by the New Zealand government for the business and it represents the New Zealand as a stable government (Cohen, 2017). The government of New Zealand imposed the new tax policies and laws which is useful for the businesses. Rebel sports has a good advantage to run the business in New Zealand just because good decision taken by the New Zealand government.

Economic

Economic factor determines the performance of the economy which directly affects the company. It is found that a rise in the inflation rate in any economy will change the prices of the goods and services of the company. If the disposable income of the people is less; then the capacity of the people to buy the products is also declining. Rebel sport has branded products of high price which affect the consumer’s demands (Becker, et al., 2016).

External analysis

Social

Social factor determines the trend that what kind of trend is going on in the market. It is easy for the company to follow the market trend for the business. Like in New Zealand people prefer shopping in the most of the summer season instead of the winter season at that time schools and colleges organise the sports programs. It is an opportunity for the company to promote its products or to generate the sales in the market (Domitrovich et al., 2017). Rebel sport is sponsored by the brand name by so many local gaming events.

Technological

Technological factor determines the new technology and implementation of the technology. Rebel sport has to aware about the new technology and the implementation of the technology. If the company adopt the new technology then the consumers attract towards the company products because it is more convenient for them to walk with the trend of the market. If the Rebel sport has EFTPOS machine in the store then the customers have no worries to carry the cash, it is easy for the customer to swipe the credit card and save its time. The company can provide the good services to the customer with the help of new technology (Palacios-Marqués, Soto-Acosta, and Merigó, 2015).

Legal

Legal factor determine some laws which affect the company environment. It is compulsory for the company to follow the certain laws which directly affect the company like customer’s laws, fair trade act, labour laws and safety standard. According to the acts, the customer has a right to claim for the defaulted goods and buy good quality of products (Macaulay, 2018). Rebel sports have to fulfil the legal requirements which are set by the New Zealand government. Rebel sports have to pay the taxes and give the proper wage rate to the employees (Commons, 2017).

Environmental

Environment factor includes population, geographical location and weather. It is an important factor for the Rebel sport. It is important for them to upgrade its products with the changing of weather and demand of the consumers. According to the weather, the company has to upgrade its products like in winter season, the company offers the woollen sportswear but in summer season company sale cotton clothes. The fast-changing demand of the consumer affects the company environment. Sometimes it is difficult for the company to upgrade the products according to the demand of the consumers. It is observed that the Rebel sport product is not harmful to the environment (Cody, and Jackson, 2016).

PESTLE Analysis

Porter’s Five Forces is a framework to analyse the external factor of the company. It analyses the threats to the company. In this model, there are five forces which analyse the strategic and competitive environment of the company. These five forces are under the threat of new entrants, competitors, substitute product, the bargaining power of supplier and buyer. All of these forces help the company to analyse the current position of the company. It helps the company to prepare itself for the strong position to prevent itself from the threats. It also helps the company to build the long-term strategy and attain the competitive advantage in the market.

It has been seen that Rebel sport has the high bargaining power of the buyer. By following the e-commerce strategy, Retailers start selling the products online which is more convenient for the consumers. Nowadays, the buyers have many options to buy the product with the single click at the lower prices. From the above analysis, it can be said that the company supply the high prices of products. Thus, the consumer can switch their demand towards the online products (Zhang et al., 2018).

It is found that the company suppliers have high bargaining power. Due to increasing the demand of the consumer, retailers supply more products which directly affect the manufacturers. Manufacturers cannot meet the demand of the retailers so they supply the products with the high rates.

It has been analysed that the company has a high threat of new entrants just because of the low-cost requirement. Consumers demand is also a reason for a high threat of new entrants. Due to increasing the demand of the consumers, new companies are getting attracted towards the market.

From the above analysis, it is observed that the company has a high threat of competitors just because of changing consumer behaviour. Nowadays, consumers are getting attracted towards the sports activities which increase the demand of the consumers for the sportswear and sports equipment. Retailers decrease their prices to generating the sale or for attracting the customer towards their products but the company supply high prices of the product thus it has a high risk of losing the customer (Porter, and Heppelmann, 2014).

The company has the high threat of substitute’s products because the new companies enter the market with the new technology which offers the more convenient services to the customers. New technology is the reason behind the high threat of substitute product of the company (Daily, Kieff, and Wilmarth, 2014).

Conclusion

From the above analysis, it has been concluded that the Rebel sports operates in Australia and New Zealand. The company has an opportunity to increase its sale with the help of e-commerce strategy. The government of New Zealand imposed the tax policy and GST, thus the company has to follow the policies to run the business in New Zealand. The consumer demand is change according to the trend which affects the sale of the company. Nowadays, consumers are getting attracted towards the sports activity which raises the consumer’s demand for the games equipment. Due to increasing retailer, the company has the high bargaining power of supplier and buyers. New companies enter the market with the new technology which attracts customer towards their good and services thus, the company has a high threat of substitute products and new entrants (Christensen, Raynor, and McDonald, 2015). This industry is growing rapidly thus the company also has a great scope in near future. 

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