Dicks should become dominant Sporting Goods Retailer through aquisition and expansion.

Implications: As the majority of retailers are experiencing difficulties due to the macro economic conditions, Dicks Sporting Goods, Inc. (DKS) has yet to feel the squeeze. Although comp. store sales could be stronger, DKS has positioned itself as a head quarters store for their sector while also capturing new market share through expansion and acquisition. (Golf  Galaxy)

Analysis:  -Dicks has made several strategic moves both in their merchandising, marketing and operating efficiencies. They have seen an improvement in their brand recognition facilitated by a change in their marketing strategy. They have migrated their spending from mailings and catalogs into Broadcast campaigns which are now ubiquitous on ESPN and the Golf Channel.
 
- DKS has been constantly improving their assortment into better brands which takes them out of the competition with the big boxes. Where just a few years ago about 40% of the assortment could be found at Wal Mart, that number has diminished to < 10%.  Through the acquisition of Golf Galaxy they can now offer an assortment that is closer to green grass golf shops than the pedestrian assortment golf assortment found in their competition and big boxes. A golfer can now find the latest Taylor Made Drivers and all the latest equipment in their stores.

- DKS has also made strategic partnerships with companies such as “Under Armor” that gives them the veneer of being a bit more sophisticated than mainly offering the basic Nike and Adidas assortments. The other big initiative is the introduction of their own private label. The apparel looks strong and not an after thought as in their competitors’ assortments. This will surely have a positive effect on margins as they slowly replace and integrate their brand into the assortment and reduce the penetration of lower margin branded merchandise.
 
- DKS cannot stop evolving due to the competitive sector that they are in and need to continue introducing new product both private and branded. They need to pressure their vendors for exclusives and have items that are first to market. As there is a shift into non sporting good recreation (i.e. video gaming) DKS needs to aim more focus onto the younger demographic and tailor their assortments to each market they are in. The analogy would be having a large lacrosse section in the north east while doing the same with fishing and hunting in the south and south west.

- DKS is financially healthy as they are paying down their debt from acquisitions and improving their operating margins.