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- QUESTION
Too often, entrepreneurs brimming with optimism and enthusiasm launch businesses destined for failure because their founders never stop to define a workable strategy that sets them apart from their competition." (Scarborough & Cornwall, 2015, p. 106).
With this assignment, you have the opportunity to take your creative ideas to the next step and begin to develop a strategy that will form the foundation for a successful business.
Write a three to four (3-4) page paper in which you:
Develop a (MY SMALL BUSINESS WILL BE AN ATHLETIC SPORTS TRAINING FACILITY FOR ALL SPORTS), THE name for the company IS POWELL'S SPORTS DEVELOPMENT.
Identify its key competitors and summarize the strengths and weaknesses of one of the competitors.
Prepare a mission statement that encompasses the purpose of the business and considers its target market.
Identify the ownership form for this business, taking into consideration tax implications, liability exposure, managerial ability, and cost of formation.
Include at least two (2) references outside the textbook.
| Subject | Business | Pages | 3 | Style | APA |
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Answer
The Sporting industry's evolution continues to attract significant investor interest, with current estimates valuing the Industry at more than $71billion. The Industry's estimated revenue growth, especially in the developed world, presents significant opportunities for startup investment. Startups continue to emerge in the Industry, but they fail to establish intense market penetration due to a lack of adequate market analysis strategies. Although the Industry offers relatively low-resistance to new entrants in the market, startups can't gain sustainable growth, most of which exit the market in less than a year of operation. The ideation of Powell's Sports Development comes with a vivid knowledge of the market and potential challenges that are likely to deter sustainability in an extremely competitive industry. The startup aims to leverage on impeccable competitor analysis, location feasibility, and technology (Prajogo, 2016). Current practices in the global business world underscore the increasing role of technology in sustaining a competitive edge, an element Powell's Sports Development would want to harness.
Mission statement
Powell's Sports Development mission statement is anchored on innovation in the athletics sporting world. The company will aim to be the Industry's most progressive entity through the development of structures and frameworks that allow innovative possibilities for clients and the community. Powell's Sports Development recognizes that current industry players put limited emphasis on leading innovations at the community level, aiming to use that gap to attain long-term competitive advantage.
Competitor analysis
The United States boasts one of the best athletics training facilities in the world, implying that competition remains stiff in the Industry. Some of the primary industry players include OKC National High-Performance Center, Lakeshore in Alabama, Spire Institute, and Chula Vista Olympic Training Center. These training facilities offer significant competition to startups, mainly because they have established a strong global brand in the Industry. Powell's Sports Development primarily aims to develop its first facility in Alabama, and that implies that it faces stiff competition from Lakeshore. Lakeshore sporting and training facilities have a strong clientele base attracting sports personality not just in the United States but also from across the globe.
Lakeshore in Alabama
Lakeshore sporting and training facility opened in 2001 primarily focuses on providing people with disabilities a place for recreation and training. The sporting complex defines a competitive edge niche in the sporting training industry, and some of its strengths include
- Possession of world-class fitness facilities covering 45 acres, heated pools, fieldhouse, and running tracks.
- The sporting complex is exceptionally adaptive to different types of sports.
- It actively contributes to the community in supporting people with disabilities.
- The sporting complex leverages extensive utilization of technology and innovation.
- It has a strong brand in training people with disabilities and attracts customers from across the world.
- It is the home of the USA Wheelchair rugby team and acts as the official US Olympic and Paralympic training facility.
Weaknesses
Although Lakeshore training center provides world-class services in sports training, its weaknesses lie in its specializing in more one disability training. The Sporting complex trains Paralympics besides the fact that it attracts high-end customers. This implies that the cost of training to average customers remains high. At the same time, it is also apparent that the training facility remains reserved for the national Paralympics teams, weaknesses Powell's Sports Development aims to leverage upon.
Ownership form
Powell's Sports Development seeks to use the sole proprietorship ownership model owing to the fact that it offers significant advantages to startups. In a sole proprietorship, the model development recognizes that the firm will establish the business with no separate business entities, implying the inexistence of distinction between the business owner's personal and professional assets and liabilities. In essence, the use of the sole proprietorship aspect will allow the limitation of risks besides making it easier and simple to start operations. Since the business is a trial-based approach to entering the market, it reduces the chances of additional tax liabilities coupled with the fact that it allows sole control of business profit. The choice of single proprietorship ownership model in this business further recognizes that it will enhance effective management, especially in decision-making processes (Segal & Choi, 2016). The growth of the business will rely on taking risks and making prompt decisions, elements that cannot be achieved with other forms of ownership. It will require minimal reporting, simplified taxing, and less expensive business organization.
References
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Prajogo, D. I. (2016). The strategic fit between innovation strategies and the business environment in delivering business performance. International journal of production Economics, 171, 241-249. Segal, S. P., & Choi, J. S. (2016). Ownership form and quality of care in sheltered care facilities: Chain-affiliated business vs. sole proprietorship. Adult Residential Care, 10(1), 28-37.
Appendix
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