Bass Pro Shops

Primary Problems/Decisions to be made:

Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going to have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand.

II. SWOT Analysis:

Strengths:

1. Brand image:

a. Identification with consumer

-Store brand name enables product to be accepted and adopted more easily by consumers because of brand recognition

2 Selective Distribution:

a. Bass Pro is able to expand the product, name, and experience to a larger customer base without cannibalization of their company by setting a radius limit on how close their stores are built.

b. They meet the needs of their target market by building their stores in closer proximity.

3. Unique Store Image:

a. A distinctive environment creates an attraction that draws in thousands of diverse customers

b. Bass Pros environment differentiates itself by offering a one-of-a-kind experience due to their outdoor environment, and offering hands-on product trials so the costumer can experience the product before they purchase it.

4. Customer service:

a. Expertise in their product line:

-Employees are required to show proper use and maintenance of products.

-3 years of retail service experience is required before consideration of employment.

b. Customer convenience:

-Customers are able to fill many needs because Bass Pro offers thousands of products under one roof.

- Internet and catalog shopping offers services for consumers out of the comfort of their own homes

Weaknesses:

1. Managing Multiple Stores:

a. New management could create new potential problems:

- Problems will occur much more frequently with new stores due to lack of experience throughout the employment chain.

b. Staying consistent with other stores objectives:

- Being a chain, customers expect to have the same experience Bass Pro prides its name on. If managers do not uphold company standards from store to store, then one bad experience could lead to a negative image for Bass Pro Shops.

c. Higher payroll could hurt financially:

-A much higher overhead could lead to losses at the beginning because they have to hire many new employees with each opening of a new store: therefore, this could affect the consumer by increased prices on products, resulting in a price war that Bass Pro will loose.

d. Distribution:

-The more stores Bass Pro opens up, the more problems they will face with distribution. They will need to find an efficient, fast, and easy way to distribute their products to the stores.

2. Using Public Money for Expansion:

a. By using the publicsЂ™ tax dollars, Bass pro promotes that all tax payers are in favor of the company, which is not the case.

--People who are not in favor of using their tax dollars could hold a negative image on Bass Pro, therefore effecting brand image

3. Cannibalization:

a. Internet and catalog sales:

- By expanding to more geographical areas, Bass Pro is reaching more customers that are able to visit more store fronts which in return will decrease internet and catalog sales.

b. Visitation could decrease at the main store in Missouri:

- If customer traffic decreases at the Missouri store because of the expansion of smaller ones, sales will be affected, but the brand image is at risk because customers will opt to shop at closer locations, therefore, miss out on the unique experience Bass Pro has built their reputation on.

Opportunities:

1. Expand into new outdoor markets:

a. Expanding product lines such as snow skiing equipment and mountain climbing will benefit Bass Pro by opening doors to a new target market.

b. Bass Pro can capitalize short term by increasing sales, while increasing their customer base long term.

- Bass Pros sales are at a steady growth rate. By