Case study Gamashie Sports

Gamashie Sports is one of the Ghanas largest sports retailers, offering sports clothing, sporting equipment, games and fitness products. The company was founded by a group of retired footballers in 2004 in order to acquire one sporting goods shop in Bukuom; by 2006 the company had four stores and began a rapid expansion programme which saw it launched on the Ghana Stock Stock Exchange in 2012, by which time it had 120 stores. In 2012 Gamashie acquired Sunkwa limiteds Sports Division, its biggest competitor, thus becoming the Ghanas largest sports retailer with more than 250 stores. The company also operates 50 fitness centres around Ghana; these have been extremely successful, despite the fact that the retail stores had a somewhat rocky ride during the 2009 recession. In September 2013 the company launched its first MiFit gym in Takoradi, oil city. This was billed as the cheapest premium gym in Ghana, with members paying a one-off membership fee followed by a fee of GHc 250 a month. The gym was attached to the local Gamashie store, and accessed through it, so that members would pass by the goods on display. The company plans to open more of these in-store gyms as finances allow, but MiFit is an entirely separate brand from Gamashie Health Clubs there is no cross-selling and no management convergence between the clubs.

Gamashie Sports has an online retail division which was 99 per cent owned by the retired footballers, who have till date sold their shares. The company sponsors Gamashie FootballClub and Gamashie marathon: in each case the company logo appears on the clubs shirts and athletes attire.

The company does face some threats over the next decade. The French retailer Decathlon (a subsidiary of the giant Oxylane company) has entered the Ghanaian market and plans to expand from its current six stores in Ghanaian malls. The recession has also taken a toll at the companys July 2020shareholders meeting the board reported that sales were down 40 per cent on the previous year, with gross profit margins also down by 11 per cent due to a sell-off of old stock at cost price.

On the positive side, Gamashie can expect to gain from the increased interest in sport created by the 2021 All Africa Games, which are to be held in Ghana. As part of the All Africa games programme, the Ghana government plans to get 150,000 more people involved in sport between 2020 and 2021 a very positive factor for any sports retailer or gym operator.

Questions

1 What needs might Gamashies stakeholders have?

2 What objectives might be appropriate for Gamashie over the next five years?

3 What barriers to planning might the company encounter?

4 How might Gamashie assess the true competitive threats the company faces?

5 What type of planning would be most appropriate for Gamashie?