Brief Introduction & Key Issues
Cabela’s is a privately held retailer that caters to outdoor enthusiasts by stocking various products for hunting, fishing, camping, and other similar pastimes. The company has come a long way since its 1961 beginnings in Chappell, Nebraska, and is now a significant player in the U.S. direct mail and e-commerce markets. As a leading sporting goods retailer, Cabela’s dominates the market with its 70+ brick-and-mortar locations across the United States, Canada, and Europe and its extensive online offerings.
Cabela’s faces many challenges, but the most important ones are staying profitable in an increasingly competitive market, providing excellent customer service, and keeping up with the latest trends in outdoor recreation. Furthermore, Cabela’s has been called out for selling items crafted from animal materials like fur and leather. Some of the company’s clients have ethical reservations about baiting and other questionable hunting techniques, so the business has taken heat for that. Likewise, Cabela’s must adapt to a dynamic outdoor recreation industry.
Cabela’s is having trouble in the retail market of today, which is very competitive. To compete with traditional retailers, it must get past a number of problems, such as the fact that many people shop online and the need to build brand awareness. In the same way, Cabela’s is trying to make money off the growing popularity of outdoor activities by offering a wide range of products and services to its customers.
Cabela’s has significant challenges in overcoming these constraints from its e-commerce rivals. Many of the products and services offered by online retailers are cheaper than those offered by Cabela’s. As a result, Cabela’s needs help to keep up with the competition and preserve its market share (Cabela’s, 2023). Cabela’s, which does not participate in the rapidly expanding online retail industry, has also failed to benefit from the e-commerce boom.
Cabela’s also needs more brand recognition. Although it is well-established in the outdoor recreation industry, it has a different level of name recognition than some of its rivals. This is partly because it caters to a tiny audience by targeting specialist sectors like hunting and fishing. As a last point, Cabela’s has to set itself out from more conventional stores. Cabela’s must differentiate itself from the competition by providing its consumers with an exceptional shopping experience. One way to achieve this is to provide niche offerings, such as outdoor-themed workshops and events, or to emphasize superior customer service.
List of Corporate Products
Cabela’s provides everything a consumer may want or need for their watercraft, whether it is a boat, engine, or accessory. Cabela’s has everything from tents and fishing poles to games and toys for kids. Their selection covers the gamut from casual clothes to athletic gear. Any customer needing outdoor footwear may find what they are looking for at Cabela’s. Whether shopping for boots or sandals, Cabela’s has the best assortment.
Analysis
External analysis
General Macro Environment
Cabela’s, like many companies, is affected by the global economy. The corporation’s success is determined by global economic circumstances and economic conditions in the nations and areas in which it works. GDP growth, inflation, interest rates, and consumer confidence are all economic factors that influence Cabela’s sales and earnings (Eierle et al., 2021). In order to adapt its strategy in response to macroeconomic developments, the corporation must be aware of them. Political stability and the availability of rules beneficial to the company’s operations are critical to its success. Furthermore, the corporation must be aware of possible changes in the political climate that might affect its operations, such as changes in tax policy or trade agreements.
Cabela’s must also analyze how social and cultural trends affect company success. Social media has become a potent tool for businesses to communicate with consumers and new customers. Cabela must understand how to use this medium to optimize its reach effectively (Eierle et al., 2021). Furthermore, the corporation must observe cultural trends to identify how best to position its goods and services in the market (Cabela, 2023). Finally, technological advancements will affect Cabela’s performance. The corporation must stay abreast of technological advances in the production, storage, and distribution of its goods and the technologies used to interact with consumers.
Porter’s Five Forces
The danger of new entrants is the first factor to consider. Cabela’s operates in a highly competitive business, with new entrants posing a considerable challenge. New entrants may provide more creative items or services, or they may be able to offer lower prices than Cabela’s. The corporation must stay attentive to prevent new entrants from getting a foothold in the market (Isabelle et al., 2020). Supplier negotiating power is the second variable to consider. Cabela’s uses a wide variety of suppliers for product production and distribution. Suppliers with substantial negotiating power may charge higher prices or demand better conditions.
The third factor to examine is buyer bargaining power. Cabela’s must recognize the purchasing power of its current and prospective consumers. Buyers with substantial negotiating power may demand lower prices or better conditions. In order to maximize earnings, the corporation must be aware of the strength of its customers. The danger of alternative goods is the fourth factor to consider. Cabela’s has to be mindful of prospective replacements for its goods and services (Isabelle et al., 2020). Customers may move to replacement items if they become accessible, resulting in a drop in sales and income. To be competitive, the firm must be aware of prospective replacements. Cabela’s operates in a highly competitive business, and the strength of these rivals will substantially influence the company’s performance.
Structure of the Company
Cabela’s organizational chart is hierarchical. The CEO is at the top of the chart, followed by the chief operating officer, chief financial officer, chief strategy officer, chief merchandising officer, chief digital officer, and chief human resources officer (Cabela’s, 2023). Following these roles are several additional executive and operational posts that report to each executive position. This is followed by jobs at the regional and retail levels, which report to the executive posts. Customer service and sales are located at the bottom of the organizational hierarchy and report to the executive roles. Cabela’s can successfully manage its operations and guarantee that all departments of the organization are working together to reach the company’s objectives thanks to this structure.
Examination of the Firm’s Business Level Strategy
The company’s business strategy is built on giving clients a one-of-a-kind shopping experience centered on its “World’s Foremost Outfitter” brand. This approach is based on offering clients a one-stop shopping location for all of their outdoor requirements. Cabela’s has made significant investments in its in-store experience, transforming it into a destination for consumers to come and enjoy the outdoors with the aid of experienced employees, engaging exhibits, and a vast assortment of gear. Cabela’s has also invested in its online presence, providing consumers with a wide range of goods and services and simple delivery alternatives. In addition, the firm offers a robust loyalty program that rewards clients for their purchases and promotes repeat business.
Examination of the Firm’s Corporate Level Strategy
Cabela’s business strategy consists of three major components: a focus on client pleasure, a dedication to innovation, and a diversification plan. Cabela’s has spent substantially on its e-commerce infrastructure, customer service efforts, and brick-and-mortar locations to assure client happiness. The corporation has also committed to being technologically advanced and using digital capabilities to improve consumer experiences. Cabela’s has also diversified to broaden its geographic reach and client base. To provide clients with a wide variety of outdoor recreation goods and services, the firm has bought various companies in similar sectors, such as Bass Pro Shops and World’s Foremost Bank.
Strategic Recommendations and Justification
Increase Brand Awareness: Cabela’s should prioritize brand recognition. This is possible by using digital and social media channels to reach a larger audience. In order to boost its awareness, Cabela’s should concentrate on developing ties with outdoor recreation influencers and content producers. Cabela’s will be able to reach a more extensive client base and compete with other shops because of this. Focus on Customer Service: To separate itself from typical stores, Cabela’s should prioritize delivering excellent customer service. This is an example of offering individualized shopping experiences, specialized services such as outdoor-focused training or events, and leveraging consumer input to make appropriate modifications to its goods and services.
Take advantage of the Expanding Online Shopping Trend: Cabela’s could take advantage of the growing online shopping trend by providing online deals. This would enable Cabela’s to compete more effectively with internet shops and grow its consumer base (Eierle et al., 2021). Cabela’s should also work on developing a solid online presence via digital and social media channels. Cabela’s will be able to reach a broader audience and have a better brand presence.
Firm’s Partnerships and International Presence
Cabela’s is competitive due to various collaborations and a worldwide presence. Cabela’s has strategic agreements with Bass Pro Shops, Outdoor World, and other outdoor stores to provide consumers with a diverse range of goods and services (Eierle et al., 2021). Cabela’s also has an international presence in Canada and just built a location in Australia. Cabela’s foreign presence enables the company to access a more extensive client base, provide unique items to international customers, and enhance its customer support skills.
Gaps in Strategy Related to an International Strategy
Cabela’s overall approach to the overseas market may need to be clarified. Cabela’s current foreign strategy is increasing online sales through its website and collaborating with third-party distributors. While this may work in certain areas, it may not work as well in others where consumers prefer to purchase in-store or have access to a more fantastic range of items. Furthermore, Cabela’s may use something other than local marketing tactics, such as print or television advertising, to reach its target demographic in overseas regions. Finally, Cabela’s may need to utilize the potential for foreign relationships with local companies or groups to improve its brand and expand its reach.
Recommendations for the Firm’s Financial Standing in the Industry
Given the company’s recent financial success, Cabela’s should maintain its emphasis on its retail store operations, supply chain management, and digital marketing and promotion. The business should also look into entering adjacent or untapped areas and expanding its product line. The corporation can expand its client base and get a larger market share. For the same reason, Cabela’s should prioritize developing mutually beneficial collaborations with complementary businesses. Finally, to remain competitive, Cabela’s has to invest in cutting-edge technology and use data-driven analytics to learn more about its customers. Cabela’s can guarantee its future development and prosperity by anticipating changes in the market.
References
Eierle, B., Hartlieb, S., Hay, D. C., Niemi, L., & Ojala, H. (2021). External factors and the pricing of Audit Services: A systematic review of the archival literature using a pestle analysis. Auditing: A Journal of Practice & Theory, 41(3), 95–119. Web.
Cabela’s, I. (2023). Cabela’s official website – hunting, fishing, camping. Cabelas. Web.
Isabelle, D., Horak, K., McKinnon, S., & Palumbo, C. (2020). Is Porter’s five forces framework still relevant? A study of the capital/labour intensity continuum via mining and IT industries. Technology Innovation Management Review, 10(6), 28–41. Web.