Dick's Sporting Goods doesn't invest in vertical integration stategies like most companies do. Since they are a retail giant, their strategies are a little different. They have chosen a route in which they acquired the rights to some of their top brands and have vertically integrated those brands into their retail strategies. Top-Flite Golf clubs and apparel are one of those brands. They now have more control over the manufacturing and output of these units.
You could also look at some of their private lables and private brands that fall under DSG. This is another form of vertical integration that allows the company to drive efficiencies into their stores and increase profit margins.
A future strategy could be for DSG to bring in their own company employed installers for their fitness equipment and outdoor sports equipment. Today, they use outside contractors for these in-home installations. This would allow them to lower the costs to the customer and provide a superior service as well. It would also keep all the control of the sale in-house, thus creating more efficiencies.
Dick's will need to continue to look for ways to take advantage of future vertical integration opportunites to stay ahead of it's "creeping" competitors.
Happy Halloween!!
Rick will give weekly updates on one of the more community friendly companies in America.
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