It's really difficult to use product differerentiation as a competitve advantage with large retailers. Dick's Sporting Goods is no different, as it's products are very similar to their competitors. As I mentioned in a previous post, they can use their buying power and size to offer their customers a greater span of products. But, all in all those products aren't a lot different than what Sports Authority or some of the others can put in their stores.
That being said, I still believe Dick's has an advantage with product differentiation based on how they have differentiated themselves through community service. Dick has no competitors when it comes to what they do for their communities and youth sports. Their programs create a loyal customer base and also create a future customer base by the impact they have on the young kids who benefit from their generosity.
Check out the attached video to see just how they impact their local communities.
"Dick’s Sporting Goods: Sports Matter "
https://www.youtube.com/watch?v=LhzS5_stAvs
Rick will give weekly updates on one of the more community friendly companies in America.
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