Start Up SWOT Analysis and Strategy

Starting a Hockey Rink Business to Promote Local Hockey

To start a sports business one has to consider the market, problem solving steps, SWOT analysis, strategic thinking, and more. This case study examines the process of starting a hockey rink business to promote local hockey, with insights from entrepreneurship and sport management. It looks at the steps needed to start up a hockey rink, the challenges, and the potential benefits for the community.

The Case

The town of Newport lacks a dedicated facility for ice hockey. To address this need, entrepreneur Alex Park decides to start a hockey rink business, to fill the need for a venue for local hockey, grow youth development through the National Hockey League Youth Association (NHLYA), and help to build up a sense of community.

Problem Solving

The first step in starting the hockey rink is problem-solving (Entrepreneur, 2024). Alex identifies the lack of ice facilities as the main problem and begins to research potential solutions. He starts off by gauging community interest through surveys of players who must travel more than 25 miles to practice at the nearest rink. The positive response from the community confirms the demand for a local hockey rink.

SWOT Analysis

Alex conducted a SWOT analysis to understand the strengths, weaknesses, opportunities, and threats associated with the venture:

· Strengths: High community interest, potential partnerships with local schools and sports clubs, and affiliation with NHLYA for youth programs.

· Weaknesses: High initial capital investment, ongoing maintenance costs, and competition from other recreational activities.

· Opportunities: Interest in hockey, potential for hosting tournaments and events, and opportunities for community engagement and sponsorship.

· Threats: Economic downturns affecting disposable income, seasonal fluctuations in demand, and potential competition from other sports facilities.

Competitive Advantage

To gain a competitive advantage, Alex offered many services, including public skating sessions, youth hockey lessons and rec league, an adult beer league, figure skating lessons, and freestyle skate sessions. He affiliated with the NHLYA (2024) to make sure there would be high-quality coaching and development programs for young players which would excite and attract families and establish long-term interest in the rink.

Innovation

Innovation is important for the success of a hockey rink. Alex went with eco-friendly technology—solar panels and energy-efficient refrigeration systems—to reduce operating costs and gain subsidies from the state. He set up easy-to-use online booking and membership systems to streamline operations and create a user-friendly experience.

Devil\\\\\\\'s Advocate

Alex also wanted to address potential challenges, so he adopted the devil\\\\\\\'s advocate approach by critically examining his business plan. He questioned the sustainability of demand, the effectiveness of his marketing strategies (social media and word-of-mouth), as well as the feasibility of hitting high occupancy all year round. The approach helped him to refine his strategies by seeing vulnerabilities and he created some contingency planning, too (Hoye et al., 2018).