Under the VRIO framework, the question of imitability and having a sustained competitive advantage came to mind when trying to find what separated DSG from the rest of the field.
Although I have touched on this area of the company before, it is worth reinforcing to show DSG's dominance over the past few years. DSG was labeled "best in breed" by the stock research powerhouse Morningstar. It was awarded this honorary title because of its focus on high-end athletic needs.
The article states…
"The company’s competitive advantage consists of its emphasis on high-performance products designed for serious athletes/enthusiasts, rather than cheaper goods for casual participants. Nevertheless, you can buy products at various skill and price levels.
But Dick’s focus on higher-quality, higher-price products makes it more profitable than its rivals. It also lessens the competition Dick’s faces from other sporting goods and general merchandise retailers who don’t share that emphasis."
The more profitable DSG becomes, the more of a competitive advantage is gains on its competitors, which are becoming fewer and fewer every year, thanks to consolidations and the online retailers stealing some of the profits. The only question is can they continue to keep their edge. Internet sales and online competition seem to be the only thing that could potentially slow them down, as discussed in my last article. I don't see an imitator becoming a threat to Dick's anytime in the near future.
http://www.newsmax.com/Companies/Dick-s-Sporting-Goods-DKS/2012/02/29/id/431009
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