Dick's Sporting Goods is in the sporting goods and retail industry. This would put them in a limited diversification, single business category according to the book. 95% or more of DSG's sales are that of sporting goods retail. While there is diversification of what field of sporting goods they sell, they are still considered a focused industry and would be nowhere close to that of a Berkshire-Hathaway.
Because DSG is so diversified in what sporting goods it sells it can capitalize on economies of scope within its product offerings. As touched on in the last chapter, DSG has integrated and acquired the rights to many name brands that are only sold at DSG locations. These agreements with other companies, such as Callaway and their Top-Flite line, saves DSG money by being able to purchase the items at an even lower manufacturing price than before, but also creates demand in the product for Callaway because it is only offered at DSG. This allows both sides to maintain higher profits. Dick's doesn't have to produce it, and Callaway doesn't have to sell it. This would fall under the shared activities section of Chapter 11.
DSG is now starting to diversify its stores, as they begin to open Field & Stream stores in the northeast to center solely around the outdoors.
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