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Finish Line Case Study

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Finish Line Case Study
Makayla Richer
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Finish Line Case Study

Finish Line is a good example of a business that understands how to operate throughout the year. They know the importance of having a mix of products. The reason for this is that at certain times in the year some products sell more than others due to changing demands. In summer, for instance, sandals and sunglasses sell more and in winter, boots and sweaters sell more. If a business lacks a mix of products they will suffer losses of profit during these seasonal times and the business may be unable to run continuously. Although Finish Line’s main product choice is shoes, they sell sweatshirts, hats, and other items as well when appropriate. “Shoes generally make up about 70 percent of the business. This varies, though, according to the time of the year. In August, 85 percent of the business might be Fall back-to-school shoes. This drops to 50 percent in December, when it is easier to buy a sweatshirt or baseball cap as a gift” (Case Study Finish Line).
Knowing what to buy and when is crucial to running a good business. Unfortunately, there is no surefire way of knowing which products will sell and which won’t, so there is more risk for the buyer than the manufacturer. “The buyer is faced with the difficult problem of anticipating what will be hot in six to twelve months into the future” (Case Study Finish Line). The consumers mind is extremely unpredictable. In the blink of an eye, people’s opinions on products change, and if it is for the worse then a business may lose a lot of money on inventory that doesn’t sell.
Having a diversity of products can prove challenging for inventory management. One way businesses fight the complexity of large inventory is by arranging it based on product type and styles.

1. Differences between stores. A particular store might be an A store for

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