SWOT Analysis:

External Market Analysis to Identify Opportunities and

Threats for Indoor Sports Futsal

Submitted to:
Rojan Baniya

Submitted by:
Shuvam Dotel
Sujit Shrestha
Teresa Bista
Shabnam Maharjan
Aditya Bikram Karki

Sports play a huge part in human life, be it in form of entertainment or physical health. In context
of Nepal due to the massive urbanization and people migrating to cities, there is lack of open
spaces or play grounds. Due to which there is a high potential for indoor sports that are sprouting
up in the Valley and around the major cities in Nepal. But similarly there are much threats to the
indoor sports business. There are different environmental factors that has impact on business and
its profitability. Some of the external factors have been analyzed to assess their impact on Indoor
Sports - Futsal are as follows:

1. Demography:
Opportunities:
a. According to the Nepal Demographics Profile 2014, there are 54.2% percentage of
people aged below 24. It is a natural phenomenon that young people are interested and
involved in sports. Due to this reason, there is a huge urban population of youth who are
engaged in sports activities these days.

b. When we look at Kathmandu Valley we can see large number of schools and these
schools do not have open space or even a table tennis board. So the Indoor Sports
business can cater to these schools for their business.

Threats:
a. A large part of the population leave in poverty and there is huge lower middle class who
cannot afford luxury.

2. Price:
Opportunities:
a. If you are the only futsal arena in your area, then you will have the luury to charge higher
prices.
b. You can charge premium price with a added benefit to differentiate yourself from other
Indoor sports.
Threats:
a. Price sensitive customers: Due to the Futsal or Indoor cricket going population mainly
comprise of college students, they are very sensitive to price increase and may switch
between competing futsals who offer discounts.

3. Competition:
Opportunities: There may not be opportunities from competition.
Threats:
a. Easy entry: There is threat of competitors in the business related to futsal and cricket
games. There are number of futsal arenas that are mushrooming in the Capital. Focusing
on the growing interest of the youths towards indoor games like futsal and cricket, many
futsal arenas are now being operated in the valley. Currently, Kathmandu has more than
10 such arenas and by the look of things, all of them are functioning well beyond the
owner's expectations.

4. Technology:
Opportunities:

Threats:
5. Macroeconomy

Opportunities:

a. Increase in GDP: Nepal with the total population of 28.12 million and growth rate of
1.82% per annum have been contributing 5.48% in total GDP of the country. With the
increase in total GDP of the country, the living standard of the people within the country
are also increasing. Now the people of the country are able to spend lots of their income
in the luxurious item in comparison to the old days. Likewise the people are also willing
to spend their income towards the indoor and outdoor games. So the increase in the GDP
along with the increase in population growth rate can be one of the opportunities.

Threats:

6. Regulation:
Opportunities:
a. As Indoor businesses are not regulated they can charge prices according to their own
wishes. And you can save from any additional taxes that government might have levied
because of such regulations.
Threats:
a. Lack of regulation: Due to the lack of regulating body for this business there is no price
stability. Price of futsal varies according to location, time and infrastructures. Generally

pricing can be minimum 1200 Nepali rupees to maximum 2500 Nepali rupees per hour.
So lack of regulation can be one of the greatest threat in this business as competitors may
attract the players by charging lower prices.

7. Trends:
Opportunities:
1. Growing interest of youths towards futsal and cricket: The population age mix
of Nepal consists of mostly young people. The interest of youths towards the
futsal and cricket is increasing tremendously. With the rising interest of youths
towards football, the futsal trend is incredibly attracting everyone in Nepal. It is
definitely a win-win situation for both football lovers in town and businessmen
eager to cash in on this business.
Threats:
8. Suppliers:
Opportunities:
Threats:
9. Potential Partners:
Opportunities:
a. Increasing number of corporate partners for sponsorship and event participation:
Different types of Indoor sports events are being organized targeted to Corporate,
Colleges and even general public. These types of events are being sponsored by
Corporate houses. Different event companies also partner with Indoor sports like futsal
and cricket arenas to conduct these type of events.

Threats:

10. Substitutes
Opportunities
Threats
a. High Substitute products: There are many substitutes in place of Indoor sports like
Movie theatres, Snooker and Pool houses, Swimming pools, Video Game centers that can
attract the same futsal going crowds.

11. Others factors:

Threats:
a. Lease duration and cost: Most of the Indoor sports facilities are operated in leased
spaces and the lease duration is short from 5 to 10 years. And the lease cost is also high.
And after the lease duration finishes the land owners ask for high increase in rent.

b. Lack of outdoor sports: Due to massive urbanization and people migrating to cities,
there is lack of open spaces or playgrounds for outdoor sports like football and cricket. So
there is a high potential for indoor sports.
b. No suitable cricket ground for practicing:

Reference Link: https://anilblon.wordpress.com/2015/08/04/futsal-in-nepal/

Opportunities:
Growing interest of youths towards futsal and cricket.
Increasing number of advertising agency for sponsorship for such activities
lack of outdoor sports. (open space)
low pay back period.
No suitable cricket ground for practicing
Growing Income
new way of exercising (new)[edit garum hai yo chai]

Threats:
No barrier to entry
Futsal arenas mushrooming in the Capital (Kathmandu has more than 10 such
arenas)
High competition
Lack of regulation
Other organization with better facilities
Price sensitive customers
High Substitute products

lease duration and cost