This report will analyse the external environment of sports retailing market in the UK and evaluate the most important factors affecting the industry and the organisation. For analysis, PEST analysis and Porter’s 5 Forces Model will be used. Second section of this report covers the analysis of internal environment of Sports Direct using the VRIN framework and constructing the value chain that highlights company’s competences and resources that are responsible for its successes. Sports Direct International Plc (Sports Direct) operates within sports, fitness, and fashion lifestyle and sports equipment markets. The company’s product lines include sports equipment, footwear, clothing and similar accessories. These products are marketed under different ownerships and other licensed brands. It operates its business functions across 19 countries in Europe, as well as Asia, the US and the UK. As of April 2017, Sports direct owns and operates a total of 830 stores in the UK. The company’s four segments are: UK Sports Retail, International Retail, Premium Lifestyle and Brands