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... The snowboard industry had been experiencing increase demand as a result the rivalry in the industry is highly competitive. ...
Overall, the rivalry in the snowboard industry is pretty high because the industry demand is growing and for some large companies there are exit barriers such as emotion attachments and capital investments. ... The main buyers for those snowboard companies are the retail stores for snowboards, winter resorts, and direct consumer purchases. ... Those supplies are commodities and able to obtain from a various sources, however, some companies are aimed to produce some highest quality such as Madd Snowboard which requires some high-price supplies which can be relatively harder to obtain. ... Overall, the bargain power of suppliers is relatively low in the industry because the supplies are commodities and snowboard companies are the ones who control the differential part- designs of the board. ... There is also some crossover between snowboard and skateboard that is structural similar. ... 6 percent of snowboard participants earned $35,000-$49,999, 20. ...
Technological factor – The technology also had affected the trend of the snowboard industry. ...
Demographic factors– The snowboard industry started with rebellious pierced, tattooed young males to emerging market of women and children 24-36 years of snowboarders was up by 270% in 1998 36-45 years old was up by 99% in 1998. Snowboard sport is extremely popular in Pacific and growing interest in New England areas. ...
INTERNAL ANALYSIS
Company Overview
In 1993, John Gilmour founded Madd Snowboards. He received initial funding from Michael Banker, the previous owner of Madd Mike’s, a sailboard and snowboard retail show that specialized in mail order. Madd Snowboards produces only premium performance snowboards, targeting the alpine market niche. Madd’s secondary target is an even smaller niche than the alpine segment, the boardercross segment. ... The first important source of competitive advantage for Madd snowboard is its human capital, which are the management teams who have extensive knowledge for the industry. John Gilmour had been in the snowboard industry since 1983. ... This give Madd Snowboard a competitive advantage over some other firms because its founder is well experienced in the industry.
Madd (1996) Ride (1996)
ROS 0. ... 186021023
Another competency for Madd Snowboard is its historical name brand established by Madd Mike’s. Madd Mike’s had evolved into one of the largest mail order houses of its kin the 1980s and 1990s. Madd Mike was well known in the snowboard industry because many snowboarders had bought their first boards through Madd Mike’s. This gives Madd Snowboard distinctive competency -brand loyalty in an industry that brand name is the one of the main determinations in purchase.
We can also indicate Madd’s competitive advantage through some financial ratios in comparison with a typical large snowboard.
Business Level Strategy
Madd Snowboard’s success is contributed by the differential value creation. Madd utilizes its product quality to differentiate itself from competitors. Madd Snowboard persuades a benefit strategy in which it provides its consumer highest quality in the industry especially to its market niche who individuals concern about quality of the board the most. Madd does its own board design and develops the primary molds and construction process used for its board in-house, then outsources production to other high quality lamination houses. ... Madd strived to maximize rider’s acceleration and performance through producing the highest quality boards. In 1998 production run, four out of five boards won industry awards – more than any other snowboard manufacturer. Madd Snowboard also has distinctive technology and innovations by its people in developing new designs to attract new customers.
Another way that Madd able to achieve its above average return is its pricing strategy. ... The retail price for Madd board is $260 and $400 if sold directly to the consumers. ... The segment that Madd Snowboard targets is the alpine segment, which consists of riders who are willing to pay the premium for a high quality board, that means the group is probably price inelastic and Madd Snowboard is able to charge the group a higher price for great profit margin.
Functional Level Strategy
Manufacturing – Madd snowboards are made of the best materials available. ... Madd subcontracts its manufacturing to an independent snowboard manufacturer, Lucio Longoni of Funky Snowboards, in Italy. Even with the best manufacturer, Glamour still want to insure the high-quality of the boards, which means Madd checks each board for any manufacturing oversights.
Approximate Word count = 3594
Approximate Pages = 14.4
(250 words per page double spaced)
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