Professional Documents
Culture Documents
Q1.
What
are the industrys dominant features?
Market
Size and Growth: The skiboat industry is a very big industry
estimating sales of $25.6 billion in 2000, an increase of 15% from 1999,
the industry had face steady growth since it was emerged and the
position of this industry in life cycle lies in early maturity, because they
still have to be in state of mature.
Scope of Competitive Rivalry: There are number of rivals and
not everyone will buy skyboat. Whole seller plays an important role, they
sometimes educate buyers as well, buyer want innovative products, high
on technology and low on consumption.
up with differentiated products, new ideas and some firms have made
price their differentiated competency to attract more buyers.
Product Innovation: R & D and Product innovation is the most
major factor in this industry, upgraded equipment has been the core
competency in this industry. To survive in this industry you have to be
ready for technological challenges that come across your way.
Economies of Scale: In this industry Organizations with high volume
Craft being pioneer of the industry have significant edge over other
competitors because of their experience in the industry
HUF MUF
A
A
Neutral
MFA HFA
small
Ample
High
Restr
icted
5
5
Low
Low
Low
Insigni
ficant
Low
large
Low
comment
5
5
4
High
High
High
Signi
ficant
High
Exit Barriers
Exit Barriers
Factors
Specialized
Assets
Fixed Cost
of Exit
Strategic
interrelation
ship
Governmen
t Barriers
Hi
HA
Comments
LOW
Hi
Hi
MA
Low
Low
2
5
Low
Competitive Rivalry
Factors
Composition of
Competitors
Mkt. Growth
rate
Scope of
competition
Fixed storage
Cost
Capacity
Increase
Degree of
differentiation
Strategic Stake
HU
FA
Equal
Size
Slow
Global
High
MU
FA
Neu
tral
MFA HF
A
4
4
4
4
Unequ
al Size
High
Domes
tic
Low
Small
Large
Com
modit
y
High
Comment
High
Low
HUF
A
MUFA N
Hi
Hi
Lo
w
Hi
Commen
t
MFA HFA
4
4
Low
Low
High
Low
Power of Supplier
Factors
# of important
Suppliers
Switching cost
Availability of
substitutes
Threat of forward
integration
Importance of
Buyer industry to
suppliers profit
Quantity
purchased by the
industry of
suppliers
product
Suppliers product
an important
input to the
buyers business
HUF
A
MUFA
N MFA HFA
Few
High
low
High
comme
nt
4
4
Many
high
Low
Low
small
large
low
High
Highly
Import
ant
Less
impor
tant
Power Of Buyer
Factors
Number
of
Important
buyers
Threat of
Backward
integratio
n
Product
supplied
Switching
cost
% of
buyers
cost
Profit
earned by
buyer
Importanc
e to final
quality of
HUFA MUFA
MFA
HFA
Few
Comment
Many
High
Low
Commodi
ty
Specialt
y
low
High
Low
high
Low
High
High
1
low
Factors
Entry Barriers
Exit Barriers
Rivalry among
existing firms
Power of
buyers
Power of
Suppliers
Threat of
substitutes
Unfavorab Neutr
le
al
Favorable
4.5
3.75
4.15
3.5
3.3
4.25
Conclusion.
The Industry is highly favorable as,
a) There are high capital requirements, strong
b)
c)
d)
e)
Correct
Craft
Skier
Choice
Tige Boats
Centurion
Infinity
American
Skier (Elan)
Master Crafts
Malibu Boats
Low Prices
High Prices
Few Models
Many Models
Q5. What are the major Key success factors in the industry?
Product Innovation:
Correct craft became the innovator of tow-boats and Ski Nautique and enjoy the
second position for almost a decade.
Malibu boats over take Correct craft position by their consistent image of being
innovative.
As this is a luxury product, its expensive in fuel consumption and maintenance,
buyer needs low consumption and high on technology products.
EFI and V-drive engine is the latest innovation which gives speed boats one of
innovation that customer go for.
Price and Quality:
Price and Quality is also one of important factor that leads to success, in this
industry Malibu boats have managed to prove that.
Because there are very mechanics of skiboats and prices are very high, so
customer wants a quality product.
Many competitor competes on low prices and thus cutting edge of major
manufacturers
Competitive Profile
Strategic
Weight
Master Craft
Weighted
Malibu Boats
Factors Matrix
(rates)
Score
(rates)
Weighted
American
Weighted
Score
Skier Elan
Score
(rates)
Product
0.3
0.9
1.2
0.6
0.15
0.6
0.45
0.45
0.2
0.8
0.6
0.2
0.25
0.75
0.5
0.75
0.1
0.2
0.3
0.1
Innovation
Price &
Quality
Successful
product
positioning
Successful
promotional
programs
Ability of
customization
Total
3.25
3.05
2.1