What are the chief economic characteristics of the boating industry? The major characteristic of the boat industry is the overall economy. When the economy is booming then the sales of boats will increase. These types of boats are considered a luxury item and when the economy is failing, so are the sales. The market size is relatively small with only 17 major skis and recreational washboard boat manufactures nation wide, including Australia. Rivalry among the boat manufacturers is spread out from the west coast to the east coast.
Distribution is very small; boat owners represent such a minute number of the total population of the country. 6. Product characteristics: Ski boat/ competition. Washboard boats, and Recreational boats. ;Growth opportunities The growth opportunities of the boat industry are not as large as they use to be. According to the case, the growth in the number of recreational boats in use has stalled over the past ten years, and the established number of participants has recently declined. The geographic area in which the products are purchased is another factor that affects the sales.
There will obviously not be a demand for these boats in a cold state like Alaska. The areas that have lakes, and open waters will have more of a demand for these recreational boats, therefore growth opportunities in these areas are greater. Elan and the competition in the ski boat industry By sensors forces model to support your answer. Industry competition stage The competition boat industry is still growing but not rapidly. It is not yet declining except in economic hard times for example. The industry is in the growth and the maturity stage of the industry.
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Key driving forces in the industry and factors causing changes in the market place ;The product innovations can be a key driving force because it can widen the degree of product differentiation among the rival sellers. ;The advance in technology can make it possible to produce new and better products learning or experience curve effects. The changes in long-tern industry growth is affecting the industry because it heightens the competitive pressures, thus creating a battle for more market share. This may force some companies to close their doors. The shifts in buyer demographics can alter the competition by forcing adjustments in the customer service, or bringing different sales and promotion approaches into play. ;New marketing innovations can affect the buyer's interest, increase product differentiation, and even lower unit costs. ;These innovations can cause the rivals to come up with a new strategy. There is a growing buying preference for differentiated products. ;Buyers are looking for new features, style changes, and more options. This can change the industry because the rivals are always looking to out differentiate the other. The consumers want more companies to offer warranties and they are starting to and this a major driving force. Question 4 Which companies are in the strongest position in the industry? The weakest? What are the competitive advantages of each of the four competitors discussed in the case? What strategic move do you predict each will make next? Companies with strongest position in the industry The companies in the strongest position in the industry are Master Craft, Malibu Boats, and Correct Craft. These have been the leaders in the industry.
Master Craft is attributed to its product standards. Master Craft has remained one of the front-runners in the competition inboards. Correct Craft offered the 'bumper to bumper' warranty, this was a first in the industry. Malibu is known for their innovation and quality. Strategic move at a lower cost. This can cause changes in the capital requirements, and even the earning or experience curve effects. New marketing innovations can affect the buyer's interest, increase product differentiation, and even lower unit costs.
These innovations can cause the rivals to come up with a new strategy. There is a growing buying preference for differentiated products. These buyers are looking for new features, style changes, and more options. This can change the industry because the rivals are always looking to out differentiate the other. The consumers want more companies to offer warranties and they are starting to and this a major driving force. What are the key successes factors in the industry? What will take for a manufacturer to be successful in this industry?
Key successes factors in the industry and what will take for a manufacturer to be successful in this industry ;Product Quality: To maintain price and quality for being successful in attracting general customers. Quality and brand reputation are very important factors in able achieve customers who are experienced skiers. ;Customer service: The third success factor is the ability to provide consistent quality to customer's specifications. Quality products equal customer loyalty and customer loyalty means profits and the funds to be able to allocate to methods.
What factors make the industry attractive or unattractive to a ski boat manufacturer? Attractive or Unattractive Market The competition boat industry is an unattractive market. ;The rivalry among the top sellers is strong. ;Companies are also looking to be more innovative than the other. ; The capital that is required to start a boat company is the industry's largest entry barrier. ;The three strongest competitors have a major advantage in gaining greater arraigning power over suppliers. How good is Г?Lana strategy so far? What resource strengths and weakness does the company have?
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