Business

Essay by PaperNerd ContributorUniversity, Master's November 2001

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SUMMARY In 1983, David Varilek came up with the concept for the Skisailer. Five years later, 1987, David received the awfull news about his worldwide sales of his Skisailer. The first year sales of the Skisailer had not succeeded in matching their set target. The future potential of David's invention was at stake. The first season the Skisailer had been on the market, seven hundred and eight were sold. Mistral, the company which invested in David's product had invested in over half a million dollars in their project regarding the Skisailer. It was being put into serious consideration that the Skisailer should be brought off the market, in the coming year. David immediately took action and asked a group of MBA students, which attended a school of management in Switzerland to study the market potential for Skisailer, so they could recommend to David and Mistral what would needed to be done to get their sales up.

The MDA students had completed phase one of their studies, they then presented Dave, 23 years old, with the results. Dave was to review the information and come up with an effective solution. (Kotler, 1999) BODY OF REPORT The Skisailer was a product thought up by David Varilek in 1983 in his garage. In 1984 a contract for development, manufacturing, and distribution was signed between David and Mistral. The Skisailer was a product designed for a sport known as skisailing. Skisailing was a combination of both downhill skiing and windsurfing, the Skisailer could be used on flat surfaces and on smooth slopes. David came up with an idea to invent a connection bar that he would set onto ordinary skis and at the same time allowed them to be directed with immense flexibility. David would then on the connection bar install a connecting bar...