ÃÂlan, formerly known as American Skier, was a small ailing company in an unattractive ski boat industry before two enthusiastic friends, Ben Favret, and Jay Blossman bought it. Since the 1990ÃÂs, ÃÂlan had become unfocused, poorly managed and undercapitalized before it filed for bankruptcy in 2001. Favret and Blossman hope to shed the bad reputation of American Skier in exchange for the vigor and enthusiasm of a young upstart company willing to go head to head with industry market leaders. However, in order to penetrate and succeed in a competitive industry with powerful market leaders, ÃÂlan will need more than Favret and BlossmanÃÂs positive aspirations. Fortunately, by purchasing ÃÂlan at a bargain-basement price, excessive debt was shed from the list of problems that previously ailed American Skier. Low debt and positive future sales will improve credit rating and thus increase capitalization. On the other hand, without the shield of debt, the potential for hostile takeover increases.
Correct Craft's company logo
English: Barefoot Skier
Moose cow and calf, Rocky Mountain National ParkThe fact that there are no public shares and only treasury stock will make it hard for competitors to acquire ÃÂlan through the purchase of stock (see appendix).
The Ski Boat Industry is still an unattractive, mature industry in a very competitive market with large barriers to entry and intense rivalry among the existing firms. The industry has large competition based on differentiation, innovation and brand loyalty. Capital expenditure is the largest barrier to entry in the Ski Boat Industry due to its large research and development costs. Shaping and the designing of a new boat mold can cost in excess of $400,000 per mold or $100,000 for an existing mold. Furthermore, many of these large companies such as MasterCraft, Malibu, and Correct Craft have well-established company names and excellent customer loyalty.
ÃÂlan is a small company in a mature industry dominated...