Case Analysis: Elan and the Competition.

Essay by lccat18 November 2003

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Long Case Analysis: Elan and the Competition

I. Major economic characteristics of the Industry

A. The market size is relatively small with only 17 major ski and recreational wakeboard boat manufactures nation wide, including Australia.

B. Rivalry among the boat manufacturers is spread out from the west coast to the east coast.

C. Distribution is very small. Boat owners represent such a minute number of the total population of the country.

D. Product characteristics: Ski boats/competition, wakeboard boats, and recreational boats.

E. Organization: Private, Publicly traded.

F. Industry: Competition Ski and Wakeboard boats.

II. The industry's competitive 5 forces

A. Competition in the Industry is moderate with about 17 boat manufacturers. The only thing that separates them apart is the ability to offer lower prices, establish brand recognition, and differentiate their products.

B. Suppliers to the industry provide a moderate support to the boat manufacturers. Because there are 3 major suppliers of engines they do not pose such a large threat to the manufacturers.

This gives the boat manufacturers the choice to pick the appropriate engine.

C. Buyers of the product from the manufacturers play a strong part in the success of the companies. They are essential because they are the main channels for the consumer to review and ultimately buy.

D. Substitutes pose a weak threat to the industry. The only other alternatives are the solo, which allows one person to go skiing, and the cable rope that whips people around a track.

E. Threat of entry of new competitors is weak. It takes a lot of capital and networking to successfully build a profitable company in this industry.

III. The factors that are causing major long -term industry change:

A. Ability to differentiate ones product from another.

B. Changing the attitudes of the consumers to gain trust in...