Elan and the competition in the ski boat industry

Essay by senor79 April 2004

download word file, 8 pages 3.9

Question 1.

What are the chief economic characteristics of the boating industry?


1.The major characteristic of the boat industry is the overall economy.

2.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.

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

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

5.Distribution is very small; boat owners represent such a minute number of the total population of the country.

6.Product characteristics:

1.Ski boat/ competition.

2.Wakeboard boats, and

3.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.

Question 2

What competitive forces are currently at the work in this industry? Construct a five 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. There is always innovations in...