Essay on Elan and the Competition Boat Industry

Words: 6462
Pages: 26

Case Study:

Élan and the Competition Ski Boat Industry

Robert Visser, 5002930146

Punnapa K. Pusayanonda, 4702641038

Patumporn Srikrisanapol, 4702640642

Thammasat University
Case Study, Strategic Management Fall 07
Group 5
Prof. James P. Fitzpatrick
Deadline: 19. September 2007

1. Company Overview 3
2. SWOT Analysis 4
2.1 Strength 4
2.2 Weakness 4
2.3 Threat 5
2.4 Opportunity 6
3. Situation Analysis 8
3.1 Financial Analysis 8
3.2 Marketing Analysis 9
3.3 Management Critique 11
3.4 Distinctive Competencies 12
3.5 Sustainable Competitive Advantage 12
4. Problems 13
5. Problem Statement 17
5.1 Rationale 17
6. Alternatives 18
7. Recommendations 21
7.1 First Recommendation 22
7.2 Second
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In conclusion, the one who is responsible for financial statements might not be competent enough for the job position because there are quite a lot of mistakes in the figures and the overall figures seem to be contradictory with the overall goal and strategy of Elan. So the reliability of the information given by the projected financial statements is questionable.
There are only two key people. And since Ben is the only one who has the special knowledge of the waterskiing market, there may arise some problems when Jay manages the business, negotiates with vendors and makes critical decisions for the sake of the firm.
Ben and Jay plan to bypass boat retailers and sell directly to the end user. With this it has not only a limited channel for distribution but it also solely depends on its direct sales and its own sales force.

2.3 Threat
The periods of economic downturn will affect the boating industry as it is considered to be a luxury product. This is because people feel the uncertainty in economic, so they tend to reserve the money to spend in more important areas, like home improvements, education, or even potential unemployment expense. Moreover, it can be severe to the point that income-constrained households opt out of recreational boating and sell their boat, thus used boats will flood the market and put more pressure on new and used boat prices and the