- Firewire Surfboards - Case Study Example

Firewire Surfboards Summary Firewire Surfboards is a company launched in the year 2005, by friends who shared a passion for not only surfing but taking this exhilarating game to an advanced level. The friends realized that the only way they could change surfing was to create surfboards that incorporate cutting edge technology, thus enticing all surfers, professional and amateur alike. The principal aspects that the young entrepreneurs took into consideration, while designing their novel surfboards include strength, flexibility and weight.

Unlike the traditional surfboards, Firewire boards are stronger, more flexible and lighter than traditional boards. Further, the Company opted to manufacture custom made boards, instead of just producing boards that its competitors avail to the market. To gain additional competitive advantage, Firewire Surfboards moved its production activities to Asia, where it could sustain production without compromising quality. Review/Analysis of the Case Answer to question #1 There are two principal Firewire’s competitors namely; Channel Islands and Lost Surfboards.

However, the stronger of the two, and Firewire’s greatest rival is Channel Islands’. This Company is considered to be the market leader in surfboard production. The level of rivalry is also evident from the fact that, the custom board price for both companies is almost the same, ranging between $650 and $675. The only distinction between the two lies in flexibility and manoeuvring capacity of Firewire boards. Channel Islands is able to retain its market share by upholding tradition and the fact that it engaged in production of custom made boards, long before Firewire did (Longnecker, Petty, Palich, & Moore, 2010).

Answer to question #2 Firewire’s entrepreneurial team should have taken into consideration several crucial factors. For instance, the team should have recognized the fact that most surfers prefer to get distinctive boards. This would have prevented Firewire from incurring unnecessary expenses, manufacturing ordinary sized board, available off any sports rack. Additionally, the young company should have critically analyzed the industry’s size, growth pace, basic trends, as well as the principal players (Longnecker et al., 2010). Acquiring this information prior to commencement would have played a significant role, in ensuring that Firewire dealt effectively with competition.

For instance, they would have been aware that local production would be expensive owing to the extra materials required. For this reason, the team could have had measures to counter the high cost, sustain profitability and gain competition over well established companies, even before starting operations. The Firewire team should also have examined the potential market extensively, since this would have ensured production was in synch with customers’ preferences from the very beginning. (Longnecker et al., 2010). Answer to question #3 Firewire’s core competence lies in their innovative surfboard materials as well as their distinctive design.

While competitors produce polyurethane foam surf boards, Firewire utilizes novel materials, like expanded polystyrene and aerospace coating for light weight and durability respectively. Additionally, Firewire’s boards are 70% stronger than its competitors’ boards since it uses “green” and readily available materials to add strength and stability to their design. The Company’s strategy is, therefore, sustainable especially given the transfer of production activities to Asia where labour is cheaper.

Firewire’s competence is also sustainable since avid surfers are gradually changing and taking the sport to an advanced level. Answer to question #4 SWOT analysis Strengths Firewire has an innovative approach towards production, since it utilizes stronger, lighter, and more flexible materials in comparison to its competitors. The Company has created a distinctive style, even envied by its competitor, Lost Surfboards, an aspect that could propel this young company to great heights. The capacity to manufacture custom designed surf boards also places Firewire at an advantage.

Weaknesses The Company does not have comprehensive marketing strategies in place. This inhibits its capacity to take aggressive promotion strategies that would convert conservative surfers. Firewire is not yet fully established, making it resort to manufacturing boards for rivals. This holds the Company back from building its brand recognition. Opportunities The Company carries out its manufacturing activities in a relatively cheaper environment, compared to its competitors. This gives it an opportunity to manufacture high tech boards, while still operating profitably.

Several professional surfers have won major titles, while using Firewire boards. This is likely to give the Company a lot of publicity thus enticing more customers. Threats The company faces stiff competition from well established companies like Channel Islands and Lost Surfboards. Answer to question #5 The Company utilizes the western management style, which entails creating a positive work place for all workers. However, design, R & D, and product testing all takes place in San Diego and Australia.

While this is convenient and profitable, it could even be cheaper and more lucrative if all activities got centralized. Answer to question #6 The principal challenge associated with product customization would be attempting to meet each customer’s preferences. This may result in backlogging of orders, an aspect that may disappoint customers making them shift their loyalty to the company’s rivals (Kelvind, 2012). Answer to question #7 Firewire Surfboards should continue with its research and development efforts, in order to sustain its operations, by utilizing novel materials to foster innovativeness as well as cost effectiveness.

The company should also utilize aggressive promotion techniques, so as to increase product awareness and popularity among surfers. While still producing custom made boards, the company should also increase production of other types of boards. This will ensure that they spread out the risk rather than specializing on the custom line. The strategy will also enable the company to entice new surfers (Kelvind, 2012). References Longenecker, J., Petty? J., Palich, L., & Moore, C. (2009). Small Business Management: Launching and Growing Entrepreneurial Ventures (15th Ed).

Nashville, Tennessee: South-Western College Pub. Kelvind, R. (2012).Firewire Surfboards: South West beaches. Retrieved 31 March, 2013 from http://articles.pubarticles.com/firewire-surfboards-south-west-beaches-1323699559,588808.html