SWOT Analysis of Cima Mountaineering Inc - Case Study Example

The owners decided to adopt this change after they had carried out serious marketing research. They also thought that it was better for them to expand the line of products that they offer in their market segment. In round 1980’s the company completely stopped offering the western style boots and started concentrating on mountaineering and hiking boots. From then the business has experienced a higher growth and it became a market leader in this market segment.

At this time (1995), though the company was still generating adequate profit on the market they served, growth of the company had started to decline while the expenses spend on various fields such as marketing was increasing at a higher rate due to the competitions from the European companies.

The Cima Mountaineering Company has come up with effective strategies after undertaking market research in the market and made the following proposals: firsts the company will maintain its present market of mountaineering and hiking boots. Secondly, the management has decided to expand its market and introduce another line of casual boots called ‘Weekender boots”. This new line is very effective because it offers multipurpose boots, for example, it can serve the purpose of traditional boots and at the same time, it is so much appealing to both recreational and fashionable taste in the market (Byrne, S. & Oliver, 2008).

This paper will analyze Cima Company through the use of ratios especially working capital ratios, profit margins, cash flows and SWOT analysis. In addition, it will compare several alternatives which the business can take to improve its financial situation.

These strategies include: maintaining the current strategy and the market segment they served without any single change. This is the major recommendation in this draft and the company’s management should consider this.

Secondly is the expansion strategy i.e. introducing weekender segment so that they could serve people with low income and expanding the models of the boots to serve this new segment.

Thirdly is combining the two strategies i.e. the weekender segment and the mountaineering and hiking segment. Lastly is the option of selling the business. After all the researched is conducted, we will make our decision based on the results of this research which will improve the performances for Cima Company.

• 2.0 SWOT analysis of CIMA Mountaineering Company

2.1 Strengths

The Cima Company has a highly recognized name which has to boost its business. The name has assisted the company to reduce positioning errors in the part of customers.

Many companies have lost many clients because of such a problem which involves under or over positioning in their companies. The company has also a brand name that is distinguished from the rest and therefore it makes the prospect customers identify them very easily.