Essay on Cima Mountaineering Inc

924 Words Sep 22nd, 2011 4 Pages
Situation Analysis:
Cima Mountaineering, Inc. is a company that manufactures mountaineering and hiking boots for mountaineers and serious hikers. The company mainly manufactures two classic kinds of leather boots- Glacier boots for mountaineering and Summit boots for Hiking. Although the demand for mountaineering and hiking boots has increased in 1994, only serious mountaineers and hikers are interested in their boots and the demand is seasonal, while the foreign competitors target both serious and weekender hikers offering them a line of fashionable boots at lower prices.
Over the years, Cima’s sales and profits have increased. The owners of the company grew up learning and inheriting the boots business and thus have considerable
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However, this alternative may be missing out to cater to the larger market share of weekender boots by not evolving with the markets. Also, the initial investment requirement for this product is almost equivalent to launching a whole new product line.
I would recommend Margaret’s proposal to enter the new “Weekender” segment of the hiking boot market. Even though it is a risky option, the Weekender market is larger than the serious mountaineering and hiking market and the opportunity to grow is immense given the sales forecasts for the coming years. With almost the same amount of initial investment requirement, there is an opportunity to cater to a different growing market. Cima mountaineering had been successful in moving from western boots to a different evolving market in the past, so they have some experience in adapting themselves to changing markets. Anthony’s proposal tries to cater to the same set of target market, when the actual problem is that the market itself is small with very little scope for growth. Also, Anthony’s proposal introduces a new range of mountaineering shoes for women. I don’t think it is a smart choice because the mountaineering boot market as shown in the market segmentation data is predominantly occupied by men.
The new boot prices are low enough to provide competition to the other low end boot companies with the added advantage of Cima’s leather and nylon uppers. Cima should

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