Cima Mountaineering, Inc. - 5792 Words

MARK 60013 Case Study #1: Cima Mountaineering, Inc. Markus Decker Kevin Dulac Erik Frank Chad Mays 09/24/2002 Introduction In this case study, our team examines the decisions facing a small western mountain boot manufacturing company, Cima Mountaineering, Inc. This paper will provide a brief overview of the case, including a quick background perspective of the company. We will present the two options given in the case, and examine the four possible alternatives, which exist as possible solutions to the company’s dilemma. For each possible outcome, we will provide detailed analysis of each alternative evaluated against various criteria. Finally, based on the results of the analysis, an overall conclusion will be†¦show more content†¦Briefly, the following criteria used are: †¢ Strategic Fit – How does the alternative fit within Cima’s existing company strategy? †¢ Product Advantages – What are the unique benefits? †¢ Market Forecast – What is the outlook for growth and market share? †¢ Distinctive Capabilities – What are the unique aspects of each alternative? †¢ Production Capacity – How will Cima address capacity issues for these alternatives? †¢ Market Coverage – What is the market penetration? †¢ Market Segment Targeting – What is the method for targeting specific market segments? †¢ Positioning – How is does each alternative position Cima within the market? †¢ Distribution – How will distribution and value chain issues be addressed? †¢ Pricing – What is the pricing strategy for each alternative? †¢ Advertising and Sales Promotion – How will promotion of new products change? †¢ Net Present Value – which alternative is most favorable from a financial standpoint? Strategic Fit Within the context of the Company’s vision at the time of this case, Anthony’s proposal to add two new products to the existing Summit hiking boot line is well within the existing company strategy: high quality products aimed at a very specific market segment. Margaret’s proposal to introduce a third lower cost â€Å"weekender† product line means that the company must deviate from their traditional productShow MoreRelatedEssay Cima Mountaineering Inc916 Words   |  4 PagesSituation 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 seriousRead MoreEssay about CIMA Mountaineering, Inc Case Study1005 Words   |  5 PagesStatement CIMA Mountaineering, Inc. is a company manufacturing in hiking and mountaineering boots for beginner to experience hikers. CIMA sales and profit had grown steadily within the last several years. However, CIMA growth is beginning to slow down as a result of foreign market and changing market. The company is under consideration of two marketing proposals, these two marketing proposals will discuss about marketing strategies for increasing sales and profits of the company. CIMA Mountaineering, IncRead MoreMarketing Cima Mountaineering Case Study1940 Words   |  8 PagesWhat is Cima’s current situation? After the renovation of Cima mountaineering, Inc. in 1990, they started with $ 13 million revenues, with profit margin of 4.01%. The next 3 years witnessed a continuous increase in sales and revenues. Their profit margin increased to reach 4.97% by year 1992. They reached an all time high sales and revenues in 1995 of $20 million; however their profit margin decreased to 4.27%. Cima mountaineering, Inc. has been growing steadily the sales by a significant percentage