Ski Boards, Inc. Market Entry Strategies: Refurbishing vs. Major Modifications

What are the options that Ski Boards, Inc. is considering to quickly enter the market with a new finish on its ski boards? What are the pros and cons of each option?

Options Considered by Ski Boards, Inc.

Ski Boards, Inc. is considering two options to quickly enter the market with a new finish on its ski boards:

  1. Refurbishing the old equipment: This option involves repairing and improving the existing ski boards at a cost of $250. Pros of this option include cost-effectiveness as it avoids the expenses of developing new equipment. However, it may limit the company's ability to introduce significant changes or innovations to the product.
  2. Making major modifications to the ski boards: This option entails implementing significant changes to improve performance, durability, or aesthetics. While this option offers the opportunity to enhance the product and attract more customers, it could be costly due to research, development, and manufacturing expenses.

Analysis of Pros and Cons

Each option has its own set of pros and cons that Ski Boards, Inc. should carefully consider:

  • Refurbishing the old equipment:
    • Pros: Cost-effective, quick market entry, avoids expenses of new equipment development.
    • Cons: Limited ability to introduce significant changes or innovations, may not appeal to all customers.
  • Making major modifications to the ski boards:
    • Pros: Opportunity to enhance product, attract more customers, improve performance.
    • Cons: Costly due to research, development, and manufacturing expenses, time-consuming process.

Decision-making Process

In deciding between refurbishing the old equipment and making major modifications to the ski boards, Ski Boards, Inc. must analyze various factors:

  • Cost: Evaluate the financial implications of each option and the overall budget for market entry.
  • Time: Consider the timeline for implementation and how quickly the new finish can be introduced to the market.
  • Market Demand: Analyze customer preferences, trends, and competition to understand market needs.
  • Competitive Landscape: Assess how each option positions Ski Boards, Inc. against competitors in the industry.

By carefully weighing these factors, Ski Boards, Inc. can make an informed decision that aligns with their goals, resources, and market conditions.

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