Cima Mountaineering Inc.
Business is making profits, and to make profits, a business must take a certain amount of risk. Hopefully, in the long run, that risk is minimized, and profits that once seemed unreachable are all the sudden true. This mere set of statements really sum up who I agree with. Margaret’s idea is both daring and risky, taking into account the fact of established players in the market, and the amount of head start they already have on Cima. While her idea is quite risky when you look at it (no equipment or experience in making the kind of boots to sell) and the time to market being probably 6-12 months away assuming fast turn around, and you have yourself some major risk.
At the same time, I look at Anthony’s idea, and I also see great risk, in taking such a small risk. If his idea pays off, truly he is creating a low cost segment in the market that Cima is already in. If he fails, they are even more behind everyone else, and no time to spare trying to build and chip away at the big boys market share.
So I need to recommend a solution to this small, but all to important problem. The numbers are all there. Each shows demand, each shows promise, but with no guarantee of succeeding in bringing in the profit. The company really has been at the high end of the hiking segment, selling professional level shoes. This gives them a bit of help in that segment (niche? It’s pretty small…only 13 million in revenues). But Margaret’s targeting your ultra hip people looking to by, the casual person. Anthony’s trying to pull more people into the high end, by offering smaller steps to the best boots.
Margaret’s idea falls prey to their current distribution chain, with specialty stores buying most of their stuff. Anthony’s idea is ...