Cima Mountaneering Inc

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1. Identify which (if any) new products are essential to the company's growth. Currently, none of the Cima Mountaneering Inc. boots are positioned for the Weekenders segment of the market. By looking at the numbers, this segment is about 25% of the whole hiking boot market. Plus, this is the fastest growing segment. Currently Cima participates in Mountaineers and Serious Hikers segments. Unfortunately for the company, those are the slowest growing and smallest segments in the market. Antony and Margaret suggested different plans. Anthony’s plan promised to introduce new boots to the existing line. Margaret’s plan promised to introduce a new line that will be directly marketed to the Weekender segment of the market. Here is my take on the Anthony approach: Positive: Company will use its existing expertise in designing 3 new boots. Promotion program will not be changed dramatically. No image change. Customers will still be thinking of Cima boots as good quality and durable. Negative: New boots will not necessary be positioned for the “Weekenders” segment. New capital expenditure for the new equipment. Here is my take on Margaret’s approach: Positive: By developing new line of boots Cima will be able to target “Weekender” segment. Increase in sales if successful. Negative: Uncertainty, since company does not have an expertise in this type of boots. Market acceptance. Possible image change which can either be a positive or a negative factor. New capital expenditure for the new equipment. Tougher competition which will include such big companies as Nike, Reebok and others. Even though I see a lot of uncertainty and tougher competition in the “Weekender” segment of the market I believe that company should try to move into this segment. By comparing the costs between Antony and Margaret approaches I came to the conclusion that they are very similar,

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