Q1) Analyze Burton using the competitive forces and value chain models.
When examining Burton Snowboards we can see how they considered factors of the competitive forces model in an attempt to expand globally.
Traditional customers
At its peak burtons controlled over 40 % of the US snowboarding market and remains the market leader despite growing competition.
One way Burtons has stayed market leader is by being adaptable and dynamic which is a competitive necessity.
Burtons take feedback from its customers very seriously and will move quickly to meet their needs. An example of this is if a rider tests a jacket and recommends re positioning a zipper, Burton’s production line must be able to make this adjustment quickly and easily.
New market entrants
Burtons designs manufactures and markets snowboarding equipment, one way they have taken steps to ensure that they don’t lose customers to new market entrants is by strengthening customer and supplier intimacy.
The available to promise process was taking hours to complete. (Available to promise, in response to customer order enquiries, reports on available quantities of a requested product and delivery due dates.) Burtons wanted to speed up this process so that its dealers and retail customers would have more precise information about the availability of items not in stock. Strengthening customer and supplier intimacy in this way forms strong ties with them, which reduces the likely hood of new market entrants taking customers from them.
If Burtons are considering expansion they must also take into consideration that they themselves will be new market entrants and consider possible ways to successfully gain a good customer base in these new areas.
They must consider if they can still access the same suppliers in those areas
They must research and understand the customers in those areas.
They must research any competition and ensure that they can provide competitive