Firewire Surfboards

Firewire Surfboards

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Summary

Firewire Surfboards is a company launched in the year 2005, by friends who shared a passion for not only surfing but taking this exhilarating game to an advanced level. The friends realized that the only way they could change surfing was to create surfboards that incorporate cutting edge technology, thus enticing all surfers, professional and amateur alike. The principal aspects that the young entrepreneurs took into consideration, while designing their novel surfboards include strength, flexibility and weight. Unlike the traditional surfboards, Firewire boards are stronger, more flexible and lighter than traditional boards. Further, the Company opted to manufacture custom made boards, instead of just producing boards that its competitors avail to the market. To gain additional competitive advantage, Firewire Surfboards moved its production activities to Asia, where it could sustain production without compromising quality.

Review/Analysis of the Case

Answer to question #1

There are two principal Firewire’s competitors namely; Channel Islands and Lost Surfboards. However, the stronger of the two, and Firewire’s greatest rival is Channel Islands’. This Company is considered to be the market leader in surfboard production. The level of rivalry is also evident from the fact that, the custom board price for both companies is almost the same, ranging between $650 and $675. The only distinction between the two lies in flexibility and manoeuvring capacity of Firewire boards. Channel Islands is able to retain its market share by upholding tradition and the fact that it engaged in production of custom made boards, long before Firewire did (Longnecker, Petty, Palich, & Moore, 2010).

Answer to question #2

Firewire’s entrepreneurial team should have taken into consideration several crucial factors. For instance, the team should have recognized the fact that most surfers prefer to get distinctive boards. This would have prevented Firewire from incurring unnecessary expenses, manufacturing ordinary sized board, available off any sports rack. Additionally, the young company should have critically analyzed the industry’s size, growth pace, basic trends, as well as the principal players (Longnecker et al., 2010). Acquiring this information prior to commencement would have played a significant role, in ensuring that Firewire dealt effectively with competition. For instance, they would have been aware that local production would be expensive owing to the extra materials required. For this reason, the team could have had measures to counter the high cost, sustain profitability