Burton Snowboards example essay topic

Burton Burton Snowboards takes surfing to the mountains, with premium snowboards and equipment. Jake Burton, the world's first snowboard maker, founded the company in 1977 in Londonderry, Vermont. Despite it being small and privately owned, Burton is the industry leader in snowboards and equipment controlling 40% total market share in the winter sports industry. Burton is a global business with its main headquarters in Vermont, Japan and Austria and worldwide distribution capabilities in over 35 countries. Burton Snowboards operates three factory outlet stores in Vermont, Massachusetts, and Austria. To create buzz marketing, Burton encourages newbie's to experience the slopes with its Learn To Ride (LTR) line of equipment and programs at ski resorts nationally.

In the past few years, Burton has started independent companies, which have their own individual identities and products. Burton has also created one of the most extensive online shopping experiences for its clientele. (web) Strengths Burton attributed to the development of the sport of snowboarding, as it was the first and oldest manufacturer. The company has a loyal customer base and an established retail distribution channel. Burton provides customers with an interactive online website.

In order to provide help to mountain resorts to attract and retain snowboarders, Burton's primary customer base, they have created integral relationships with resorts by providing cultured programs for snowboarders, such as (LTR). (web 2004) Another attribute to Burton's success is its strong distribution system. Burton has eliminated the intermediary channels by shipping its products directly to specialty shops with the use of the Burton Interactive Network, launched in 1999. The ordering system offers retailers the ability to access the status of their orders, marketing material, credit standing, and re-order capabilities. This speeds up the entire distribution process from its factory to the retailer. In Japan, Burton has made it easier to process direct feedback from the riders, meeting their specific needs. (web 2004) Weaknesses As Burton is a privately owned company, it is not as competitive as other companies are, when compared to public corporations that have financial support from shareholders. Burton reinvests in its company with only its profits, yet with shareholders backing, investment could be higher.

Burton expanded by its family by creating four parent companies within two years of each other. The short time committed to, and before starting, each new addition may not have allowed for enough attention to each. (web 2004) Opportunities Burton created and owns the US Open snowboarding championships, in addition to the enormous success in the snowboarding industry; it has the potential to grow beyond the U.S. The possibility to create similar events in Europe, China, Japan and Canada, where the demand for snowboarding is increasing, could benefit Burton. Through development of this event in these key markets, Burton can satisfy the needs of snowboarders globally, and at the same time increasing their brand awareness. Since women are growing in numbers on the slopes as snowboarders, and it shows that women do snowboard more often, this gives Burton the opportunity to expand into this niche market. Burton's designers are taking advantage of the new technology by adding high tech attributes into their product designs, such as their "smart wear", which allows the rider access to music through a built-in mp 3 player. (web 2004) Threats Burton is facing increased competition from chain stores and other retailers who offer lower-priced boards and equipment.

As many of the snowboarders are young and are unable to afford the cost of high-priced, specialized products and the cost of trips. Since the dangers of snowboarding and winter sport activities are well known, Burton and the winter sports industry face the threat of increased resort closures as many lawsuits have surfaced against many resorts. (web 2004) Globally, there are 4,348 specialty retail shops selling their products, including 1,563 retail shop in the U.S. Research shows that chain store sales were down 5.1% for the 200/2003 winter sport season, compared to the same period in 2001/2002. However, snowboarding was an anomaly for the chain stores. It was up by 14% comprising $66 million in sales. Sales for snowboard equipment in 2002 were approximately $58 million.

Snowboards ended the season up 1.3% in units sold and 9.1% in dollars to $27.9 million. The two largest categories in terms of unit sales also saw significant gains in sales. Because of increased sales, there is a lack of residual sales in boards (down 47.9%). Thus, we see that Burton Snowboards still has strong growth opportunities. (web 2004).