Contingency Plans
We expect little direct reaction from competitors. When we launch we will be below the radar of the big firms. The smaller companies are not expected to view us as a significant competitor, perhaps even as an oddity. The biggest concern we have with regards to our competitors is that they may appropriate our concept. Should one of the national competitors desire, they could take our idea and thus one of our main sources of competitive advantage. They could at the least undercut our pricing on the custom snowboard concept. Our plan to counteract this potentiality is to position ourselves as a grassroots firm, and build a cult following that cannot easily be eroded by a large national competitor. This still leaves us open to challenges from smaller competitors, but hope to be able to capture first mover advantages on them. Moreover, it is only the large companies who...
We also intend to retain our earnings from the retail operation as well. This will allow us to hire more artists and expand our facilities. We hope that our first year will provide us with enough money to secure additional industrial space, so that we are able to double or triple our capacity.
With our plan to expand statewide in year two and to neighboring states in year three, we will need to retain all of our earnings to finance this growth. By the third year, we hope to have enough money to improve our R&D capabilities with regard to developing higher performance boards. At this point, we believe we will have achieved sufficient size as to embark on the next stage of our growth, which will take our…
