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Skadurz Pro Case - Essay Example

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This is most critical because it involves a reduction in the company’s capacity to half of its former capacity, a permanent decision. It is also important because the loss…
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Skadurz Pro Case
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Skadurz Pro Case

Skateboarding and snowboarding used to be fads, but they have matured into mainstream sports events. At the same time, they have maintained their following as a hobby for many amateurs. Both as a sport and a hobby, the patrons of this activity are either adolescents, teen-agers or young adults, as the activity is too strenuous for older adults. Also, it may be assumed that the clothing lines carried by the stores are those that cater to the youth’s tastes and preferences.
Greater safety consciousness has prompted the use of mandatory safety gear, including helmet, elbow and knee pads, items which could be included, as it most likely was, in the goods for sale in Skadurz. This would have added to potential sales in the stores.
Location: Sudbury is a relatively young city, with the median age at 39, and about one-third of all the residents are below 25 years of age. There are also a dozen high school in the are, two colleges and one university, indicating that young people residing outside the city would certainly be visiting it on a regular basis, because they would be enrolling and studying in these academic institutions.
Maintaining the status quo would entail no extra expense, but store performances may suffer if Connie retires and Joel takes over management of both stores. Hiring a new manager may be needed. Also, this does not address the threat of the new competition
If South End were shut down, the advantage is that New Sudbury accounts for approximately 60% of the sales and the profits (see Table 1), and thus has a stronger market. The disadvantage is that the existing market may weaken because of the new competition in the area (West 49), and if this store fails, then Skadurz would have lost both South End and New Sudbury markets.
If New Sudbury were shut down, Skadurz would immediately lose 60% of its sales and profits. On other other hand, ... Read More
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