VANCOUVER ISLAND WINDTALK • MBA Thesis
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MBA Thesis

Posted: Tue Jun 13, 2006 10:39 am
by KC7777
Hi,

Seeing as there is no wind, this is probably a good time to ask this.

I am in the process of completing my MBA at SFU, and after 2 years of hell (and the main reason my sailing days are down over that same time period), the last thing I have to do to complete the MBA requirements is a full-blown strategic analysis of a profit-based company (= approx. an 80 page thesis!).

In this regard, I need to comprehensively analyze all elements of a company's strategic position, including: a description of the firm and its products/services/customers, an assessment of the external environment, a competitor and stakeholder analysis, and an internal analysis. Then strategic options are detailed and optimal ones selected.

I have selected a US windsurfing sail maker for my analysis (I'll tell ya later..it's not Ezzy).

The process (trying to be logical) is sequential. So the first step....an external analysis includes an analyses of customers, competitors, markets and the environment – trying to identify existing or emerging opportunities, threats, trends, strategic uncertainties and strategic options.

I have done the competitor, market and environment analyses but need some input on customers. FYI. The key competitors I've identified in this industry are (in no particular order): Neil Pryde, North, Aerotech, Ezzy, Sailworks, North, World Sails, Naish, Gaastra, Maui Sails, Simmer, Severne, Windwing, Arrows, Gun, Northwave, Loft, Hot/Real Wind, Pacific, Goya, Mistral and Rushwind.

Here are some questions that I need input on for the "customer" section:

1. What elements of sail making company's products and/or services do you value most?

2. What are you really buying when you buy a brand of windsurfing sail? And are there any changes occurring in what motivates you (priorities?) to buy a particular brand of sail?

3. What do you think would make you as a customer switch sail brands?

4. Are there any unmet needs that you can identify that sailmakers are not achieving?

Any help would be appreciated and your valuable input will be rewarded in the knowledge that you may impact the strategic analysis at a top sail maker....as well as help a fellow windsurfer complete his MBA on a topic of interest. Or maybe I will do a draw for some windsurfing swag from the list of contributors?

Be brief, or long winded, I just want honest input. Maybe send info to: if you want to be long winded so we don't clog this forum. All info is confidential.

Thanks in advance.

KC 7777 (Keith)

Posted: Tue Jun 13, 2006 11:37 am
by downwind dave
I think im the worst guy anyone would want marketing data from. Ive never bought a new sail and i have 6 sails in my quiver from 6 different brands! still, id like to help you with your project so ill send you an email. good luck! :P

MBA thesis

Posted: Tue Jun 13, 2006 12:32 pm
by KC7777
DWD,

Thanks! All input is appreciated and sought after.

I don't care if you buy sails new or used, have 6 different sails from 6 different sail companies....just an idea of what makes you buy a particular sail at a particular time?

One more point, for windsurfing sails, cost may be a factor you look at (Kus I am speaking to you...Ha!) whereas some have no regard for the cost....let's assume 2 sails cost the same, why would you buy a particular brand over the other? Is it what you've heard about it, what your buddy sails, cause Kevin Pritchard can back loop on it? the quality etc.

Also, for all you guys trying to guess the brand I am doing the MBA project for....it is one of the companies in the list in the first post above.

Thanks,

KC

Re: MBA thesis

Posted: Tue Jun 13, 2006 2:54 pm
by KUS
KC7777 wrote: ...cost may be a factor you look at (Kus I am speaking to you...Ha!) whereas some have no regard for the cost....
Whoooaah, talk about the pot calling the kettle black, admittedly you may not care about cost much but you sure do about resale :lol: Ok, I'll bite, I suppose I will be interested in someone implementing some of this although very clever of you to have folks write the thesis portion for you..

I buy next to nothing new (I think 3 sails, 1 board in my life) but do care about quality and longevity. Breakage items that leave you stranded I regularly upgrade (mast, bases, ropes). This is not necessarily required of sails, blow a window, no biggie esp. if you keep buying beer for Mr. Fixit :wink: However, I am partial to a couple of sailmakers for good reason:
1. What elements ...do you value most?
a) Foresight to prevent wear & tear, Xply where needed, foot protection, sleeve reinforcement, on the "head" carrying reinforcement area, use materials UV protected (some sail cloth colors/straps fade like crazy), mildew resistance etc. b) allowing for best fit such as floating turban, two types (or lengths) of masts possible, two height adjustments for boom, ability to rig "full" and "flat" without much performance compromise,
c) ease of rigging, userfriendly pulleys (that don't rust or corrode, some still rust after a while, manoman), cams don't pop off, non-stickey turban, protect from sailcloth edges (the old Neil Prydes used to give you cuts under the fingernails every single time you touched them, Chinese torture stuff)
d) decent storage bags, zippers that open a bit wider to get long sails in more easily and loops for hanging, draining grid ends (some still don't have this, geeez) with marked sizes on ends and laterally
e) I am of larger size so those built for team sailors that are heavier weights and tall consequently rig at proper height and sails have decent low end models as well as full-depower wave models, very rarely do sails do this equally well but I have (had) a couple where tradeoffs were minimal and will continue to buy from these providers.
f) must continue to perform in overpowered conditions once adjusted (some sailmakes still can't achieve this), some u downhaul a bit more and they turn gutless, on-off shape (good for big waves but not much else), no range
g) ease of repair, I understand some sails due to their construction are much more difficult to repair therefore resulting in crappy repairs or more expensive ones
h) work in local conditions: there is no point in having pure wave gear in Canada and most of our winds are gusty with holes, if the sails don't allow you to plane through these your sailing will suck, you will suck and you will immediately think your gear sucks....all of which are probably true :)
i) light weight as possible, why are those pulleys, grommets not all made of carbon? why Xply in the top panels? why the heavy rubber and padded mast bases, if I want a mast protector I'll by one, jeez

2. What are you really buying when you buy a brand of windsurfing sail?
Reputation built on past excellent design, you assume that the newer sail will be as good or better than it's earlier design/model.....which unfortunately isn't always the case....

And are there any changes occurring in what motivates you (priorities?) to buy a particular brand of sail? &
3. What do you think would make you as a customer switch sail brands?

New company with known quantities, Team riders, innovative design and materials, purely availability (correct size available on Ebay or in local store to replace your worn out or fried sail) Severne is a good example.

4. Are there any unmet needs that you can identify that sailmakers are not achieving?
a) Roller bearing for outhaul to prevent chaffing,
b) self-extending/guiding mast sleeve so floating turban can be guided onto mast tip while rigging without having to pop it on, run to other end only to watch it fall off again (stiff fabric, wire, telescoping sleeve thing?)
c) more use of hi viz potentially personalized graphics, colors, materials: glossy ply whatshallmacallit, holograms, names
d) serial numbers, name tag area to dissuade customs harrassment
e) spend some more innovation time to reduce weights in materials
f) non-crush friendly storage bags, center lightweight perforated plastic roll to place inside rolled sail
g) I used to use a 1/4 inch bungee to hold the sail together, now the newer ones do come with the "strap-on" which is great.!! Should have asked this question 5 years ago I guess. These however are too thin (line chaffes, then breaks) and are located at the mast sleeve, whereas it should be located about 1/3 way along sail foot so it holds sail more securely

but most importantly: IS IT THE RIGHT COLOR :twisted: I'll never buy an orange, baby blue, pink or purple (unless with black) sail dood and ya don't wanna be Mr. Rainbow out there, eh? 8) Crap, this turned into a tomb, shouldda emailed I guess :roll:

Thanks,

Posted: Tue Jun 13, 2006 11:04 pm
by KC7777
Kus,

......now I may have to reference you in the thesis. But thanks, just what I was looking for and I appreciate it. I owe you a cold beer for this one.

For the comment directed at you above...and to address your reply comment below:
Whoooaah, talk about the pot calling the kettle black, admittedly you may not care about cost much but you sure do about resale
This does solve one mystery and bring up another MBA thesis question...

First the mystery....point taken on me wanting decent resale. I do. The mystery is I was really wondering why no one (only 1 person only after I offered 2 Ezzys for $900) responded to the Ezzy sale posting. Even though these Ezzys are new = never sailed, the price was too high for the 2nd hand buyer (and guys that buy new sails would have just bought it new already). Take the 2006 5.2M Ezzy I offered to sell for $575 CDN....anyone could have offered $500 and got it. It is $564US at Windance so let's say $625CDN or so with exchange...gotta add another $50 for gas or shipping = $675 CDN. Versus $500 CDN. An interesting economic example of supply and demand at work here. Where is the equilibrium price for slightly used gear?

Anyway, re. the MBA, I think this point is a factor for windsurfing sail makers to consider. ...the fact is a lot of windsurfers are like this.....they don't buy new sails due to price.

So what do windsurfers think the cost (end price to the consumer) of a high quality performance sail should be? i.e. say any decent sail from Ezzy, Neil Pryde, Aerotech, Sailworks, North, or Severne (for you Bobson!) should be? A lot of the MSRPs are $500US - $650US for freeride gear. How much lower does the price have to be to make you jump on new sails?

Thanks,

KC

Posted: Wed Jun 14, 2006 9:48 am
by KUS
I amended some comments as well above, some things came to mind.

I think a lot of this is dictated by year-end sale prices. You can, from sail lofts and the pros, purchase a brand new "1 yr old" sail for $250-300, some slightly used ones for as little as $200. You may not get the color, type or size you are looking for tho, so it's luck of the draw. I don't have to have the 2006's in January, I can wait til X-mas and pay 1/2 or 1/3. Also for a decent used sail I will pay a similar price if the brand and size is what I need/want.

How much would I pay? It used to be around $400 but there has been a glut of good used sails around, unlike in the mid 90's where after the twist revolution you could only find beaten sails of decent designs. Now they are turned over more often and our consumer/spender attitudes yield a much better used sails market. I just picked up a new 2005 6.2 wave still in paper wrapping for $250US, with shipping/exchange $300. It's the type, size and color I wanted so paid more than usual, about my limit now.

Tax and shipping (brokerage as applicable) add a huge percentage too, I think it's highly underrated to buy locally second hand or when in Maui, it's by far the best deal :!: I think you'll have a hard time recovering costs from a newer sail, regardless of excellent shape. Used sail ceiling seems to be around $280-300 and the odd person selling their gear for a six pack to "make space" drives the prices down more, just look at kite re-sales. :roll: so you should be prepared to sail them for a couple of years as you'll lose those $$ anyway :? Also there has been little innovation since 1992 so any sail in decent shape (monofilm that's not hardened, battens not cracked) will serve the owner for many years and some can be found for $100 or even less. What dictates the price then is sail size and type more than anything. I think my Retro 6.0 for example is rare, a prime type for most conditions when the wind is THAT (Nitinat) light, is a great size for even smaller people, in decent shape...but still sitting in the garage as a spare until someone appreciates its value :lol:

Posted: Wed Jun 14, 2006 10:34 am
by mortontoemike
KUS.

Do you really think that there has been no innovation since 1992??? :shock: I'm certainly not an expert on sail design but in my mind the "retro" (small "r" designs that stared to appear around 1998-9 were much better designed than their counterparts from 6-7 years earlier. The most evident thing I have noticed is the combination of range, power, and ease of handling has improved dramatically in the last 6-7 years. The sails are also a lot tougher with the introduction of X-ply. In my mind durability is an innovation in sail design.

As for price, I can't bring myself to pay $800 for a sail. It just seems like too much money. nevertheless I have bought a variety of new sails over the past 5 years but none at the full list price. All have been deals, closeouts, e-Bay buys, etc. $450 - $500 is my absolute maximum.

Mike

Posted: Wed Jun 14, 2006 10:45 am
by KUS
yeah, I suppose "little innovation" is a bit strong but I recall my Neil Prydes from the early 90's and they had a humongous range, were strong and fast, light as heck, could bag out or twist off, I would still be sailing these today if the monofilm had held up.

I do like some of the new wear/tear ideas, new bits and pieces but from a sail performance perspective, they tried the flex and rotating head, the cut here/add there and really, nothing compares in magnitude to the twisting head design of 1992. I think the strap-on is cool but pales in comparison, no? :wink: As far as Xply, well, I haven't really seen the advantage....I have blown as many Xply panels as I have clear monofilm, in theory it is stronger, in practice, when my head or knee takes out the ply, it takes out the Xply too and the stuff is waaaaay harder to find and match and patches look like crap, monofilm: no problem AND it's lighter and cheaper. Sooooo 8)

I am in your shoes

Posted: Mon Aug 21, 2006 1:47 pm
by kamaaina
Will start my applied project next week in MOT as well...aouch :?

Posted: Mon Aug 21, 2006 3:08 pm
by mortontoemike
What's MOT?

What's MOT

Posted: Mon Aug 21, 2006 3:56 pm
by KC7777
MOT = Management of Technology MBA