Question: Hi, can anyone help me with getting internal analysis by resource analysis and value chain analysis and external analysis with Porter's five forces of the

Hi, can anyone help me with getting internal analysis by resource analysis and value chain analysis and external analysis with Porter's five forces of the case NewStar Marine & Scooter at Ivey? I cant upload the whole case here as it is way too large but if you know the case or can figure out which case i am talking about then the help would be really nice. i'll provide my fact sheet.

Background

  • Norman Wiechert was the owner of NewStar Marine & Scooter Inc. (NMS) who ran it with his wife, Dalyce Mallion in Eastern passage, Nova Scotia.
  • Wiechert never studied business, as he had interest in boating.
  • He had experience in tool and die journeyman, video producer, teaching, real-estate development but he began his own retail business in 2013, following his passion for boating.
  • His skills were self-motivation, being a visionary and he was mechanically minded person.
  • Mallion had education and experience in advertising industry, who worked as a brand manager for whole foods limited, regional sales manager with Sandoz Canada inclusive, marketing manager for Ronahan Food Brokers ltd., currently resident manager and bookkeeper at NewStar properties. She carries the skills for being creative, organized and a writer.
  • NMS officially founded in 2013.
  • It was situated at a beautiful marine setting near heritage fishing village and boat launch, which was ideal for future development.
  • NMS had a storage facility and workshop that they build with an investment of $290,000 (purchase of land) and another $70,000 (renovations, landscaping, a parking lot, and signage). They opened it on January 1, 2014

External broad environments

industry environments

  • 50 different brands- Costco, Walmart, SeaBright Marine, freedom and Highfield.
  • In 2016, Bass Pro megastore opened up and it greatly affected boats and motors sales.
  • Halifax area had few marine stores including White Water Marine Ltd., Seamasters Services Ltd., New Wave Power Products, C Robertson Business Equipment Halifax and PMV mobility house. Cabelas, a fishing and hunting outlet store planned to open near by in 2018.
  • Many Halifax stores started to offer electric bikes because NMS was not appearing in online searches for e-bike Halifax. Wiechert was sure that poor online presence was negatively affecting scooter sales growth.
  • Wiecherts aluminium boats competed with the brands delivering quality and affordable prices.
  • NMS had a competitive advantage over big-box stores because of NMS offering higher-end brands.
  • NMS most busiest months were in summer, however, Thursday afternoons remained relatively slow in business.
  • Wiechert competed with other smaller dealerships or manufacturers in every brand category
  • About 5% in sales were observed from repeat customers, appreciating passionate customer service at NMS.
  • But many customers were facing trouble in learning how to use certain marine and scooter products. Some customers, buying online, faced the challenge of unboxing their product (Since, Wiechert was always providing advice and hands-on product tutorials).
  • European trade tariffs were said to be decreasing later in 2017, but the U.S. dollar continued to increase, which decreased margins on many NMS products.

Internal company environment

  • NMS offered inflatable boats, aluminum boats, outboard motors, trailers; electric bikes, scooters, and mobility scooters.
  • Their sales had tripled from $198,000 in 2014 to $600,000 in 2016.
  • Great customer service and beautiful seaside location.
  • Lack of proper growth plan leading to improper implementation.
  • NMS generated over $400,000 in an annual gross revenue.
  • Toss N Save and the Wavewalk, a foldable rigid inflatable boat and foldable yacht cycle are some examples of their unique products.
  • These products did attracted costumers but they were eventually unsuccessful because they were too new to the market.
  • Over the years, NMS became a dealer for many successful brands for example: Suzuki, Daymak and Tohatsu.
  • NMS had no formal training in HR and retail store management, thus followed intuitive decisions.
  • They had only 2 part-time employees- one for receiving phone calls and other for helping in servicing; they had limited skills, lacked experience, and were unpredictable about their absence and they were higher just above minimum wages because NMS had lower margins of product.
  • Mallion was responsible for organization and paper work and Wiechert was responsible for everything else.
  • Wiechert struggled to use the space effectively; garage space had no room to efficiently serve scooters and motors and did not have space to inspect trailers.
  • Access of forklift in containers space was not easy.
  • Limited showroom space had created a challenge for selling various products.
  • Customers were making their purchase decisions based on juts pictures.
  • Industrys marketing budget- 7-8% for small businesses, whereas, NMSs was 2.1 %.
  • Advertisement strategy: Through kijiji annual appearances at trade shows, and advertisements on a local radio station.
  • Wiechert created a functional website but was not maintained and needed to be upgraded.
  • Because of poor point-of-sale (POS) system and inconsistent bookkeeping procedures, it was difficult to accurately depict NMSs current financial situation.
  • Malllion and Wiechert borrowed $155,000 from a personal line of credit and had an additional $160,000 loan from NewStar Properties.
  • Wiechert tried to keep roughly $50,000 in the business bank account for petty expenses.
  • GE capital financed NMSs products, provided $170,000 line of credit which put more confidence in Wiechert that business could remain operational during expansion.
  • Wiecherts staff members tried to utilize social media platforms but they were getting updated consistently.
  • NMS scooter sales were below average because of ineffective brand association
  • Along with small miscellaneous products, NMS had four major retail categories:

- Boats

- Motors

- Scooters

- Trailers

  • They were available in different size, style and brands, leading to vary margins.

Boats:

  • NMS offered six brands of boats considering quality and price conscious options.
  • Inflatable boats:

- Inexpensive family boat to use on nearby lakes.

- Sizes lie between 9 (most common size) -12 feet.

- Selling feature: Portability and stability

- Mostly purchased during spring or winter

  • Aluminium boats and rigid-bottom inflatable boats:

- More durable and higher end options.

- Larger boats, more popular in fishing industry.

- Aluminium- 12-16 feet

- Rigid-bottom inflatable- 10-14 feet

When business grew Wiechert realized the demand for designer boats which includes steering console or motor package deals. These items provide better margins but the company was known for its small marine products. Thus, Wiechert partnered with MirroCraft and Grand/Gala to offer bugger options. They advertised in leading magazines, which increased the consumer demand.

Wiechert is planning to sell 14 foot pontoon boats in 2017 and he would become the only dealer of such boat in Atlantic Canada.

Motors:

  • The larger the motor, the better the margins.
  • Consumers want security of well-known brands.
  • In 2015-16 NMS partnered with Tohatsu and Suzuki to build his own credibility, it helped him in getting more sales for branded motors, however did not had healthy margins.
  • NMS focused on motors ranging from 2.6 to 20 HP, weighing 30-100 pounds.
  • Wiechert hoped to start selling 60-140 HP motors, which could weigh up to 300 pounds.
  • This market had less competition but demand was unknown and NMS was not recognised as representing large and expensive products.

Scooters:

  • NMS was exclusive dealer of Daymak and Emmo in Atlantic Canada for light electric vehicles.
  • Vehicles required no gas, license or registration.
  • Speed was regulated to maximum of 32 km/hr.
  • This market offered better margins.
  • In Nova Scotia, electric scooter market was underdeveloped.
  • There was no branding, no advertisement, no political control and products were inconsistent.
  • Anyone could purchase a trailer load of scooters and sell them by putting their brand name on it. (This strategy was followed by Walmart, Costco and Canadian Tire)
  • This product category included electric bikes, scooter and mobility scooters.
  • Scooter were perfect for mature customers (inexpensive for travel short distances).
  • Mobility scooters were mostly targeted towards elderly consumers.
  • Because of the difficulties of quality of Daymak mobility scooters, Wiechert partnered with other brands.
  • Mobility scooters could be a profitable market because of many retirement homes close by and aging population.
  • In 2016, Wiechert sold 68 scooters at an average price of $2,332 per unit. An Emmo dealership in Toronto, Ontario, sold between 600 and 700 scooters per year, while a Daymak dealership in Hamilton, Ontario sold an average of 200 scooters each year.

Trailers:

  • Sold with larger boat packages- Most popular Salter trailer kit.
  • Sold unassembled.
  • Could be used for construction equipment, outdoor store equipment, quads, boats or motor-bike.
  • It was affordable.
  • Limitation due to Nova Scotia law: Only fully assembled trailers could be registered.

Strategic direction write down from the case any information related to who the stakeholders are and what may be guiding their long-term direction (vision, mission or objectives)?

  • Vision: Attracting more profitable consumers by providing unique products.
  • Objective: They set on primary goal each year of selling unique products, the ones that are not being sold by any other competitors.

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