The Outdoor Gear Industry Has Steadily Over The Last Five Essay

We are aiming at understanding how Recreational Equipment INC. (REI) achieved a competitive advantage through their strategies and how they implemented those strategies. REI differs from the other sporting goods stores in their quality product selection, complements, and excellent brand name promotion. These qualities enable REI to sell merchandise at premium price levels (Morse, 2003).

The North Face was founded in 1966 in San Francisco, California by two hiking enthusiasts taking a chance on a dream. Douglas Tompkins and his then-wife, Susie Tompkins, sold their small, climber targeted, clothing brand to Kenneth “Hap” Klopp two years later. From a single storefront to a global brand, The North Face has enjoyed incredible success in their 50 years of existence. They produce high quality outdoor apparel, gear and footwear in countries all across the globe. The North Face is a market leader when it comes to technology and performance. It’s clothing and equipment lines are catered towards college students, climbers,

Successful firms capitalize on economies of scale & scope, create management structures and invest in research & development

Profitability. The company strategy is to target only 25-45 years for specialist sportswear products, but a lot of

The R & D facilities allowed them to continuously come up with new products in the market. In my opinion they are flooding the markets with many new products, in a way they are confusing an average golf player with too many different types of golf club.

Recreational Equipment Incorporated (REI) specializes in outdoor apparel and equipment as a national retail cooperative. As a cooperative for this firm, 5.1 million members consist of the consumers themselves and in turn receive a percentage of the firm’s profits every year, receive discounts on goods, and engage in board member voting. All in REI generates $1.93 billion in revenue. The community is also highly valued with devotion towards philanthropic activities and advocacy programs. REI was founded in the 1930s by Lloyd Anderson, his wife and 21 fellow mountain climbers in order to provide business to local mountain climbers at reasonable pricing. Today it has expanded to become the largest consumer cooperative in the U.S. Customer satisfaction

Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a

Cabela’s is a well-known retail company in the United States and Canada which advertises products of clothing and accessories for any outdoor activity such as hunting, fishing, camping, boating, etc. For example, the merchandise they sell in the store ranges from firearms to boats. Apparel offered by Cabela’s is well known for outdoor activities and needs; but popular name brand clothing and accessories for everyday use are also an option for any potential customer.

According to Bezos, as the company grew from nothing to a successful organization you not only figure out how to do but what to do. And this happens as the company grows from a one many company to large company. So as the company grows bigger you figure out different ways to convince consumers. (Gregory T. Huang. (2010))

Mechanization and marketing were the keys to success in this age: companies that could mass-produce products and convince people to buy them accumulated enormous amounts of wealth, while companies that could not were forced out of business by brutal competition.

The sportswear industry is growing and becoming more competitive so the will be new producers and entries in the market with new ‘’aces up their sleeves’’. More competition in the market

The new small entrants are coming out with completely new idea which eats out of the existing segment of buyers. For an example, Heelying Shoes’ unique shoe with imbedded and detachable wheel turned out to be a success. They sold 1 million pairs in the first year of operations.

Its ability to have created a global brand these products is a valuable asset and a sustained competitive advantage

     Strong Products and Brands Global Presence High ethical standards High safety standards Highly influential market segment

A company that conversely was very successful in finding its niche is Geek Squad. When given the opportunity to expand they were hesitant, and took their time. They built their brand, then expanded, while GovWorks expanded before having a chance to see how the company would grow in the long-term.