How Can Demand for Custom-Made Boots Be Estimated?

La Casa de las Botas should not embrace any more expansion in my opinion, because as stated it’s difficult to attain skilled boot makers, and it takes about five years to train individual workers. The production cycle for one pair of boots takes about a week, and because precision is an important aspect of boot quality much care must be taken to ensure customer satisfaction. Producing the boots can’t be standardized because the boots are custom made, which makes each boot unique. The other issue that Jorge is facing is that he would have to expand or move his small workshop, and incur extensive overhead costs to keep up with supply and demand. Another problem Jorge has with expansion is that he has experienced economic meltdown in the past and believes “that the economy will collapse every 8 to 10 years” (347), and maintaining his business is far more important to him than expansion. I agree with Jorge because this increases the overall risk. The other issues with expansion are quality, and the superb customer service that the company reputation is built on. Jorge could improve and focus on the production capacity he already has, and increase seasonal sales by 20 percent in foreign markets.

If Jorge were to expand La Casa de las Botas it’s obvious that he should continue to target the Equestrian segment to start with, because 70 percent of sales come from this market and is “composed of adults, teenagers, and children of both genders” (348). He should also stay in the fashion segment, because this consists of 30 percent of company sales, therefore leaving room for diversity and growth especially during times of economic downturns. The upside for expansion is that marketing would be inexpensive because word of mouth has already been wide spread, and the company has attained high credibility due to the high quality of boot, and superb customer service provided to customers. La Casa de Las Botas has gained the interest and trust of retailers and designer...