J Boats Case

J Boats

After analyzing the J Boats case and considering the five forces model, there are a few things that should be addressed. J Boats works in partnership with TPI to build a great product. TPI assumed the agreed upon manufacturing costs plus a mark up. So as far as suppliers is concerned, it was TPI’s responsibility to minimize costs. However, there is some tension among TPI and J boats. TPI does not share unexpected efficiencies or cost overruns. So TPI may be charging costs at a certain level, but then when they become more efficient they do not lower the costs transferred to J Boats thus increasing TPI’s profit margin. There is a small amount of concern regarding Buyers because the life span of their product is so high, often times J Boats is competing with itself on the used boat market. Because J Boats aims for the high end racing sector, they are not always available to every customer. Low end customers seeking a cruising vessel perceive J Boats as the racing type at a high cost and are therefore turned away. In a period like today, when money is hard to come by, I would be worried about being in the high sector and the possibility of people abandoning the sailing hobby. And like all sectors, J Boats needs to continue to outperform all competitors.

Perspective – designing top of the line sailboats for a profit because sailboats are what they love.

Position – they proved that their product was top of the line and reliable for winning races, so they positioned themselves in the high end sector forcing buyers to consider the high end product at a higher price.

Plan – their plan was to increase market share with multiple design models and entering other sectors like the market for a cruising vessel or a larger vessel. While doing this and producing a reliable product, they will develop a brand synonymous with sailing.

Patterns – Because J Boats has developed different patterns and the ability to adapt is why they are a successful company. They have...