CIMA

I.         Factual Summary         Cimas sales and profits had heavy(p) steadily. However, the growth was beginning to slow as a dissolving agent of foreign competition and a changing raise market.

        Cima center on classic boots that were relatively insensitive to fashion trends.

        The boot market had shifted to a more casual, stylish hiking boot that appealed to hikers provoke in a boot for variety of uses. These boots ar cut-price and lightweight. Fashion also became a factor, and companies like Nike and Reebok marketed lightweight boots in a variety of materials and colors to meet the demand for styling in addition to performance         Cimas tar bring in markets are mountaineers and sobering hikers. In 1994, they had 6.25% of the retail market share in the linked States.

        The demand for Cima boots is seasonal, and most of the purchases are made during the summer months when the mountains and trails are most accessible.

        Cima implemented a computer-aided design (CAD) system in 1993 to shorten proceeds development. Significant cost savings were achieved as the new approach improved the profit and quality of the troupes boots.

        Cima uses traditional styling to avoid fashion obsolescence and the need for general design changes. However, all boots have features that the bon ton believed is essential to positioning.



Cima priced its boots high than competitors, supporting the positioning of the boots as the top quality product at each price point.

        Cima boots are distributed in 10 western states and western Canada through specialty retailers.

        Promotions are order to costumers and to retailers. Cima uses print advertising, product literature, and point of sales to promote its boots. The company regularly exhibited at industry trade shows.

        Retailers are further to take 50 percent margin on the retail-selling price.

II.          community Problem/Opportunity         Cimas profit margins...

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