Essay On Cabela's

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Market Definition
The outdoor recreation market is a market that is often overlooked due to recreation being considered a commodity rather than a necessity. However, the market continually grows with more and more people beginning to find the outdoors personally satisfying. Bicycling, camping, fishing, hunting, motorcycling, off-roading, snow sports, trail sports, water sports, and wildlife viewing all constitute outdoor recreation. Consumers spend an estimated $646 billion dollars every year to take part in such outdoor activities and the outdoor recreation market provides the American economy with approximately 6.1 million jobs1. For consumers to partake in outdoor recreation, they need necessary clothing and equipment which fall into …show more content…

The largest legal issue stems from the disclaimer liability on products that Cabela’s sells.2 Cabela’s merchandise that they sell can be dangerous to customers if not used properly. Disclaimer liability includes the warranty on products as well as damages done with the items sold from Cabela’s. Copyright and trademark notices are another important issue with legal issues. People cannot modify, publish, or transmit works to exploit Cabela’s copyrights, without first gaining written consent. Another issue similar to copyrights and trademark notices are the patents owned by Cabela’s. Cabela’s keeps strict watch on all its patents. At any Cabela’s store there are governing laws in place that customers have to comply with. Age requirements for certain merchandise to be sold and background checks are examples of this legal issue. The last major legality issue mentioned is the submission policy. Cabela’s does not consider unsolicited ideas.2 Cabela’s has enough resources and is considered the world’s largest retailer of outdoor merchandise and doesn’t need any assistance with creating new ideas. The reason of this disclaimer is to avoid any confusion about similar products or business strategies that might be similar to submitted …show more content…

There might be other circumstances behind the profit increase. During a recession, expensive outdoor merchandise will be one of the first areas to be cut from an individual’s budget. Even with the fact that outdoor merchandise is seen as an accessory, Cabela’s has been seen as a strong company through the recent recession.
In the US there is a large population of outdoor enthusiasts. In 2012 revenue was $3.1 billion and was in increase of 21% from 2008 levels.3 The profits more than doubled over that time span to $173 million.3 About half of Cabela’s sales are associated with hunting related merchandise, and one third of sales are associated with guns and ammunition as well.4 These two statistics do have overlap, hunting merchandise does include guns but not all guns are used for hunting type deal. From 2008 through 2013 stock prices have surged by 440%.3 This gives Cabela’s a market value of $4.7 billion.3 Reasons for the sharp increase in value stem from the rise in gun sales. More restrictive gun control legislation has been discussed lately and this has caused surge for consumers to buy guns before there are the new gun control measures. Gun sales are always welcomed by Cabela’s but there are low profit margins.4 Even with the low profit margins, gun sales do drive more business overall to Cabela’s. Ammunition sales and gun accessories benefit from higher gun sales. Cabela’s also benefits from the

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