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
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the outdoor recreation retail industry. The following analysis will look at the retail industry of outdoor recreation and evaluate it based on a five forces analysis. PEST Analysis Political and Legal Cabela’s has an extensive legal department for several reasons.
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…
ideas. The government can create economic policies that will aid in the growth of businesses. Cabela’s, has been helped by the US policies that enables it to advance its chain of stores. The support given to Cabela’s by the US government can be seen in the low interest rates currently in place. State sales tax on Cabela’s sales are different for each location of the store. Online purchases for Cabela’s merchandise will apply the state tax for the shipping address. States employ different sales tax rates and Cabela’s complies with each individual state’s sales tax rate. Age requirements and background checks are an issue that can be placed in either legal or political. Certain states have tougher age requirements for certain items as well as stricter background checks firearms and ammunition. Economic Cabela’s has seen large increase in profit since 2008.
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
increase in outdoor lifestyle living seen in the show Duck Dynasty. Societal Cabela’s takes a strong stance on their social responsibility. Even though in recent times Cabela’s has come under fire for their association with gun sales. Cabela’s has had longtime support for the National Rifle Association. This association with the NRA has created both a negative and positive public view. People who are in favor of the NRA think highly of Cabela’s but people who oppose the NRA view Cabela’s with negativity. Since Cabela’s has seen high profit from gun sales some critics associate Cabela’s with gun violence. 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. This has caused Cabela’s to be criticized for receiving a profit on gun violence. Other than Cabela’s association with gun violence the public perception is relatively high. Outdoor lifestyle has always been popular in the US. Other societal issues that Cabela’s is associated with include breast cancer awareness. Cabela’s participates with breast cancer awareness during the month of October. Cabela’s introduced new pink merchandise to support the cause. Cabela’s also avoids using Conflict Minerals in their merchandise.5 Conflict Minerals like blood diamonds are avoided by Cabela’s. Cabela’s will not use any minerals that support conflicts. These are just a few examples that Cabela’s does to give back to society. Technological Cabela’s has set the stage to take full advantage of the increasing technology sector. Online sales have contributed to Cabela’s significantly. Cabela’s IT department is continuing to grow and become more efficient. The IT has created a user friendly web page that aids in sales. Cabela’s online market is so successful that they based openings of two new stores in the Denver area.3 Sales were so high that Cabela’s decided it would be a safe and profitable decision. Managing the inventory within Cabela’s is another major area for Cabela’s to further develop. Inventory management improves the productivity and efficiency of Cabela’s. Accurately forecasting sales on certain items improves profits.6 Cabela’s is always looking for new and improved products. New technology improves the quality and efficiently to make merchandise. Cabela’s is always looking for new products and has an extensive in house R&D department.6
Effective price and place strategies are essential for the economic success of current day retailers. Fortunately, Cabela’s has been at the forefront of pricing and place strategies that best serve the company and more importantly, its customers. The challenge for Cabela’s is to ensure the continued refinement and development of pricing and place strategies to remain relevant, because the success of current strategies do not guarantee continued future
At the dawn of the Twentieth century, cities, like Dayton, had factories being erected almost every day. The Industrialism period brought many people to cities looking for jobs. As cities became crowded and people overworked, a movement began to spend more time outside enjoying nature and all it has to offer. This created an opportunity that Charles W. Shaeffer saw, and jumped on (Dalton 11). He gave way for the idea of a club for those to spend time together, outdoors, to be involved with one another and to bring the community together as one. In the age of industrialism, in this city of 1000 factories, Dayton Canoe Club helped spark a new found love of outdoors for those in the city, and continues to do so today, 100 years later.
Market Analysis Summary The global sports and fitness clothing market is expected to soon reach over $125 billion dollars (PR Newswire, 2015, June 26) and individuals across the U.S. are becoming more active (Institute for Health Metric and Evaluation, 2013, Jul 10). The breadth of the overall market covers many subsets of products and consumer groups. Target segment. There are two primary segments in the market; sports apparel and fitness clothing.
My conclusion is that the protagonist should buy more stock of Costco Wholesale Corporation as she concluded the company is growing at manageable rate without relying on debt or equity. They are with high sales or profit, low labor costs, and consistent growth. Costco seems to be a low risk stock that is performing well with long term stability for more
John Deere is not only a name brand of equipment, but also he is a persons that created many different types of equipment. John Deere had built the company that many people know of which is John Deere.
The Economist (2015) article also states that since Obama’s election into office, there has been 450% increace of American gun makers Smith & Wesson’s share price.
I have been bow hunting since I was about 8 years old. I am going to go over the basic steps and necessary equipment needed to start becoming a successful bow hunter. Some of the key things you will need during this are a decent set of camouflage, a compound hunting bow and a place to hunt. Despite the time it takes to be successful; bow hunting can be very rewarding.
Thankfully, I had been able to keep myself spoiler free as it relates to “The Deer Hunter.” For a movie with this reputation and fame, I was quite proud of the fact that I hardly knew what it was about, how it ended or even how its famous Russian roulette scene climaxes. I was excited to finally see this movie, in small part because it was the last film I needed to see to have watched every best picture winner from the 1970s. But, to put it bluntly, “The Deer Hunter” disappointed me.
Another aspect of this debate is in fact, the lobbyists that are pushing for more lenient or tighter gun-laws. It seems that the lobbyists that wanted stricter firearm-related laws are the ones who have witnessed the damage that criminals and the mentally unstable can really do with a gun in their hand. Those pushing for leniency when it comes to gun legislature state that firearms are trying to protect their right to carry an essential tool for those who want to venture the countryside in search for animals to shoot down for food, clothing or sport. The last aspects of the controversy are the federal and state laws that have decided whether or not concealed wea...
In mid September 2005, Ashley Swenson, the chief financial officer of this large CAD/CAM equipment manufacturer must decide whether to pay out dividends to the firm¡¦s shareholders or repurchase stock. If Swenson chooses to pay out dividends, she must also decide on the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves a review of the many practical aspects of the dividend and share buyback decisions, including(1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout and share repurchase decisions.
Main drivers for US profitability has been within women shoes, broken down in sub categories of casual (17%), dress (13%), and athletic (10%) shoes, composing roughly a 40% demand of the market. However, domestically men’s athletic shoes represent 20% of the market and show signs of increase, globally men’s athletic shoes make up 30% of the market. This increase in sales within the athletic sub-category can be lead by the increase in demand for shoes that allow easy, fast movement. Studies show that ages within 18 and 45 in the U.S. have increased physical fitness by 17% since 2006. According to the Outdoor Industry Association, outdoor footwear grew...
The Leisure and Recreation Industry The leisure and recreation industry is an industry, which has grown and affected the economy in a big way. The industry is one of the fastest growing industries in the UK. The leisure and recreation is defined in many ways for example leisure is referred to the time spent outside employment and other essential activities such as sleeping. Recreation, where as referred to the type of activities undertaken during leisure time? The leisure and recreation industry can be described as a whole range of activities taken in people's free time.
Immediately, as my dad and I was walking to the deer stand, my thoughts were that this hunt already felt like any other night hunt I had ever been on. My dad and I together chose which stand we would hunt from the choices on the board. We arrived at the box stand, which was fifteen feet tall, then we climbed in and got comfortable. In the meantime, we were looking around to find any sign of a deer. Meanwhile, as we were sitting quietly in the stand, we suddenly heard something. We could tell that the noise was something running through the trees extremely fast! Suddenly, there she was, a doe, creeping out from the bushes. At that moment, I was only able to see her head. I was getting so nervous, and I didn 't know what to do; however, my dad told me to stay calm and breathe. As she was walking into the field, stopping along the way to eat, I prepared my gun in order to shoot. My dad told me to take the shot whenever I was ready, so within the next couple of seconds I pulled the trigger. BOOM! She’s down! I had shot her; however, I knew I hit her, but she ran
2006). To me recreation is having fun with people that makes you laugh and smile. Outdoor recreation, to me, means to remember the joy that nature brought me at five years old with friends and family exploring what Mother Nature provides us and feeling youthful again. Sometimes this would be exploring the countryside, seeing what humanity has not touched, and running around the fields at top speed. Finding a new path to take or just exploring somewhere new by hiking to a swimming hole, or even just walking around somewhere new and taking in all the details so you can recreate them in a drawing to share with people and to look back on years from now. During my experience simulation, I walked along paths in the forest by my house and took in every detail that nature provides. I would look at a fallen tree and remember being at my cottage climbing a falling tree and wanting to hang off it. I saw all the leaves changing colour and remembered cleaning up the grounds of my family farm and then wanting to jump into the colourful pile. My experience gave me memories of when I was younger and it allowed me