Sport Obermeyer – Case Review
In this case study we discuss the problems faced by Sport Obermeyer, a fashion skiwear manufacturer. Every year the company had to produce a new line of clothing according to the latest trends and fashions. The success of the company depended on how well Sports Obermeyer was able to predict market response to different styles and colors. Intense competition had made forecasting really difficult. The two scenarios that resulted were products in style sold out and the products not in style were sold at prices lower than the manufacturing cost. China was where one third of Sports Obermeyer’s products were being manufactured and this year half of the products were being manufactured in China. Since the operations and production facilities are subcontracting the manufacturing to different facilities in China, Sports Obermeyer is really concerned about allocating production between factories. Quality and reliability were also a big issue. Obersport Ltd was a joint venture to coordinate the production of Sport Obermeyer products in the Far East. It was also responsible for fabric and component sourcing for Sport Obermeyer’s entire production. The new facility in Lo Village, which was run by Alpine Ltd, was a subcontracted manufacturing facility. Alpine generated 80 percent of its business from Sport Obermeyer. Apline Ltd invested a lot of money in the new facility and was hoping to get more business from sports obermeyer. The main competitor of Sport Obermeyer which made 32 million dollars in the year 1992 was Columbia sport. Sport obermeyer divided the adults where they had only 11 percent market share into 4 types; they are the Fred, Rex, Beige and Klausie. From the graphs we notice that there is a rise in the Storage keeping units from the last 5 years, Number of styles remained constant and the average sizes per person had increased considerably. The approach the management was divided into two between the father who started...
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