Cannondale Corporation - 2000
Case Questions
1. Market
A. Clearly and specifically define this business as it now exists and its market in one clear and specific sentence. This must be a complete definition (customer, product/service, level in chain, and geographic area at a minimum).
B. Provide full support as to why this is the best definition. Address each part of the definition.
C. Fully analyze this market. For example, what is its growth rate, how large is it, approximately what is the company's share of the market, and then briefly note who are the major competitors and what are their positions.
D. What does this theory recommend for the company? Explain.
2. Life cycle
A. Fully analyze from the standpoint of Life Cycle theory. Clearly define and support the life cycle stage for the market you defined in #1. You must provide clear and convincing evidence for your position.
B. What does this theory recommend for this company. Explain in both Hofer terms and David's strategies.
3. BCG
A. Develop a BCG matrix for the company. Clearly and fully state facts to support your conclusions for each axis and carefully draw the chart to scale. Clearly specify what measure you are using and justify your use of that measure. Be sure to use the same industry you defined in #1.
B. What does this theory recommend? Explain in BCG terms. Do not use David’s wording or recommendations.
4. Recommendation:
A. What one major strategy should they pursue now? You must be specific (not generic) and support fully. Support for your choice being the most appropriate choice is critical. Use the following outline to answer this question:
1. State your recommended strategy.
2. Explain your strategy.
3. Support why your strategy is appropriate.
4. Support why your strategy is the best strategy.
B. Clearly relate and justify your proposed strategy to each tool above.
1. Relate to the market analysis in #1
2. Relate to the life cycle analysis in #2
3. Relate to the BCG recommendations in #3
See FAQ for answers to frequently asked questions about this case.
- Q1 - 05/22/2002 -