Question
Planning Calm Seas case Calm Seas is a small Canadian manufacturer of ocean kayaks. They also sell kayaking accessories including paddles, bilge pumps and other
Planning Calm Seas case Calm Seas is a small Canadian manufacturer of ocean kayaks. They also sell kayaking accessories including paddles, bilge pumps and other essentials. They are located in Nelson, B.C., where they have both their plant and their administrative office. They have about 60 employees in total and have been in operation for over 20 years. They sell their products to retail stores in North America and to distributors in Japan, Germany, Greenland, Norway, New Zealand and Australia. They also sell directly to outfitting and tour companies, to groups that teach people how to kayak and to educational institutions and sports organizations. Calm Seas makes ocean kayaks out of 2 very different materials. One is called "composite". These materials are fibreglass, kevlar or graphite laminates. The other type of material is rotationally molded polyethylene (plastic). Very different production methods and materials must be used in the making of these two different types of kayaks. Calm Seas has different types of models in both materials (for example, double or single seating, smaller day kayaks, bigger kayaks for longer, multi-day trips). The kayaking industry is competitive. Manufacturers must develop, test and market at least one new model every year. Since there are both national and international competitors in the industry, it is also very important for Calm Seas to maintain and expand their network of retail stores and distributorships. Production is also a very important process at Calm Seas, since they pride themselves on making the best- quality kayaks possible, through continuous quality improvements. Calm Seas has an excellent reputation for quality. Their prices are fairly competitive, although they are a bit higher than their two main competitors. Feedback from clients generally indicates that customers will buy the Calm Seas product at a higher price because they can be assured of a good quality product that is also shipped out by the agreed- upon time. Calm Seas ships their products to their various clients around the world. There are a few competitors in the world, but two main ones. One is located in Australia and one in the United States. These other companies offer very similar products to the products from Calm Seas. A client looking to buy a kayak or a number of kayaks, will balance price, quality, company reputation and sales representative relationship in their purchase decision. Business has been steadily growing over the past 10 years, as more and more people are getting interested in kayaking. It is both a sporting and a leisure activity. For a person who wants to get out paddling on the water, and who doesnt have much technical skill, ocean kayaking is the perfect activity. The sport part of the kayaking market mainly centres on river kayaks, which Calm Seas does not manufacture. The river kayak market involves a very different clientele, a different material and different manufacturing processes. These kayaks are small and very light. It takes a lot of skill to manage a river kayak. The river kayak enthusiast is the kind of person who would shoot down steep waterfalls, manuoevre through rapids and do water dancing with their kayaking. Calm Seas has decided not to go after this market. The two other types of kayaks available to consumers are the inflatable and the foldable kayak. The inflatable is also called a sit-on-top. It is made out of plastic and is often the type found at all-inclusive resorts or other vacation properties. The foldable kayak is made of lightweight fabric and literally folds down to the size of a large suitcase. Both of these kayaks are considered specialty kayaks and are not something Calm Seas wants to get into. The employees of Calm Seas vary in age and in gender. About 40% of the workers are female and the age range is from 22 to 63. The average age of the employees is 28. They are all involved in sports and kayaking. They are non-unionized. There are some employees who have been there since the beginning and some who have just joined. The average length of service for the staff is about 8 years.
Question:
In no more than 200 words, discuss how competitive advantage relates to/affects organizational planning.
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