Burton

Burton

Burton Snowboards takes surfing to the mountains, with premium snowboards and equipment. Jake Burton, the world’s first snowboard maker, founded the company in 1977 in Londonberry, Vermont. Despite it being small and privately owned, Burton is the industry leader in snowboards and equipment controlling 40% total market share in the winter sports industry. Burton is a global business with its main headquarters in Vermont, Japan and Austria and worldwide distribution capabilities in over 35 countries. Burton Snowboards operates three factory outlet stores in Vermont, Massachusetts, and Austria. To create buzz marketing, Burton encourages newbie’s to experience the slopes with its Learn To Ride (LTR) line of equipment and programs at ski resorts nationally. In the past few years, Burton has started independent companies, which have their own individual identities and products. Burton has also created one of the most extensive online shopping experiences for its clientele. (www.burton.com)

Strengths

Burton attributed to the development of the sport of snowboarding, as it was the first and oldest manufacturer. The company has a loyal customer base and an established retail distribution channel. Burton provides customers with an interactive online website. In order to provide help to mountain resorts to attract and retain snowboarders, Burton’s primary customer base, they have created integral relationships with resorts by providing cultured programs for snowboarders, such as (LTR). (www.hoovers.com, 2004) Another attribute to Burton’s success is its strong distribution system. Burton has eliminated the intermediary channels by shipping its products directly to specialty shops with the use of the Burton Interactive Network, launched in 1999. The ordering system offers retailers the ability to access the status of their orders, marketing material, credit standing, and re-order capabilities. This speeds up the entire distribution process from its factory to the retailer. In Japan, Burton has made it easier to process direct feedback from the riders, meeting their specific needs. (www.hoovers.com, 2004)

Weaknesses

As Burton is a privately owned company, it is not as competitive as other companies are, when compared to public corporations that have financial support from shareholders. Burton reinvests in its company with only its profits, yet with shareholders backing, investment could be higher. Burton expanded by its family by creating four parent companies within two years of each other. The short time committed to, and before starting, each new addition may not have allowed for enough attention to each. (www.hoovers.com, 2004)

Opportunities

Burton created and owns the US Open snowboarding championships, in addition to the enormous success in the snowboarding industry; it has the potential to grow beyond the U.S. The possibility to create similar events