Marinemax Case Summary

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10. Buyers (and their bargaining power) “We believe that many boat retailers are encountering increased pressure from boat manufacturers to improve their levels of service and systems, increased competition from larger national retailers in certain product lines, and, in certain cases, business succession issues.” (pg. 6) The 10-K names Brunswick, the world’s largest manufacturer of marine products, as the company’s main supplier of inventory. With Brunswick’s large customer base in such a diffused market, they have the bargaining power to make certain demands of its buyers that suppliers without such power could not, such as the improvement of their service levels and information systems. Because of MarineMax’s position as the largest recreational boat dealer in the U.S., these demands pose no problem to the company’s operations. Moreover, Brunswick even offers MarineMax interest assistance to purchase its products, showing on MarineMax’s financial statements as a reduction of inventory cost and their related sales costs. (pg. 16) 11. Threat of substitute products/services (and their influence on the company)…show more content…
retail boating goods. An important advantage to this is the significant amount of resources available to develop and provide products and services that will create the best customer value. Their ability to offer a full range of services, own facilities in crucial retail locations, and provide customers with many other valuable services would be greatly reduced without these high levels of revenue and in turn resources available for allocation. Because of these resources, MarineMax is able to purchase inventory at higher economies of scale, resulting in lower costs of sales and higher net income. MarineMax had a 2014 net income of $11,272,000, which will contribute to their future ability to offer customers the best level of service while maintaining

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