Northeast Mountaineering


Northeast Mountaineering

The company that we are studying is
Northeast Mountaineering (http://www.nemountaineering.com/)
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Assignment 1:
This is a secondary research assignment. Answer to section 4 all questions

Section 4: Opportunity Analysis

4.1 Industry Analysis – Outdoor Climbing Market

The industry analysis is not intended to provide specific detail into the businesses operations,

marketing or finances of the business, but rather to provide a basic understanding of the industry in

which the business operates and the trends in the marketplace. While it is important to understand the

past and current, it is also equally important to understand the future. As such,

• Industry trends help to identify opportunities to create a product or service that will satisfy the

needs of a particular customer base. There should be a natural flow from the industry trends to your

product or service;
• Trends can provide you with strategic information that can help you be competitive and provide

direction for growth in new products and company strategy;
• Trends can assist you in determining your longevity in the market. Most products follow a product or

industry life cycle curve. Knowing where your product or industry fits on this curve will help you in your

marketing and promotional strategies.

When writing this section of the business plan, answer these:
• What is the current size (i.e., dollar sales of programs) of the outdoor climbing market in the U.S.?)
• What has been the trend (increase or decrease) in the size of the outdoor climbing market in the U.S.

over the past 5 years? ( provide a table displaying the dollar sales and the annual percentage change

for the last five years )
• Discuss the different types of factors that have driven the trend in revenues during the last 5 years.

Factors to consider include: [note that not all these drivers may be relevant for this industry]
o Demographic Forces (changes in the population in terms of age, occupation, size, gender, lifestyle,

psychographics, location, or other characteristics )
o Economic Environment (factors that affect consumer buying power and spending patterns,

employment patterns, use of leisure time )
o Technological Environment (forces that create new technologies, creating new product and market

opportunities)
o Legal/Political Environment (laws, regulations, government agencies, and pressure groups that

influence and limit various organizations and individuals in a given society)
o Cultural Environment (institutions and other forces that affect society’s basic values, perceptions,

preferences, and behaviors)

• What is the outlook of the outdoor climbing market for the next five years? Do you think the same

trends you identified will equally play an important role? Explicitly draw conclusions about the growth

of the market for the next five years. Create an exhibit showing anticipated dollar sales and growth

rates for the next five years.

4.1.1 Mountaineering Guide market

This section requires you to understand the role that mountain guides play in the outdoor climbing

market. Your understanding of this section will also allow you to address the types of new discipline

skills that you would like to add to Northeaster Mountaineering as they attempt to expand to new

customer groups. Address the following questions:

• How has the number of mountaineering guides changed over the last five years?
• Discuss the different organizations/associations involved in the accreditation for mountain guides

and the issuance of climbing certificates

order

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