Synopsis of Head Ski - Synopsis of Head Ski Head is a...

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Synopsis of Head Ski Head is a venerable ski (used by several current champions) but not a venerable company. A product is not a business. The case lays out first the firm’s rise from Howard Head’s “garage” to a major high end brand in skis in the middle 60’s and then its ideas about growth after this happy time. It should be noted that the firm was profitable but not at all impressive financially, primarily because of its high SG & A costs. At the time of the case, its goal was to expand its top line 20-25% per year, perpetuating its experience in its early years. The means to achieve this end was business diversification. To understand what happened to Head, it is important to understand what made it successful initially. Its skis tracked and turned unusually well, allowing beginners and intermediates to ski much better than they had before. Moreover, Head invested repeatedly in improving product performance and expanded its product line across ability levels so that expert and novice skiers shared a common ski technology. Head built its brand through careful
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