What type of business market customers does camelbak sell to

Assignment Help Business Management

Reference no: EM131266663

In 1989, Michael Eidson probably never imagined that his homemade, do-it-yourself fix for dehydration during long cycling races would evolve into the world's premier hydration device for outdoor enthusiasts, soldiers, and law enforcement personnel. That is exactly what happened to the CamelBak backpack, however.

The first version, which used medical tubing to flow water from an intravenous drip bag that was insulated by a sock and strapped to the back of his shirt, was born as most inventions are-out of necessity. The special pack made it possible for Eidson to take in fluids while sitting upright without having to sacrifice speed by reaching down for a water bottle during a race. The packs gained fame during the 1991 Gulf War as extreme sports enthusiasts in the U.S. Special Forces carried their personal CamelBaks into combat during Desert Storm.

Thereafter, the CamelBak name would be forever associated with extreme performance and the U.S. Armed Forces. By 1995, Eidsen sold the company for $4 million. Its buyer, Kransco, introduced the first camouflaged models, and the packs continued to gain acclaim. In 1999, two years after buying his first CamelBak pack, cyclist Chuck Hunter left Lockheed Martin to join the upstart company in hopes of growing its military business. He promptly moved the company to the Sonoma Valley, built a research and development center, and leveraged his experience in the defense industry to launch a military-specific line of packs.

Hunter partnered with DuPont to help CamelBak develop the Low Infrared Reflective (LIRR) system. LIRR applies specially developed materials to a pack's compartments, buckles, and straps to shield soldiers from enemy detection systems. As advanced identification and kill technologies are increasingly being deployed on the battlefield, individual protection applications like the LIRR will be the camouflage of tomorrow.

Other CamelBak innovations include the WaterBeast reservoir, a fluid storage system that boasts 30 percent more rigidity than other packs on the market. The WaterBeast has the ability to withstand lengthy field engagements, aided by its silver-ion reservoir and tube linings that eliminate 99.99 percent of all fungus and bacteria in the water delivery system. The WaterBeast reservoir is now a standard feature on all CamelBak packs, as is the company's proprietary drinking nozzle, or bite valve, which must withstand 10,000 compressions to guarantee it will last through 3 years of combat use.

Another CamelBak first is its CBR 4.0 pack system, which is specially designed to perform under chemical or biological weapons attack. The CBR 4.0 took 5 years to develop, and like all CamelBak military and law enforcement products, it was created to meet the specific requests and requirements of the target market. Since its introduction in 2005, the U.S. Special Forces, New York Police Department, U.S. Secret Service, Department of Health and Human Services, and a myriad of HAZMAT, law enforcement, and government agencies from around the world have adopted and deployed the CBR 4.0.

Though CamelBak specializes in offering extreme performance packs for the military, industrial, and professional markets, it also sells a variety of products for hunting, extreme sports, recreational, and "light" law enforcement applications. Having claimed more than 90 percent of the military market for hydration packs, product manager Shawn Cullen likens CamelBak to Kleenex: "Everyone calls a hydration system a CamelBak," he says. Ironically, the company's biggest customer is its biggest competitor.

While it continues to use CamelBaks, the U.S. Army is working with a former supplier to develop its own version, most likely in an attempt to reduce costs. ©PR NEWSFOTO/CAMELBAK PRODUCTS, LLC A At prices up to $200 for combat-ready systems, one thing CamelBaks aren't is cheap. But then again, neither is CamelBak itself. Its strong product lines, history of innovation, secure strategic relationships, and dominance in government and institutional markets drove its value to over $200 million when investment bank Bear Stearns Company bought the outfit from Kransco in 2003-not bad for a product that started life as an intravenous fluid bag wrapped in a sock.

1. Discuss how business relationships and strategic partnerships have helped to increase the value of CamelBak's products and the business itself.

2. What type(s) of business market customers does CamelBak sell to?

3. Review the types of demand that most influence business markets. Which ones do you think are most important for CamelBak to consider in its marketing strategy? Why?

4. What type of business product is a CamelBak backpack?

Reference no: EM131266663

Questions Cloud

Calculate the resistance values of a 4-section starter : A 20 kW, 500 V shunt motor has an efficiency of 90% at full load. The armature copperloss is 40% of the full-load loss. The field resistance is 250 Ω.

Measure millennial productivity in the workplace : How should we measure millennial productivity in the workplace compared to baby boomers and how is their productivity different than those from baby boomers?

Application of management functions to a case study : You are employed by a 240-bed urban medical center. You directly supervise 30 staff Physical Therapists in the Rehabilitation Department in which you are the Department Head (DH).

Evaluate how successful the author was in convincing : Clearly state in your own words the "surprise ending" in the reading you selected. Clearly identify the point in the reading when you realized that there were elements in the reading that surprised you. Not all of the surprises come at the end.

What type of business market customers does camelbak sell to : Discuss how business relationships and strategic partnerships have helped to increase the value of CamelBak's products and the business itself.

Cost of the furnishing as a bonus depreciation : In the year 2006, Jay Smith (336-55-1983) paid $125,000 for a condominium that he uses as a rental property. In 2011, he spent $36,000 furnishing the condo. He uses regular MACRS to depreciate the furnishings. In 2011, Jay deducted 50% of the cost of..

Myth in culture and the arts : Compare the original myth with its presentation in the chosen medium - Examine how a myth influenced or inspired something specific in culture or the arts.

Method of ethical decision making : Write a paper (1,250-1,500 words) that describes how to use the method of ethical decision making, reviewed in the module, to help resolve this ethical dilemma. Address the following to generate your conclusions about how you would proceed:

Calculate the efficiency of each machine : The armature resistance of each machine = 0.02 Ω. State the assumptions made.

User Account

All Pages