The Banatao Brothers Build Boards for the Green Wave - Assignment Example
1.2 Cost In USA cost of any entrepreneur to run the shop is at least $400 while average hourly manufacturing cost for Asian competitors is $2.50. Minimum purchase price for polyurethane board in the country is around $300 but Asian competitors can manufacture the same product at five times a cheaper price. 1.3 Stringent Business Environment Domestic surf board entrepreneurs are searching headway to compete against cheap import from Asia but till now there is no sign of relief for them. In 2005, surfboard blanks a domestic manufacturer closed their business due to stringent cost competition from Asian counterparts. Government announced hike in the raw material cost to manufacture due untamable recession started in 2007. Clark Foam was the major supplier of polyurethane blanks for surfboard manufacturers but after recession price of polyurethane blank has increased. In this condition Clark Foam ceased production in the year 2007.
