Sher-Woodfounded its brand on production of high-end hockey sticks to maximizethe performance of the player. Sticks and Skates are the majorequipments driving the hockey industry. The company is known to be aleader in quality hockey sticks globally.
has started losing its market share due to stiff competition fromlarge industry players such as Reebok and Easton,Bauerwhich produces high quality and affordable hockey sticks and otherequipment. In addition, the high cost of producing of high qualitysticks and the drop in retail prices of hockey sticks are resultingto loss of revenue for Sher-Wood. Despite the general growth in thesports industry, the market for hockey equipment started recording anegative growth in the last few years, and is projected to dropfurther in the coming years. This is as a result of the high premiumpaid for participation in hockey as compared to other team sports. Inaddition, hockey equipment popularity largely depends on celebrityendorsement. Operatingin an oligopoly market is also a major challenge facing .Reduced competitive advantage resulting from economies of scale andcapital limitations are the major issues in an oligopoly.
Outsourcing is another majorissue facing Sher-Wood. Its plan to outsource to Sher-Wood China isfaced with problems. First, the company will face cultural issues,miscommunication, and the need for additional training to cover thedifference in technology which will affect the company’s productionof quality sticks. Besides, the company’s image stands to be dentedas outsourcing will deny domestic employment. Whenthe company out sourced its production of hockey sticks to -Drolet in Ukraine, it lost its top elite players like JasonSpezza move to competitor Reebok.