Jim Castelo’s lifelong hobby has been racing small sailboats. Jim has been successful both at the sport and in the design of new pieces of equipment to be used on small sailboats to make them easier to sail and more effective in racing. Jim is now thinking about starting a mail-order business in his garage to sell products he favors, as well as some he has designed himself. He plans to contract out most of the manufacturing for the parts and equipment to machine shops and other small manufacturers in his area.

REQUIRED: Develop a strategic analysis for Jim’s new business plan. What should be his competitive position; that is, how should he choose to compete in the existing market for sailboat supplies and equipment? How is he likely to use cost management information in building his business?