Ask Business Management Expert

Extreme Exposure Rock Climbing Center Faces The Krag
For the past five years, Extreme Exposure Rock Climbing Center has enjoyed a monopoly. Located in Sacramento, California, Extreme Exposure was the dream of Kyle Anderson, who has been into freestyle extreme sports of various types, including outdoor rock climbing, hang gliding, skydiving, mountain biking, and snowboarding. Now in his mid-30s, Kyle came to realize in the year of his 30th birthday that after three leg fractures, two broken arms, and numerous dislocations, he could no longer participate regularly on the extreme edge. So, he found an abandoned warehouse, recruited two investors and a friendly banker, and opened up Extreme Exposure. Kyle's rock-climbing center has over 6,500 square feet of simulated rock walls to climb, with about 100 different routes up to a maximum of 50 vertical feet.

Extreme Exposure's design permits the four major climbing types: toproping, where the climber climbs up with a rope anchored at the top; lead-climbing, where the climber tows the rope that he or she fixes to clips in the wall while ascending; bouldering, where the climber has no rope but stays near the ground; and rappelling, where the person descends quickly by sliding down a rope. Climbers can buy day or monthly passes or annual memberships. Shoes and harnesses can be rented cheaply, and helmets are available free of charge as all climbers must wear protective helmets. In addition to individual and group climbing classes, Extreme Exposure has several group programs, including birthday parties, a kids' summer camp, and corporate team-building classes.

Kyle notices a newspaper article about another rocking climbing center, to be called The Krag, that will be built in Sacramento in the next six months. He notes the following items about The Krag that are different from Extreme Exposure:

(1) The Krag will have climbs up to a maximum 60 vertical feet,

(2) it will have a climber certification program,

(3) there will be day trips to outdoor rock-climbing areas,

(4) there will be group overnight and extended-stay rock-climbing trips to the Canadian Rockies, and

(5) The Krag's annual membership fee will be about 20% lower than Extreme Exposure's. Kyle chats with Dianne, one of his Extreme Exposure members who is in marketing, during a break in one of her climbing visits. Dianne summarizes what she believes Kyle needs to find out about his current members:

1. What is demographic and rock-climbing profile of Extreme Exposure's members?

2. How satisfied are members with Extreme Exposure's climbing facilities?

3. How interested are its members in: (a) day trips to outdoor rock-climbing areas, (b) group overnight and/ or extended-stay rock-climbing trips to the Canadian Rockies, and (c) a rock-climber certification program?

4. What are members' opinions of the annual membership fee charged by Extreme Exposure?

5. Will members consider leaving Extreme Exposure to join a new rock-climbing center with climbs that are 10 feet higher than the maximum climb at Extreme Exposure?

6. Will members consider leaving Extreme Exposure to join a new rock-climbing center with higher climbs and a lower annual membership fee?

For each of Dianne's questions, identify the relevant construct and indicate how it should be measured.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92032004

Have any Question?


Related Questions in Business Management

Name a company that addressed a recent ethical problem in a

Name a company that addressed a recent ethical problem in a positive way. Also, explain how or if this positively affects us as a community?

When it is appropriate to use the trade-off process what

When it is appropriate to use the trade-off process. What conditions apply, and the technical evaluation criteria that might be used?

Need help with a essay with the following phrase for

Need help with a essay with the following phrase for analyzing : " Capitalism is at the heart of how people and organisations are managed in contemporary society" May i ask for a better explanation of the question? Also ...

How could these three tenets of the auburn creed be used to

How could these three tenets of the Auburn Creed be used to motivate others: "I believe that this is a practical word and that I can count only on what I earn. Therefore, I believe in work, hard work." "I believe in educ ...

How can these two tenets of the auburn creed by used in

How can these two tenets of the Auburn Creed by used in addressing teamwork issues: "I believe in honesty and truthfulness, without which I cannot win the respect and confidence of my fellow men." "I believe in the human ...

Discuss the advantages of having and interacting in a

Discuss the advantages of having and interacting in a diverse workplace. Consider the wide range of ideas and perspectives that a range of team members bring to a team, that are of differing ages, ethnic backgrounds and ...

Parmigiano-reggiano global recognition of geographical

Parmigiano-Reggiano: Global Recognition of Geographical Indications What historical factors have helped support the consortium's claims for the geographic specificity of Parmigiano-Reggiano and Parmesan? What are the eco ...

Communication planthis communication plan will be a roadmap

Communication Plan This communication plan will be a roadmap on how the new division will best be able to communicate with Biotech's corporate headquarters, suppliers, other divisions, and internally. This should lay out ...

Discuss strategies to obtain feedback from a customer and

Discuss strategies to obtain feedback from a customer and clients when working in sales.

Describe different networking methods and the advantages

Describe different networking methods and the advantages and disadvantages of them?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As