Subject area:                      Competitive Strategy, Corporate Level Strategy, Growth Strategy

Region:                                   United States

Industry:                                Fishing

Company:                              Cheeky Fishing

Decision Maker:                 Ted Upton, CEO of Cheeky Fishing

Dilemma: In late 2016, Ted Upton, CEO of Cheeky Fishing, based in Arlington, MA, was facing the dilemma of growth for the Company’s spin reel division. The problem was to decide how to strategically invest and market the spin reel division without affecting the growth and huge success that the fly reel division has had. Operating as a small business, human capital is limited and time and resources need to be allocated efficiently.  The stakes for making a right decision were high: if the problem wasn’t solved soon, the company might need to discontinue the spin reel division of the Company. The decision had to be made soon, as the window for prime buying season was about to open and it was now or never.

Ted Upton and his team have to make a decision whether to continue with the two products, the fly reel division and the new spin reel division, or drop the spin reel division and focus on the Company’s current fly reel division. It’s imperative that Cheeky Fishing create a comprehensive plan to garner the business of the spin reel industry before the prime Spring buying seasonal. The company has two main options: to develop and strategically implement a strategy to market the spin reel division without affecting the growth and resources that have enable the continued  success that the fly reel division has had. On the other hand, he could decide to liquidate the spinning reel inventory through a large wholesale buyer and devote all the Company’s resources to the fly reel division; its current core business. 

While there are several risks of committing more resources to the spin reel division, Ted sees a great potential for the company to grow and expand through that channel. However, if things don’t go as expected with the spin reel division, the Company could put in danger their current competitive advantage of being a cash heavy, nimble company that can move quickly on strong opportunities. After all, a decision needs to be made by the 2nd quarter of this year which is the prime season for fishing product sales. Should Ted Upton follow his instincts and expand the spin division? Or should he take the safest route and focus only on the fly reel division?