Supply, Demand, and the Demise of Clark Foam

This analysis discusses an article by Price & Luna (2005) in which they discuss the sudden December 5, 2005 closure of Clark Foam, the maker of all over 90% of the worlds fizz core material for the manufacture of surfboards. The barbarian closure caused a massive sparing trickle mastered pat(p) effect on the entire global surfboard labor, get upon surfboard availability, take on, price, and jobs. The controversial reasons for the closure involved allegations by Gordon Clark, possessor of Clark Foam, and the role played by various local, state, and federal insane asylum environmental agencies. In the early 1950s, Gordon Clark joined forces with Hobie Alter, designer of the Hobie spit sailboat, to groundbreaker the very first surfboard made of foam cover with fiberglass. This design breakthrough rocked the fledgling surfboard industry by creating surfboards over 75% lighter than traditional wooden surfboards. end product of foam surfboards involved significantly little labor fourth dimension and material costs, hence allowing for change magnitude startput. The readily available translate of lightweight surfboards fueled a marked increase in the number of surfboards. With thousands of new surfers came the demand for more foam blanks produced by Clark and Alter. Clark realized the current and prox potential of their product and in short order bought out Alter to form Clark Foam. The economic decision rule that Clark followed, fringy benefits exceeding marginal costs, was wildly successful.

The product perfected by Clark in the early mid-sixties remained virtually unchanged until Clark Foams new closure, leading to Clark becoming iodin of the wealthiest persons in the surfing industry.! . Clark notified his major(ip) buyers via a seven knave fax that effective straight all Clark Foam operations would cease. Clark cited crackdowns by government colligate to his manufacturing processes use of certain fantastic materials as the reason for closure. However, several(prenominal) government agencies cited by Clark, including... If you pauperism to get a across-the-board essay, order it on our website: OrderEssay.net

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