Introduction to initial public offerings:

Usually, a company’s IPO is an inflation of the true value of the company. This inflation is able to occur through a multiple step process, beginning with creating excitement and buzz about the company before it becomes public. Once the company has been hyped up and gotten the attention of the media, only a small amount of shares are offered, which creates a false sense of scarcity. When there is a scarce supply with a high demand, the price of these shares skyrockets, which accounts for the inflation of the company’s legitimate value.

Zynga’s IPO:

Even though this entertainment/tech company followed the steps outlined above, its shares suffered a decrease in price once it went public. Opening around $10 a share, there was a decrease of around 30 cents by the end of that day. Why did this happen? Critics believe it is because of the extremely competitive sector this company is in. If it fails to continue to create and innovate, there is no future for Zynga Inc.

Zynga’s current predicament:

Nearly a year after going public, Zynga has continued to lose shares, suffering a decrease of 70% in price. This significant decline in value can be linked to Facebook’s success because Zynga Inc. is co-dependent on it. When the social-media giant becomes less popular, then so will Zynga as well.

Zynga’s IPO

https://www.youtube.com/watch?v=0JXJvKz8vfg 

Rossignol – Established 1907

Strength:

The brand recognition that Rossignol has obtained from being in the industry for over 100 years is easily its most significant strength. It is an organization that is recognized worldwide, which makes it very easy for consumers to choose: they know exactly what they’re buying. Combined with superior brand recognition, high quality products like wooden core skis create a point of position.

Weakness:

Due to such strong roots in the history of skiing and snowboarding, Rossignol has been branded as a traditional company with traditional values that don’t appear to be keeping up with the modern market.

Opportunity:

This company has the opportunity to diversify its product line, which will make its products accommodating to a greater range of people. Unlike other alpine-sport companies, Rossignol does not have a diverse selection of twin tip skis and freestyle snowboards, which is associated with the future of these sports.

Threat:

As skiing and snowboarding continues to become more popular, so has the market for producing such goods. Due to such a traditional stereotype, Rossignol is threatened by emerging alpine-sport companies that are seen as new and modern.

Analysis:

In order for Rossignol to address this threat, it needs to establish itself as a contemporary and ever-changing company with traditional roots, but not necessarily traditional values. By establishing a new frame of reference in consumer’s minds, this organization will target all skiers and snowboarders, offering new and innovative products with quality that consumers can trust. By adapting to a new audience to target, Rossignol proves itself as a true competitor in the ever-changing market of alpine sports.