Wavestorm surfboards have become the most popular type of surfboard in the world at an industry-breaking price of only $100 USD. This is a clear-cut example of disruptive innovation, as Wavestorm sells their boards at a slim margin, but at great quantities. Since their conception in 2007, Wavestorm have created quality, cheap, and beginner friendly surfboards that can hold their own on most waves.
A prime example of the benefits of having good strategy, and an innovative idea prior to entering the market, founder Matt Zilinskas has revitalized the surfboard industry. Beyond the affordable cost, Zilinskas cites the decision to bypass traditional sales channels and to only sell at Costco was key to the company’s success. This allowed them to pump out a massive volume of surfboards at a slim profit margin, causing them to aggressively gather market share in the industry.
While their distribution channel, low cost structure, and good strategy all contributed to their success, Wavestorm’s biggest asset is the quality of their boards. Without the quality they have built, Wavestorm would not have the consumer confidence they currently have, and surely their rapid industry takeover could not have happened.
Wavestorm is an exceptional example of success in almost all topics covered in Comm101 class, whether its operations, strategy, or entrepreneurship. With this in mind, it’s clear that Matt Zilinskas has created a business that is rooted on strong business fundamentals, and as a result, will likely remain successful and profitable for a long time.
Article: http://www.bloomberg.com/news/articles/2015-10-29/wavestorm-s-99-99-surfboard-upends-the-industry
