Black Diamond Equipment, Ltd.

Company History• Opened in 1989 after a group of former

managers, with employee support bought assets of Chouinard Equipment from Lost Arrow Corporation during Chapter 11 bankruptcy procedure.

• Black Diamond Equipment The Name: – owners wanted it to reflect its roots and project a

fresh beginning.

Background• December 1, 1989 - Chouinard Equipment bought by

employees • CEO: Peter Metcalf• Location:

– Ventura, California then moved to Salt Lake City, Utah• “We've devoted our energy toward the goal of creating

a company which fosters the enthusiasm and dreams necessary to design and manufacture the best climbing and skiing gear in the world.”

Mission• “to design, manufacture, and bring to

market, in a profitable and on-time manner, innovative and technical products of high quality, high performance, and exemplary durability that are targeted toward our primary customers—climbers and backcountry skiers.”

Ten Guiding Principles1. Being the market leader, synonymous with the sports we serve and are

absolutely passionate about;2. Having a truly global presence;3. Supporting the specialty retailer;4. Creating long-term partnership with companies we do business with;5. Being very easy to do business with;6. Being a fierce competitor with the highest ethical standards;7. Developing sustainable, competitive advantage;8. Sharing the company’s success with its employees;9. Creating a safe, personally fulfilling work environment for all employees;10. Championing the preservation of and access to our mountain

environments.

Product Line• Climbing Protection

– Camming Devices– Nuts– Stoppers– Pitons– Piton Hammers– Slings– Runners– Daisy chains– Etriers– Webbing– Belay devices– Carabiners

• Harnesses– Sport climbing– Alpine mountaineering– Big wall

• Footwear– Mountaineering boots– Ski boots– Rock-climbing shoes

• Ropes and Rope Bags Packs– Hip Packs– Backpacks

• Tents Snow and Ice Tools– Axes– Crampons– Ice screws and hooks

• Ski Tools– Skis– Bindings– Poles

• Climbing Clothing– T-shirts– Sweatshirts– Shorts– Pants– Hats– Belts– Chalk Bags

Black Diamond International

• Operations as located on three different continents: – North America– Europe– Asia

• Has distributors in over 20 different countries

Company’s External Environment

• Retailers– “Core” mountaineering shops– Mom and Pop stores– Sporting goods and Department store chains

Company’s External Environment

• Wholesalers

– Consists of three different groups

What group does Black Diamond Equipment fall under?

Company’s External Environment

• Manufacturers

– There are two different types of manufacturers in Black Diamonds external environment.

• “software”• “hardware”

Company’s External Environment

• Competition among wholesalers and manufacturers

– Domestically

– Internationally

The Black Prophet

• Ice Climbing Axe• Light Weight• Composite Handle• Innovative Style• Hype

The Black Prophet

• Jeff Jamison – January 1993• Black Prophet snapped • What should Black Diamond do?

– Recall?– Discontinue Axe Program?– Ship Unsafe Product?

Business-Level Strategy

• Quality Products• Innovative• Preservation of Mountain Environment• International• “Made in Black Diamond” Strategy• “If you target extremists, the recreational

customers will follow”

In – House Capabilities

• Metalworking specialization• Cold – forging• Stamping and forming• Computer Numerically Controlled

Machining (CNC)

Subcontracting

• Aluminum hot-forging• Investment casting• Laser-cutting steel• Heat-treating• Welding

Production Facility

• Machine shop• Punch press room• CNC machines room• Tumbling and polishing room• Assembly room• Materials and shipping

Inspection

• One person for spot-checking• Quality manager informed• Assembled in groups• One employee responsible for quality

control• ISO 9000 looming

Quality Control Programs

• Finding a manager for the quality control programs.– The original head of quality control had left

the department– Mellie Abrahamsen was selected to head the

department and change their procedures in producing hiking equipment.

Quality Control Programs

• Writing down procedures– Employees were used to finding the correct

procedures through trial and error.– Employees view themselves as being creative

and wonder if these new procedures will cut down on their creativeness.

Quality Control Programs

• Employee Turnover– Needing to reduce the amount of employee

turnover by finding new ways to keep there employees

– Black Diamond has tried profit sharing and monthly financial meetings.

Quality Control Programs

• Formal Testing– Developing formal testing procedures instead

of testing equipment by trial and error.

Quality Control Programs

• Training– Most machine shop workers are not proficient

in English or math.– Training will take away from production.

SWOT

• Strengths– Experienced workers– Innovative drive– Globalization – Private ownership

• Weaknesses– New product development– Lack of ISO 9000 certification

SWOT• Opportunities

– Expanding Market– Expanding Internationally– Increase Commercial Advertising– Increasing Interest in Extreme Sports

• Threats– Legal Liabilities– Environmental Threats– European Outdoor Companies

Recommendations

• Improve New Product Development– Total Quality Management System– Eliminating Defects

• Expand Products Line to Snowboarding

Sources

• http://www.bdel.com/scene/video/index.ph p#

• www.bdel.com• http://www.bdel.com/about/press.php#061

606• www.answers.com/topic/black-diamond-

equipment-ltd