J Boats There are three basic sources of strategic risk: operational risk, asset impairment risk, and competitive risk. The strategic risk of J Boats is mainly competitive risk. With the five-force analysis, first, demanding customers may choose to switch suppliers. J Boats has trouble in the cruising and entry-level markets, because cruisers think that it only builds racing boats. J Boats should attempt to identify who its customer is in every market. Second, suppliers may choose to limit availability or increase the cost. J Boats works with the builders such as TPI, but TPI doesn’t share either unexpected efficiencies or cost overrun with J Boats. TPI may increase the cost of building the production molds in the future. Third, new competitors may enter the industry with new technologies and products. J Boats focuses on the new product, and tries to have the best performing brand in the industry. Worried about the emergence of new products, J Boats is innovating too much, resulting in competing with itself in the used boat market. What’s more, the managers do not perform well in the financial planning and cost control. They don’t understand the trade-offs of quality and price. Substitute products may become available with superior costs. Johnstone family would describe J Boats' strategy as a unique perspective by creating a mission to pursue high performance boat designs in the recreational boat market. They would describe the strategy as a specific market position by choosing how to compete in the market. J Boats hopes customers to get excited to buy new boats and brings values to customers. Unlike its competitors, J Boats focuses on innovation and introduces one new product model every year. They describe the strategy as a plan by setting performance goals of reducing the costs and building stronger relationship with dealers. They describe the