There are some weaknesses of the firm. First, the activity of the company is capital consuming; it requires a lot of capital (keeping big warehouses, maintenance cost and etc.). Second, sales in this industry was mainly seasonal and cyclical, which hinders stabile flow of activities of the company. Third, Merit Marine Corporation was only Olympus's distributor, so Merit depended on Olympus. If a something-unfavorable situation happened in Olympus's business it would probably affect Merit Marine, too.