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Essay / Research Paper Abstract
This 12 page paper looks at a case provided form Mikes Bikes program and considers what strategies should be followed in year five. The paper argues for a hybrid strategy of price and differentiation as well as increasing sales through growth or a potential acquisition. The bibliography cites 8 sources.
Page Count:
12 pages (~225 words per page)
File: TS14_TEbestbikes2.rtf
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Unformatted sample text from the term paper:
the company along with apparent core competences to determined that what strategy should be. Based on the figures provided by the student the company appears to be performing well.
They now have the largest market share when measured by retail sales. This means that have over taken other companies to attain this position. Best Bikes have had
to make investments to achieve this position which has resulted in their capacity making up 33.12% pf the overall industry capacity. The are active in only two markets the leisure
bikes which are the leisure bikes, which make up more than 60% of the sales which have a higher profit margin of 52% and the adventure bike, which has lower
sales and a lower profit margin of 37% but on a higher price. In the leisure market Best Bikes are competing with Wow Cool PLC, but with 77.47% they
may be seen as dominating this segment of the market. The adventure bike segment has more competition however, with a market share of 34.81% they are still the largest competitors
here, their nearest rival is Phoenix with a 26.94% share. This gives us the indication that if Best Bikes do not already have the cost advantage in these
markets that this is one of the strategies they should be following or seeking to better. In both the segments they compete in they have the ponies of the economies
of scale, not seen with other competitors. However, we also see there is differentiation. Asker (Thompson 1998) argues it is possible to see differentiation and cost advantage in
the same product. If we look at the leisure bike, there is a major market share, but the product is also 25% more than the competitors ($399 and $500). To
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