Building and Marketing a Low Cost Motorized Bicycle in Developing Countries.

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To: MBA514 Project Proposal

From:

Date: October 1, 2010

Subject: Building and Marketing a Low Cost Motorized Bicycle in Developing Countries.

Subject

This plan is to develop and a market a low cost, two stroke engine bicycle for sale in developing countries. A startup company will be created and will use an enhanced version of a lawn mower engine, a gearing and mount assembly, and an existing aluminum alloy frame mountain bike. The bike chosen for this modification will have both front and rear shock absorbers for rough terrain. Justification

From travelling and spending extended periods of time in rural areas of developing countries I have seen the need for low cost portable transportation. Portable in this case refers to the ability to push or ride the bicycle in the event of malfunction or lack of fuel. For this bicycle to be viable the owner has to be able to afford the initial investment with little or no help. Based on initial assessment the secondary need of this product is full functionality in the event of a non operating motor. The owner will be able to use the bicycle even while awaiting repairs or is out of fuel. This is almost as important as being able to operate the bicycle normally. In some developing countries the availability of support resources is sometimes unpredictable. (Towton S. 2003) Some critical resources that will render the bicycle less than fully functional are: • Fuel

• Spare parts
• Money
• Proper road surface
If customers can be assured of being able to extract some usage from this item, despite malfunctions, they may be more likely to purchase it. Another major selling point is that the cost of this bicycle will be about 20% more than a regular mountain bike, with the added feature of being motorized. The average trip on this bicycle could be about 10 miles on uneven...
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