I. Introduction of Cyclermate
Lewis Llewellyn and Dai Armstrong were the first two men who made a plan of opening their own company after being redundant as the consequence of the closure of their town’s steel works in South Wales. Both of them belonged to the local cycle touring club and since then, they had become close friends. With the idea of making a traditional upright cycle in sharp of the 1940’s and 1950’s, Cyclermate Ltd has been established and quickly gained success and attracted a number of attentions of customers owing to its high quality hand - made products and word – of – mouth reputation. Over the next 15 years, the company had still expanded and continued to be successful when persuading many small cycle shops in Wales and England to display or at least to keep a stock of brochures of its products. Everything seems to work quite smoothly until 2010, when Cyclermate has faced a lot of issues in terms of finance, human resource and operation. To be specific, the demand among buyers in this field continues to fall even price of each Cyclermate’s product has been reduced; the quality of its products are no longer as good as it was in the past which illustrated by the increase of complaints from customers about its quality and fault and the bank manager has expressed concern about the overdraft which will cost Cyclermate a big trouble if it does not solve these problems immediately. These are just some of the obstacles which the company has faced so in this essay, I will analyze more clearly about its difficulty and recommend some positive solutions for Cyclermate which it can follows to handle these issues.
II. Cyclermate analysis
1. SWOT analysis
First of all, in order to have a wide vision about this company, I have used SWOT as a tool to identify and analyze the situation of Cyclermate at the moment. As regards internal factors, one of the strength of this company which makes it different compared to the other companies is unique products. As far as I am concerned, with the development of technology, many cycle shops nowadays use a modern production chain to dispose and assemble materials. Nonetheless, the cost for this activity is quite high and most of the products will be the same. When it comes to Cyclermate, almost processes have been settled by hand; thus, staffs can easily add their creation into products and attract customers by the wide range of style of its bicycle. Furthermore, by using traditional method, Cyclermate have brought some new things to the market making buyers feel more interesting, especially when products have been sold in the market are quite common and familiar. When it comes to the weaknesses, as almost Cyclermate’s products have been made by hand so mistakes and faults are inevitable. That is to say, besides the price paying for materials, it also has to spend some more for fixing service. Moreover, with the lack of employees and capital, Cyclermate has struggled in operating the company and consequently, it normally has to face the insufficient production selling in the market. As regards external factors, a huge opportunity for Cyclermate at the very first is that it produces an unfamiliar product so Cyclermate can avoid big competitors and has a chance to dominate the market. Besides, according to Mr. Llewellyn, there is still strong growths to come in the cycle market as more and more people abandon their cars; hence, this is a good chance for this company to reach to its customers. One of the most striking features which should be considered here is the economic crisis occurring in 2008 resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses,...