Mountain Bike Case Study

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Introduction:
* Adam Craig is a struggling entrepreneur
* 2008 Olympic Bike Racer
* Owns Golden Dreams Bike Rental and Repair Store
* Located at Nesters Market in whistler B.C
* A few competitors
* Bought business 1 year ago
* Previous owner was unsuccessful for 5 years

Problem:
* Why is Adam Craig not making a profit in his current location? Product:
- Doesn’t have enough inventory to make money
Place:
- Inconvenient location with poor travel options for customers Price:
- Reasonable compared to other companies
Promotion:
- Choose more effective ways of advertising, (sponsor races- PR)

Key Findings/ Facts/ Assumptions:
* Competition- 4 Main competitors ranging from $40-$125/day * One competitor in Squamish provides shuttle service
* 22 Hotels whistler total
* 8 bike friendly
* 2 fully equipped with bike wash, secure storage, tuning stations * average # visitors in the resort per day- summer 2009 was 12,550

Strengths, Weaknesses, Opportunities, Threats
Competitive Analysis
Target Market
* Geographically
* Whistler Tourists
* Demographically
* All Terrain bikes- Families with parents aged 25- 40 * Mountain Biking- 15-30
* Psychographic
* People who enjoy the outdoors
* Extreme people

Alternative Number 1

- Purchase Van for transporting tourists (Product development)
Pros:
- Does not have to move locations
- Possible charge for shuttle service= additional revenue
- Shuttle could be used for other things
Cons:
- Costly- Buy a van
- Vehicle maintenance
- Still not good location
- Need a Class 4 license

- Moving location (Market Penetration)
Pros:
- Better visibility to customers
- Higher traffic
- Larger space for workshop and additional inventory

Cons:
- Higher rent
- Need more inventory
- Moving expenses

- Offering package deals working with hotels (Product...
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