BUS421 Marketing Strategies
Case 20: Schwinn Bicycles p. 506
1.) Schwinn’s strengths are they have a wide variety of bikes to select from; bikes sell from $200 to $400 retail which offers lower prices; over 400,000 redesigned bikes, they have a diverse customer base which allows products to reach a larger range of customers; they are price conscious because they have low to middle income; brand; experience in the market; longevity of 100 years of business; and new management. Schwinn’s weaknesses are management facing difficulties after they almost went bankrupt; they are no longer on top of the crowded mountain bike market; they are now less than 5% of the retail bike market; they are at the lower end of the adult bike market; they cant become successful again until cyclists spend over $700 for its newer bikes; they have lost considerable market share with its failure to capitalize on the increasing popularity of mountain and road bikes; Schwinn doesn’t offer many different types/sorts of bikes like it’s competitors; they have lost their image and reputation because of almost bankrupt; and mostly Asian manufacturing. 2.) The opportunities Schwinn face are that they have redesigned over 400,000 bikes; rebuild the brand back to being synonymous with durability -rule the road; to regain “Made in America” status; reinvent and innovate of retro style and bar style; product development such as new kinds in existing market; penetration meaning more of the same in the same markets; sponsor extreme sports functions, like Red Bull or Monster and create association between product and market. The threats they face are Huffy, Murray, and Roadmaster, which dominate the market for low priced bikes; any negative impact in the economy will not only affect their customers but their company as well; manufacturers such as Trek, Cannondale, and Specialized have become the standard; Trek maintains the mountain bike segment as their lone market,...
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