This is a case study for Schwinn bikes that addresses these issues: the strengths and weaknesses of Schwinn; the opportunites and threats that face the company. Evaluates Schwinn's strategy of selling bikes for prices from $100 to $2,500, and Zell/Chilmark's decision to invest $50 million in Schwinn. Calculates the breakeven point and the payback period.
Schwinn Bicycles Two strengths of Schwinn are its name recognition and its brandloyalty Another strength is that Schwinn currently has a percent marketshare in the United States This percent market share can be used togenerate additional sales in the billion retail bike market incontrast to a start up company that would have to start at the beginning indeveloping brand recognition and demand Another strength of this companyinvolves the decades of experience that Schwinn has in marketing andmanufacturing which among other things has
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In contrast to the exclusive dealerships common in the past,Schwinn's products must now compete with other bicycle manufacturers inindependent bike retailers in side by side comparisons. Schwinn is a leaner andmore agile company following layoff of about 4 percent of its workforce.On the other hand, Schwinn faces formidable competition from othermanufacturers with established reputations for selling the most currentbicycle designs and marketing them in such a way that they are able toattract individuals with the disposable income sufficient to pay $15 ormore for a...