Situation Analysis: Schwinn Bicycles

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Situation Analysis/ Environment / Industry

The rise and fall of the Schwinn Bicycle Company seems unreal especially after having over 100 years of experience manufacturing bicycles. Schwinn was once a household name in its category of bicycles in the U.S.A. You didn’t have to be rich to own a bicycle by Schwinn because the bicycle was always very affordable. They were known for their quality but they kept their product too simple for too long.

Schwinn started out as the most desired bicycle in the bicycle manufacturing industry in the U.S. The baby boomers would dream of having a bicycle for Christmas, birthday, or any special occasion and the parent would be glad to purchase the Schwinn bicycle just to see the smile on their innocent faces.

In the past, Schwinn was the leader of bicycle manufacturing in the U.S. and was very successful at maintaining the lead in market shares for their products until bicycles were being manufactured by many other companies such as: Trek, Cannondale, Murray, Huffy and Roadmaster. These are Schwinn’s biggest competitors.

The bicycle industry is very competitive and very hard to maintain a lead if you can’t guarantee superior quality product. Schwinn’s competitors gave them a run for their money because unlike Schwinn, the other competitors were not afraid to expand their business with new innovative ideas and technology. Mountain bikes, as a major new product, could have taken the bicycles in the U.S. to a whole new height, but Schwinn stuck its head in the sand and declined to promote such a product. Before it was too late, Schwinn lost its lead and other competitors were soon taking over the industry. Schwinn made some very poor choices in their marketing strategy. They targeted the children and the middle-aged of at least 40 years old to sell the robust, vintage bikes to. The bikes were heavy, plain, but cheap. This is what the social environment of people were looking for at the time.

Schwinn Bicycle Company...
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