Bicycle and Schwinn
Discussion Questions:
1. What are the strengths and weaknesses of Schwinn?
Strengths:
a. Brand is known for high quality products.
b. Offers high end consumers the prestige of Schwinn bicycles being handmade in the U.S.
c. Under new management with a new set of ideas, able to streamline the manufacturing process reducing costs.
Weaknesses:
a. Consumers feel that Schwinn is no longer in style.
b. Ignored technology changing from heavy duty bicycles to carbon fiber and modern alloys.
c. Was not successful in forecasting and reacting to demand.
2. What opportunities and threats does the company face?
Opportunities:
a. New line of bicycles, with proper marketing they will be able to capture a part of the market share.
b. To purchase Yeti and increase their share in the mountain bicycle market.
c. Bicycles are priced to compete within the different market segments.
Threats:
a. Has a small share of the market.
b. Schwinn is no longer recognized as the top in the industry.
c. Must compete with other bicycle manufacturers.
3. How important is it for mountain bikes to be made in America?
Consumers pride themselves in buying items that are made in America. Schwinn having only 7% of the market share must promote their product as an American handmade bicycle. American made has a positive impact on consumers purchasing decision.
4. Evaluate Schwinn’s strategy of selling bikes for prices from $100 to $2,500.
The Schwinn brand was known for many decades as for heavy duty low cost bicycles. Schwinn is working on repositioning their product into the higher end priced segment of the market. This way they are able to appeal to a broader consumer base. Offering products priced from $100 to $2,500 prevents the company from exclusively focusing on one end of the market. By offering lower prices the company is able to maintain their
1. What are the strengths and weaknesses of Schwinn?
Strengths:
a. Brand is known for high quality products.
b. Offers high end consumers the prestige of Schwinn bicycles being handmade in the U.S.
c. Under new management with a new set of ideas, able to streamline the manufacturing process reducing costs.
Weaknesses:
a. Consumers feel that Schwinn is no longer in style.
b. Ignored technology changing from heavy duty bicycles to carbon fiber and modern alloys.
c. Was not successful in forecasting and reacting to demand.
2. What opportunities and threats does the company face?
Opportunities:
a. New line of bicycles, with proper marketing they will be able to capture a part of the market share.
b. To purchase Yeti and increase their share in the mountain bicycle market.
c. Bicycles are priced to compete within the different market segments.
Threats:
a. Has a small share of the market.
b. Schwinn is no longer recognized as the top in the industry.
c. Must compete with other bicycle manufacturers.
3. How important is it for mountain bikes to be made in America?
Consumers pride themselves in buying items that are made in America. Schwinn having only 7% of the market share must promote their product as an American handmade bicycle. American made has a positive impact on consumers purchasing decision.
4. Evaluate Schwinn’s strategy of selling bikes for prices from $100 to $2,500.
The Schwinn brand was known for many decades as for heavy duty low cost bicycles. Schwinn is working on repositioning their product into the higher end priced segment of the market. This way they are able to appeal to a broader consumer base. Offering products priced from $100 to $2,500 prevents the company from exclusively focusing on one end of the market. By offering lower prices the company is able to maintain their