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Mba514 Project Proposal Paper

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Mba514 Project Proposal Paper
To: MBA514 Project Proposal

From:

Date: October 1, 2010

Subject: Building and Marketing a Low Cost Motorized Bicycle in Developing Countries.

Subject

This plan is to develop and a market a low cost, two stroke engine bicycle for sale in developing countries. A startup company will be created and will use an enhanced version of a lawn mower engine, a gearing and mount assembly, and an existing aluminum alloy frame mountain bike. The bike chosen for this modification will have both front and rear shock absorbers for rough terrain.
Justification
From travelling and spending extended periods of time in rural areas of developing countries I
…show more content…
A Motiv® mountain bike with dual shock absorbers, a 2 HP Briggs and Stantton® two cycle engine and a proprietary gear drive module. Pre-built kits are available at the web on sites such as spookytoothcycles.com. The bicycle will have two main modifications to accept the engine and gearing. With efficiencies, buying in bulk, and using off the shelf parts, the team will be able to beat any imitator’s price. The assembly will be done by the buyer with a simple installation booklet. There will be distribution centers set up in urban areas in each country with outflow channels to rural users. Market Review The main user will be the rural resident that is able to afford US $300.00 with or without financial help. The number of potential customers that can actually afford the initial cost will be less than the population in need of transportation, but still a significant market. The lifespan of the bicycle is expected to be about 20 years and other users will be attracted once the usefulness of the bike is seen. The economy of the individual country will determine level of involvement and level of sales. Customer Usage and

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