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An Economic Analysis Of The Bamboo Bicycle Industry By Heath Cox

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This document is the outcome of recent analysis that I have performed. I seek to enhance and add to it. Corrections, additional data and suggestions are welcome.

This document is the outcome of recent analysis that I have performed. I seek to enhance and add to it. Corrections, additional data and suggestions are welcome.

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    An Economic Analysis Of The Bamboo Bicycle Industry   By Heath Cox An Economic Analysis Of The Bamboo Bicycle Industry By Heath Cox Document Transcript

    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry SUS6200 Ecological Economics and Macroeconomics Presidio Graduate School April 23, 2010 Prepared by Heath Cox
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry TABLE OF CONTENTS Bamboo Bicycle Industry Overview .................................................................................... 4 Market Structure ................................................................................................................ 5 Global Production ........................................................................................................... 5 The U. S. Market ............................................................................................................. 6 Competitive Analysis ....................................................................................................... 7 Industry Analysis ................................................................................................................ 9 Rivalry Among Competitors in the Industry...................................................................... 9 Ease of Market Entry ....................................................................................................... 9 Substitute Products ....................................................................................................... 11 The Power of Suppliers.................................................................................................. 12 The Power of Buyers ..................................................................................................... 12 Demand............................................................................................................................ 13 Conclusion ........................................................................................................................ 14 Glossary of Terms ............................................................................................................. 15 Bibliography ..................................................................................................................... 16 References Cited Above ................................................................................................ 16 Selection of Additional Reference Material that Helped Inform the Research................. 18 Research prepared by Heath Cox P a g e |3
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry INTRODUCTION OF THE ANALYSIS The objective of this research is to evaluate the bamboo bicycle industry in order to determine the viability of potential future investment. This work is solely an economic analysis using Porter’s Five Forces as an analytical framework (Porter, 2008). The study was conducted through desktop research and supported by interviews with key industry players. For the purposes of this report, a bamboo bicycle is defined as any bicycle built using bamboo as the core material of its frame. The scope of this analysis is concentrated on the sale and distribution of bamboo bicycles in the United States. BAMBOO BICYCLE INDUSTRY OVERVIEW Bicycles help address many of the world’s ills. They provides a convenient means for curbing the growing challenge of traffic congestion in the world’s cities (Lagan, 2003). Bicycles grant rural communities better access to markets and important services (Peckham, 2008). Pedaling mitigates the global obesity epidemic and offers an efficient alternative to carbon emitting transportation (Gotschi, 2008). On balance, bicycles play an important role in creating a healthier planet. Even so, the manufacture of bicycles adds to the greenhouse gas problem. Although the environmental footprint for other forms of transportation is much larger; the practice of extracting and processing metal into bike parts has a negative impact on the environment (Fisk, 2008). Additionally, the distribution of bikes through a global supply chain widens the bicycles’ carbon footprint. Bicycles made with bamboo frames offer a more earth friendly option. Bamboo was used in bicycle construction as early as 1895 (Bamboo Bicycles, 1895), but has never achieved wide acceptance. Craig Calfee sparked a renaissance in bamboo bikes when he introduced his bamboo design in 1995 (Kho, 2008). New bamboo bike manufacturers have started appearing around the world, especially in the past two years. Bamboo has a number of qualities that make it well suited for bicycle frames. Research prepared by Heath Cox P a g e |4
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry All bamboo is not For example, its tensile strength is stronger than steel. Bamboo performs against alike. Bike builders carefully select the compression better than concrete. And, frames made with bamboo have superior species of bamboo vibration absorption compared to advanced materials such as carbon fiber (Huang, that meet tested specifications. 2008). Unlike steel, aluminum and other common bicycle frame materials, bamboo, is Bamboo is often renewable. In contrast to other frame material, it requires little energy to source, and smoked and heat treated to prevent can be grown locally in most environments (Fascinating Bamboo Facts, 2010). splitting. MARKET STRUCTURE To evaluate the U. S. bamboo bicycle sector, it is advantageous to start with a broader picture of the entire U.S. market for bicycles. GLOBAL PRODUCTION Figure 1: Comparison of Global Bicycle and Car Production Worldwide, an estimated 109 million bicycles will be produced in 2010 (Bicycles Produced in the World, 2010). This figure represents more than twice the projected number of cars that will be produced this year (Gardner, 2008 and Renner, 2008) as Figure 1 displays. Of those bikes, nearly 60% are manufactured in China. Other notable producers are Europe, A map of the major India, and Taiwan (Bicycles Produced in the World, 2010). Less than one percent of North American bicycles that are produced worldwide are manufactured in the United States (Crenshaw, based bicycle manufacturers and 2008), and most of those are produced by small workshops which specialize in high-end their key suppliers hand-made bikes. Imports account for more than 99% of bikes sold in the U. S. (Bike can be found at bicycleretailer.com. Europe, 2009). From January to November of 2009, over 13 million bicycles manufactured in China dominated the U.S. import market constituting a 95% share (Bicycle Retailer and Industry Network, 2010). Research prepared by Heath Cox P a g e |5
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry THE U. S. MARKET Figure 2: Sales of Bicycle in the U.S. (millions of units) About 18.5 million bicycles were sold in 2008 in the United States (Gluskin, 2008) providing over $3 billion in revenue for retailers (Norman, 2009). Sales trends from 2004 to 2008 are shown in Figure 2. Distribution in the U. S. can be divided into four main categories: mass merchants, Figure 3: U.S. Market Share By Channels of Distribution specialty bicycle retailers, sporting goods (by units sold) stores and other. Bike sales through mass merchants accounted for 74% of units sold in 2008 in the U.S. The top four mass merchant retailers are Wal-Mart, Kmart, Target and Toys-R-Us. The four-firm concentration ratio (on a volume basis) for the mass merchant category was 60%. During the same year, specialty bike retailers and sporting goods chains contributed 18% and 6% of U. S. bike sales respectively in (and by revenue value) terms of units sold (Norman, 2009). In terms of revenue, since mass merchants sell bikes at the lower end of the price scale, $83 on average, mass merchant market share is a less commanding 35% (Norman, 2009). Figure 3 displays the U.S. market share by retail category. Higher priced bicycles are mostly sold through specialty bicycle retailers which commonly provide additional services such as bike fitting and repair. There are between 4000 and 5000 specialty bicycle retailers in the United States (Norman, 2009). None have a dominant share of the market. The average retail price for bikes sold through Research prepared by Heath Cox P a g e |6
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry this sales category is $500 (Norman, 2009). In dollar terms their combined sales contribute more than 50% of market share among all retail categories. In the emerging bamboo segment, bikes are primarily sold through specialty bicycle retailers and directly to customers. Industry figures for total annual sales of bamboo bicycles are not available, but based on discussions with industry participants, annual sales can be estimated to be between 500 and 1000 units (Calfee, Frey, Meres and Beck, 2010). COMPETITIVE ANALYSIS The broader bicycle market is very competitive. Jay Townley, a bicycle industry expert, argues that the U.S. bicycle industry is a case of perfect competition where everyone in the bike business is a price taker. He cites examples of a decade long trend of retailers losing money on each new bike sold and a constant struggle over product offerings (Townley, 2006). However, the products are not entirely homogeneous, perfect information is not available, and entry and exit is not free. Monopolistic competition is a more accurate description. The market is defined by many buyers and sellers, firms have a measure of control over price changes and advertising budgets for producers are sizable (Burke, 2007). Compared to the bicycle industry as a whole, the bamboo segment is extremely small. It can be separated into three distinct groups. On the high-end are companies like Calfee Design and Boo Bicycles whose frames that sell for $2,000 or more. These bikes, mostly built in the U.S. are typified by precision and high quality finishes that require expensive skilled labor. The next tier of manufacturers consists of more modestly priced bamboo bikes, with clean finishes. Organic Bikes is a good example of this category where value pricing is a strategic path. Finally, there are a number of small workshop or garage builders. Those producers tend to focus on the eco-friendly attributes of the product and less on craftsmanship (Beck, 2010). Figure 4 (below) lists the most well known bamboo bike manufacture per category. Bamboo bicycle producers employ a number of selling strategies. The biggest commercial advantage is the eco-friendly story (Meres, 2010). Performance is also a selling feature. Demonstrating the performance qualities, professional cyclist and Research prepared by Heath Cox P a g e |7
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry bamboo bike builder, Nick Frey, has raced on bamboo frames. He has found the ride qualities to be comparable to carbon fiber race frames. Promoters of bamboo bikes also give credit to the novelty of the product, which attracts early adapters. Figure 4: Principle Bamboo Bicycle Manufacturers Producer (Year Established) Price Range Strategy & Considerations Top Tier Builders Calfee Design (1987) Starts at $2700 The company started building bamboo bikes as a publicity stunt in 1995 Le Selva Beach, CA (frame only) and is credited for laying the foundation for emerging bamboo bicycle www.calfeedesign.com industry. Owner Craig Calfee is a highly respected frame builder who was also instrumental in the introduction of carbon fiber frames. The company sells high end frames. Boo Bicycles $2,800 to $3,300 Launched in 2009 by professional cyclist and engineer, Nick Frey. Each Fort Collins, CO (frame only); frame is handmade with close attention to detail. Boo Bicycles targets the www.boobicycles.com $5,100 to $7,500 road racing segment. Introduced Bamboo in 2009 complete bike Biomega (1998) $5,000 + for The company specializes in high end “form over function” bikes. While Copenhagen, Denmark complete bike receiving good performance reviews, these bikes are built with style first in www.biomega.dk mind. Introduced Bamboo in 2009 Panda Bicycles (2009) $2,500 to $3,000 Panda advertises their bikes as “durable, comfortable and beautiful.” They Fort Collins, CO combine high end components with specially chosen bamboo to target the www.pandabicycles.com higher end of the bike commuter market. Introduced Bamboo in 2009 Middle Tier Organic Bikes (1973) $999 for single An off shoot of Wheel and Sprocket bike shop, Organic Bikes started selling Wisconsin, USA speed, $1099 for bamboo bikes in 2009. The frame tubes are made with bamboo, but the Introduced Bamboo in 2009 three speed lugs are recycled carbon alloy. The alloy lugs reduce the labor costs for construction. Touting environmental benefits, Organic Bikes are also aiming to gain from economies of scope by attracting customers from beyond the cycling community. Bamboosero Less than $1000 Launched by Calfee Design to produce bamboo bikes in developing nations. La Selva Beach, CA per frame The bikes will supply local and export markets. Bamboosero bikes www.bamboosero.com imported into the U.S. will have a lower price point than the higher quality bamboo bikes made by Calfee Design in California. Masuelli Bikes (2009) $1050 for frame Masuelli uses locally grown bamboo and champions the environmental Stockton, CA only aspects of bamboo bikes. www.masuelli.com Introduced Bamboo in 2009 Third Tier Brano Meres Engineering & No prices Started by mechanical engineer Brano Meres with plans to start selling in Design available summer of 2010. He has also started testing bamboo composite frames Bratislava, Slovakia www.bmeres.com Introduced Bamboo in 2009 Webb Works No prices Producing bamboo bikes in Thailand to support local communities. Thailand available www.bamboobikemaker Research prepared by Heath Cox P a g e |8
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry INDUSTRY ANALYSIS RIVALRY AMONG COMPETITORS IN THE INDUSTRY Since the bamboo bicycle segment is in the birth stage of its industry growth cycle, the commercial success of any builder helps to establish the bamboo bike market. Therefore, despite trying to carve out individual market positions, there is a sense of collaboration among bamboo bike manufacturers (Calfee, 2010). James Beck suggests that the friendly nature of environmentally oriented businesses helps maintain a degree of collaboration. He also indicates that expectations of competitive pressures from Asia may nurture the collaboration among U. S. bamboo bike builders (Beck, 2010). EASE OF MARKET ENTRY In recent years, bamboo bicycles have attracted a lot of media attention, but only in the “While it is not very past two years have firms entered the market in noteworthy numbers. Since 2008 at difficult to source least six firms have started small scale bamboo bicycle production for sale in the U.S. Of bamboo, make a jig, and miter and wrap the new entrants, only Biomega, a high end bicycle design firm from Denmark, has had some tubes to create a prior experience in bicycle production. frame, it is quite difficult to make a refined product that is stiff, The growth in the number of bamboo bicycle manufacturers attests to the relative ease light, responsive, and beautifully finished.” of entering the market on a small scale. The skill-set and equipment that are required Nick Frey, Boo Bicycles to produce bicycles from bamboo are the same that are needed to make bikes from the more customary material. While some advanced skill level is helpful, particularly for frame building, the basic knowledge needed for building a bicycle is widely Do-it-Yourself disseminated. For small scale bicycle manufacturing, the equipment and tools needed Bamboo Bike Centers present no unique or proprietary challenges. They are readily available and inexpensive. Bamboo Bike Studio New York, NY Underscoring the ease of technology transfer is the emergence of institutions where bamboobikestudio.com customers are taught to build their own bamboo bike. For less than $1,000 at the Berlin Bamboo Bikes Berlin, Germany Bamboo Bike Studio in New York City, for instance, anyone can learn to make their own Berlin-bamboo-bikes.org bamboo bike in one weekend. On average, it takes 40 to 50 labor hours for skilled builders to make a top-of-the-line bamboo bike frame (Masuelli Bikes, 2010). Because of the cost of labor required to build a bamboo bike, prices for the bikes made in the U.S. or in Europe tend to be high, Research prepared by Heath Cox P a g e |9
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry ranging from $2,500 to $7,000. Since the basic knowledge for building bike frames can be quickly transferred, cost reduction can be achieved by producing frames in developing countries where labor is less expensive. Taking advantage of the ease of skill An Integrated Bottom Line transfer and lower wage rates is one reason that Calfee Design and others are setting up Although cost advantages production facilities in less developed nations. Calfee’s Bamboosero project for are critical, they are not the example, has launched a small bamboo bike workshop in Ghana. The Ghanaian shop only reason for establishing bamboo production in will produce bikes for local consumption as well as for export to the U.S. and Europe. developing markets. Bamboosero, The Bamboo Recognizably, there is a trade off for producing in developing markets. The bikes Bike Project and other produced in Ghana are lower in quality compared to the much more highly refined bikes organizations aim to increase economic built by skilled technicians in the U. S. The quality difference is reflected in the price. opportunities for people The starting price for bamboo bikes made by Calfee’s company in California is $2,700. living in less developed markets and to make Bikes produced by Calfee’s Bamboosero workshop in Ghana for sale in the U.S. are affordable, reliable, earth friendly transportation priced closer to $1,000. available where it is needed most. Still, a bike that is priced at $1,000 is beyond the scope of preference for most buyers. To reach more significant reductions in price, the advantages associated with scale production must be achieved. When it comes to frame production, substantial economies of scale exist (Ulrich, 1997). For more traditional steel or aluminum bikes, with established production processes and supply chains, scale is critical. Although production automation is not inconceivable, automated methods for constructing bamboo bike frames have not been applied. In order for the smaller bamboo bike makers to achieve efficiencies of scale, more sizeable investment is required. Research Some of the assumptions of the Earth Institute Study are conducted by the Earth Institute and KPMG estimates that investment of $1 million questioned by industry would cover first year operating costs for a bike factory with annual capacity of 20,000 experts. For example, the revenue stream attributed to bamboo bicycles (Millennium Cities Initiative, 2008). It should be noted that their the project relies on a $50 research focused on an investment in Africa. While a more comprehensive investment cost of production. Industry insiders contend that that analysis would have to be completed, the Earth Institute report provides a useful figure is far too low. starting point. As demand for bamboo bicycles grows, interest in new bamboo production will be met with greater attention from current bicycle manufacturers. With minimal capital investment, established bicycle frame manufacturers can enter the U.S. market for bamboo bicycles by expanding their current production methods to include the use of Research prepared by Heath Cox P a g e | 10
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry bamboo. Because current bike builders already have the equipment and knowhow needed to produce bicycles, the costs of switching to bamboo production does not require significant investment. This was the method of entry used by Calfee Design, a highly reputable manufacturer of quality bicycle frames from La Selva Beach, CA. Biomega, a bicycle design firm from Denmark has also entered the market by adding bamboo bikes to its product line. To date, none of the large manufacturers such as Cannondale, Trek, Giant or Specialized have invested in bamboo frame production. At the current phase in the development of the bamboo bicycle industry, other factors present higher barriers to entry than production costs or technology. Notably, the cost of research is being carried by the early movers. James Beck, Product Manager for Organic Bikes, says production cost has not been a barrier. His company has faced challenges with successful testing on prototypes (Beck, 2010). That challenge is echoed by Craig Calfee and the owner of Boo Bikes, Nick Frey. Both of those builders made many versions of bamboo frames before settling on suitable designs for production (Calfee and Frey, 2010). Market entrants with existing distribution channels have an advantage. According to Craig Calfee, branding and reputation is more important than scale (Calfee, 2010). New builders without retail channels have the double challenge of championing the reputation of bamboo bike technology and also promoting their reputations as quality manufacturers. SUBSTITUTE PRODUCTS Several materials are used for the construction of bicycle frames. The most common materials used are steel and aluminum alloys (Frame Materials, 2010). A small fraction of bikes are also made out of titanium, magnesium, thermoplastic or other experimental materials. Each material offers different performance features and price points. The variety of other suitable frame materials puts price pressure on bamboo frames. The challenge for bamboo is to break into a market dominated by entrenched materials. Doing so is not impossible. Only twenty years ago the benefits of carbon fiber were just being applied to bicycle frames (Hudson, 2010). Now carbon is a preferred material for Research prepared by Heath Cox P a g e | 11
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry high end bikes and is even starting to show up in bikes sold by Wal-Mart (Wal-Mart Enters Hi-End Bike Market, 2007). The attractive combination of price, performance and environmental benefits should allow bamboo to follow carbon fiber’s slipstream. Helpfully, the increasing costs of steel and other metals may relieve some of bamboo’s price pressure. THE POWER OF SUPPLIERS Common Bicycle With the exception of the frame, bamboo bikes use the same components as bikes built Components with more traditional frame material. Until the 1970s it was common for bikes to be  Seats,  Wheels & Tires constructed with components from many different companies (The Bicycle Component  Handlebars  Pedals Industry, accessed 2010). Then, through consolidation, the supply of bicycle  Chains  Derailers and components became dominated by two firms; Campagnolo and Shimano. The Chain Stays command of the big two suppliers notwithstanding, their position of power is not  Brakes  Gears necessarily secure. SRAM, a component manufacturer which began in Chicago in 1987,  Gear Cables has quickly grown to be a choice supplier for high end components (SRAM, 2010). Intense competition between the top component manufacturers and the emergence of SRAM, together with hundreds of smaller component companies give bike manufacturers a wide choice of components. Underscoring the availability of options, exhibitor registration for Interbike 2010, the world’s largest annual bicycle trade fair, lists 414 bicycle component companies (Interbike Times, 2010). The wide choice of acceptable alternatives minimizes suppliers’ ability to impact the emerging bamboo bicycle market. THE POWER OF BUYERS A bicycle is a product that is generally geared toward consumers; and like most consumer markets, buyers are widely dispersed. The low level of buyer concentration limits consumers’ power. When evaluating bamboo bicycles, there are a number of aspects that consumers consider. First, according to Craig Calfee, a bamboo bike has to have a certain level of finish (Calfee, 2010). Brano Meres, owner of BME bikes, adds that customers for bamboo bikes also consider the environment, vibration absorption properties and the distinctiveness of a bamboo frame (Meres, 2010). Research prepared by Heath Cox P a g e | 12
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry Because the vast majority of bikes are sold through retailers, however, retail channels have a measure of influence. Retailer power is greater for lower priced bicycles where retail category is more concentrated. Because bamboo bikes are generally sold through specialty bicycle retailers, they are confronted with less retail pressure. Although some contraction has occurred in recent years, the high number of independent retailers in this category diffuses their power. Craig Calfee adds that retailers are interested in products that sell. If there is a demand for bamboo bikes, retailers will be happy to sell them (Calfee, 2010). DEMAND Concern for the environment, higher fuel prices and increasing efforts in bicycle advocacy are cited as significant contributors to the growth of bicycle ridership. In the past several years, ridership has gone up dramatically in cities across the U.S. (Bikes Belong, 2010). U.S. ridership in 2008 grew to 44.7 million, an 11% increase from 2007. As the general bicycle market expands, there will be more opportunities for bamboo. Few companies have entered the market for bamboo bicycles due, as James Beck puts it, to the “unknown” factor of bamboo (Beck, 2010). It is not yet clear whether a critical number of buyers will consider bamboo an acceptable material for bike frames. Until demand can be better gauged, large manufacturers will likely wait along the roadside while the early movers in the market invest energy and dollars building demand and establishing bamboo as a viable frame alternative. Even current participants are hesitant to call bamboo a “game changer” for the frame industry. However, the promise of bamboo is not bleak. There is a general sense that people want bamboo to succeed. Retailers in contact with bamboo bike producers are excited by the environmental benefits of bamboo (Beck, 2010). Bamboo bicycles have another advantage; familiarity. A bicycle is a mature product. When customers see a bicycle, they quickly understand how it works. From a buyer’s perspective, within a given price range, switching from a steel or aluminum bike to one made from alternative material is not difficult. Familiarity makes it easier for customers Research prepared by Heath Cox P a g e | 13
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry and retailers to try the product (Beck, 2010). The nature of bamboo gives buyers the ability to relate to the machine. That relationship, insists Calfee and Beck, has cache. CONCLUSION Bicycle sales in general gain from the increase in environmental awareness, rising fuel prices and the advocacy work that has promoted bicycling and resulted in greater bicycle infrastructure. Because bamboo is a renewable resource it gains additional favor in the fight against greenhouse gases. Increasing cost of steel and aluminum also lift bamboo’s appeal. It is too early to determine whether the bamboo bicycle industrial segment can move beyond the infancy stage. Industry insiders are not convinced that bamboo will be more than a niche segment. To become more than novelty, recognition of bamboo’s performance attributes by a wider audience must be achieved. Using the history of carbon fiber frames as a benchmark, the performance credibility of bamboo may take some time. A growing number of bamboo frame builders entering the market, however, foretell promise for the industry’s outlook. The relatively low entry barriers are a positive factor in growing the industry. Each new entrant helps to build awareness and legitimacy. An uptick in competition between bamboo bike makers should also result in technological advances and reduced costs. At that point, marketing dollars will shift from promoting the benefits of bamboo to highlighting differentiation between bamboo manufacturers. As the market begins to prove itself, low barriers to entry, in particular the low manufacturing switching costs will encourage larger established bicycle manufacturers to add bamboo frames to their product mix. In addition to fully legitimizing bamboo as a frame alternative, the weight of the larger producers will drive down prices making bamboo bikes more accessible to a broader range of consumers. Research prepared by Heath Cox P a g e | 14
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry GLOSSARY Bamboo Bicycle A bicycle built using bamboo as the core material of its frame Carbon Fiber Frames Carbon fiber is a common name that refers to plastic reinforced by a graphite textile. It can be expensive, but has an excellent weight to strength ratio that makes it well suited for higher performance bicycle frames. Finishes Coatings such as paint, enamel, or lacquer that gives bike frames a smooth attractive appearance. Bamboo manufactures also use sealants such as satin polyurethane to seal bamboo tubes. Frame The main component of a bicycle onto which other components are attached; the bike’s skeleton Lugs A sleeve that holds two or more tubes together at the joints to make a frame Specialty Bicycle Also known as local bike shops or independent bicycle dealers, a Retailers small business that specializes in the sale and maintenance of bicycles. Specialty bicycle retailers also sell bicycle parts, bike accessories, tools, cycling clothing and most provide bicycle repair and service. Tensile strength Resistance to being pulled apart Tubing Tubes or pipes that make up the structural component of a frame. Tubing is most often steel alloy, but can be aluminum, titanium, plastic, or glass, graphite, boron fibers, or bamboo. Research prepared by Heath Cox P a g e | 15
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry BIBLIOGRAPHY REFERENCES CITED ABOVE Norman, J. (2009). Preliminary Estimates 2008 U.S. Bicycle Market Features of Channels of Distribution. Bicycle Retailer & Industry News, 24. Crenshaw, J., & McClellan, D. (2008). China Remains On Top Despite Pressures. Bicycle Retailer & Industry News, 17(11). Retrieved from http://www.bicycleretailer.com/downloads/01,%2032- 33%20PROD%20STATS%207-1-08.pdf Gluskin, E., & Townley, J. (2008). Industry Overview 2008 - National Bicycle Dealers Association. National Bicycle Dealers' Association. Retrieved April 19, 2010, from http://nbda.com/articles/industry-overview-2008-pg34.htm Porter, M. (2008). The Five Competitive Forces that Shape Strategy. Harvard Busienss Review. Beck, J. (2010, April 14). Bamboo Bicycle Industry Interview with Product Manager of Organic Bicycles. Calfee, C. (2010, April 9). Bamboo Bicycle Industry Interview with Owner of Calfee Design and Bamboosero. Frey, N. (2010, April 15). Bamboo Bicycle Industry Interview with Owner of Boo Bicycles. Meres, B. (2010, April 9). Bamboo Bicycle Industry Interview with Owner of BME. Di Ieso, Jr., R. A. (2009, Spring). Fill It Up, Please: How much fuel does it take to move a person 350 miles. Good, (015 (the transportation issue)), 64 - 65. Car Almanac | Statistics about Pollution, Energy Use, and Danger. (n.d.). . Retrieved April 19, 2010, from http://bicycleuniverse.info/transpo/almanac.html Peckham, D. (2008). Bicycles for Poverty Reduction: The Bicycle Debates. International Forum for Rural Transport and Development: Forum News, 14(2), 1-2. Gotschi, Ph.D., T., & Mills, J.D., K. (2008). Active Transportation for America: The Case for Increased Federal Investment in Bicycling and Walking. Rails-to-Trails Conservancy. Fisk, U. (2008, June 2). Umbra on the impacts of biking | Grist. Grist. Blog, . Retrieved April 19, 2010, from http://www.grist.org/article/ten-speed-demon/ Bamboo Bicycles. (1895, January 19). Hawke’s Bay Herald and Ahuriri Advocate, 6. Napier, New Zealand. Kho, N. D. (2008, July 5). Bamboo Bikes Have Benefits. San Francisco Chronicle, F-4. San Francisco. Huang, L. (2008, April 21). Stronger Than Steel. Newsweek. Retrieved from http://www.newsweek.com/id/131702?rf=nwnewsletter Fascinating Bamboo Facts - blueridgebamboo.com. (n.d.). Blue Ridge Bamboo LLC. Retrieved April 19, 2010, from http://www.blueridgebamboo.com/Interesting_Facts.html Bicycles produced in the world - Worldometers. (n.d.). Worldometers: world statistics updated in real time. Retrieved April 19, 2010, from http://www.worldometers.info/bicycles/ Bike Europe. (2009, August 16). Facts & Figures - Market Reports: <b>USA 2008:</b> Bike Market Not Immune to Recession. Bike Europe: Website for Bike Professionals. Retrieved April 19, 2010, Research prepared by Heath Cox P a g e | 16
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry from http://www.bike-eu.com/facts-figures/market-reports/3534/usa-2008-bike-market-not- immune-to-recession.html Renner, M. (2008, May 21). Vehicle Production Rises, But Few Cars Are "Green" | Worldwatch Institute. Retrieved April 19, 2010, from http://www.worldwatch.org/node/5461 Gardner, G. (2008, November 12). Bicycle Production Reaches 130 Million Units | Worldwatch Institute. Retrieved April 19, 2010, from http://www.worldwatch.org/node/5462 Bicycle Retailer and Industry Network. (2010). Trade Watch: U.S. Bicycle Imports Throught November, 2009 Year-to-Date. Washington, DC: Bicycle Retailer and Industry Network. Retrieved from http://www.bicycleretailer.com/downloads/27%20trade%20imports%202-10.pdf Masuelli Bikes. (2010). MASUELLI BIKES. Masuelli Bikes. Retrieved April 19, 2010, from http://www.masuelli.com/ Ulrich, K., Randall, T., Fisher, M., & Reibstein, D. (1997). Managing Product Variety: A Study of the Bicycle Industry. Philadelphia, PA 19104: The Wharton School University of Pennsylvania. Retrieved from http://opim.wharton.upenn.edu/~ulrich/downloads/bikevarstrat.pdf Millennium Cities Initiative. (2008). Bamboo Bicycles in Kumasi, Ghana (Investment Study). KPMG LLP (KPMG) and Millennium Cities Initiative (MCI) at Columbia University, Hudson, W. (2010). Myths and Milestones in Bicycle Evolution. Retrieved April 22, 2010, from http://www.jimlangley.net/ride/bicyclehistorywh.html SRAM. (2010). SRAM | SRAM. Retrieved April 19, 2010, from http://www.sram.com/sram/home Interbike Times. (2010). Interbike Times. Blog, . Retrieved April 20, 2010, from http://www.interbiketimes.com/ FRAME MATERIALS - Which Frame Material is Best. (n.d.). The Spokesman Bicycles. Retrieved April 20, 2010, from http://spokesmanbicycles.com/articles/frame-materials-pg157.htm Wal-Mart Enters Hi-End Bike Market. (2007, August 27). Bike Europe: Website for Bike Professionals. Retrieved April 22, 2010, from http://www.bike-eu.com/news/2485/wal-mart- enters-hi-end-bike-market.html Nicol, S. (n.d.). METALLURGY FOR CYCLIST I: The Basics - The Spokesman Bicycles. Retrieved April 20, 2010, from http://spokesmanbicycles.com/articles/metallurgy-for-cyclist-i-the-basics- pg328.htm Townley, J. (2006). A Case Study In Perfect Competition: The U.S. Bicycle Industry And How Independent Retailers Can Thrive!. Retrieved from http://www.bike- marketer.com/A%20Case%20Study%20In%20Perfect%20Competition.pdf Burke, J. (2007). The Bicycle Industry's Greatest Opportunity. Taipei Cycle Trade Show: Quick Release TV. Retrieved from http://www.youtube.com/watch?v=OfRiFylmiS0 Formosa, N. (2009). Researchers Say Cycling Sees 11 Percent Upswing. Bicycle Retailer & Industry News, 18(9), 1, 26. Bikes Belong. (2010). Participation Statistics | Bikes Belong. Bikes Belong. Retrieved April 21, 2010, from http://www.bikesbelong.org/node/1099790 Research prepared by Heath Cox P a g e | 17
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry SELECTION OF ADDITIONAL REFERENCE MATERIAL THAT HELPED INFORM THE RESEARCH McGivern, T. (2009, November 13). The Power of Bamboo! « The Sustainable Cyclist. The Sustainable Cyclist. Blog, . Retrieved April 19, 2010, from http://thesustainablecyclist.com/2009/11/13/the-power-of-bamboo/ Millennium Cities Initiative. (2008). Bamboo Bicycles in Kumasi, Ghana (Investment Study). KPMG LLP (KPMG) and Millennium Cities Initiative (MCI) at Columbia University, Lagan, C., & McKenzie, J. (2003, February). EarthTrends: Feature - Sustainable Cities, Sustainable Transportation. Retrieved April 19, 2010, from http://earthtrends.wri.org/features/view_feature.php?fid=54&theme=4 Why Bikes « Worldbike :: Mobility for Good. (n.d.). . Retrieved April 19, 2010, from http://worldbike.org/why-bikes Isely, P., & Roelofs, M. R. (2004). Primary market and aftermarket competition in the bicycle component industry. Applied Economics, 36(18), 2097-2102. doi:10.1080/0003684042000258657 Brower, M. (2005). Advancements in Materials Used in Bicycle Frames. School of Engineering, Grand Valley State University. Nicol, S. (n.d.). Metallurgy for Cyclists. 63xc.com. Retrieved April 20, 2010, from http://www.63xc.com/scotn/metal.htm Gearhead. (n.d.). The basics of bicycle frame materials - by Gearhead - Helium. Helium. Retrieved April 20, 2010, from http://www.helium.com/items/279561-the-basics-of-bicycle-frame- materials Bamboo : Nature's Composite PART 1. (2008, February 7). Cozy Beehive. Retrieved April 20, 2010, from http://cozybeehive.blogspot.com/2008/02/bamboo-natures-composite-part-1.html McGivern, T. (2010, January 19). Interview with Nick Frey, Owner of Boo Bicycles « The Sustainable Cyclist. The Sustainable Cyclist. Blog, . Retrieved April 20, 2010, from http://thesustainablecyclist.com/2010/01/19/interview-with-nick-frey-owner-of-boo-bicycles/ Reidl, A. (2010, January 8). Bamboo Bikes: The Ultimate Eco-Friendly Ride - SPIEGEL ONLINE - News - International. Spiegel Online International. Online Magazine, . Retrieved April 20, 2010, from http://www.spiegel.de/international/zeitgeist/0,1518,670689,00.html Chen, Y., Lin, M. J., Chang, C., & Fang-, M. L. (2009). Technological innovations and industry clustering in the bicycle industry in Taiwan. Elsevier: Technology in Society, 31, 207 - 217. unknown. (n.d.). The Bicycle Component Industry. Scribd. Retrieved April 19, 2010, from http://www.scribd.com/doc/26856476/The-Bicycle-Component-Industry Editors of Bicycling Magazine. (2003). The noblest invention : an illustrated history of the bicycle. [Emmaus Pa.]: Rodale. Research prepared by Heath Cox P a g e | 18
    • An Economic Analysis of the Emerging U.S. Bamboo Bicycle Industry Acknowledgment: I would like to thank Craig Calfee, James Beck, Brano Meres and Nick Frey for the time and insight that they provided to this research. . Research prepared by Heath Cox P a g e | 19