3. ❝Have fun.
Stay fit. Save
money. Enjoy
your ride.❞
E n j o y Y o u r R i d e
Who We Are...
4. To be the leading low-cost
bike company that best
responds to our customers’
expectations, our
employees’ needs & our
partners’ demands.
E n j o y Y o u r R i d e
Our Vision
5. By utilizing our lean
production with great
attention to cost control,
we will deliver bikes in a
timely manner to meet the
expectations of our value-
seeking customers.
E n j o y Y o u r R i d e
Our Mission
6. COST LEADERSHIP
BEFORE
Minimum presence in “specialty”
segments
Multiple product lines in low-tech
segments
Heavy advertising spending
Focus on ROS, ROE, profits
E n j o y Y o u r R i d e
Developing &
marketing low-cost
bikes for our three
market segments.
AFTER
Our Strategy
7. Our Segments
E n j o y Y o u r R i d e
A
D
V
E
N
T
U
R
E
R
K
I
D
S
L
E
I
S
U
R
E
C
O
M
M
U
T
E
R
Adventurer 6 Splash & Splish Sunbeam &
Moonbeam
Wanderlust,
Wanderer &
Wanderoo
8. What’s the price?
Is this a quality
product?
Have I heard about
this brand?
Is this bike in stock? Does it look good?
E n j o y Y o u r R i d e
9. Market Share*
E n j o y Y o u r R i d e
* Based on Retail Dollar Sales
13. Manufacturing
2019 DECISIONS
• Decrease workforce size by
41 people
• 10,000 factory units sold
• Batch size: 425
• Setup time reduction
$220,000
• Supplier Relations $350,000
• Raw material stock: 4
weeks
• Average Salary: $24,000
• Training Hours: 51
• Maintenance: $1,300,000
• Quality Systems:
$1,000,000
• Inspection rate: 11%
2022 DECISIONS
• Increase workforce size by
23 people
• Factory size same
• Batch size: 400
• Setup time reduction
$750,000
• Supplier Relations $600,000
• Raw material stock: 6 weeks
• Average Salary: $26,000
• Training Hours: 57
• Maintenance: $1,032,000
• Quality Systems: $1,000,000
• Inspection rate: 10%
E n j o y Y o u r R i d e
18. E n j o y Y o u r R i d e
We Learnt That...
General
Research markets, sensitivities,
thresholds
Dominate new markets early
Plan decision ahead
Stick to your chosen markets
Marketing
Reduce retail margins
Don’t overprice
Finance
Sell shares at the
beginning to raise
capital
Track cash flow
Operations
Keep improving
quality
Strive for high
efficiency plant
(increase batch size,
lower inspections)
D&D
Modify your
bikes
Always
consult
customers’
perceptions
19. Recommendations
Growth in manufacturing to be able to
produce more bikes
Manufacturing costs decrease
Phase out our bicycle in adventurers’
segment
Continuing investing in R&D to produce
new products
E n j o y Y o u r R i d e