This proposal outlines plans for Re:cycles Bikes, a small American bicycle company, to expand globally by opening a location in Utrecht, Netherlands. The proposal discusses Re:cycles' current business operations in Greensboro, North Carolina, then provides an analysis of the bicycle market and culture in the Netherlands to argue that it is a good location for expansion. It recommends pursuing a joint venture with an existing Dutch bicycle company, Wheels Tweewielers, and focuses on selling safety and convenience accessories as well as custom and second-hand bicycles at affordable price points to attract customers in Utrecht ranging from students to older residents. Resources needed for the expansion are also outlined.

1. X- CULTURE BUSINESS PROPOSAL FOR
RE:CYCLES BIKES
Presented by Phurba Sherpa

2. Company
Small American private company majoring
in repairing and selling bicycles.
This company is located in Greensboro,
North Carolina.
2 full-time and 3 part-time employees.
Established by Merrit White in March of
2005.

3. Revenue of about $350,000 annually.
How to make the environment safe and
healthy.
Expand globally by modeling recycling
habits and showing that recycling can still
be profitable.

4. Products
Variety of custom and second-hand
bicycles.
Sells bicycle brands including Banshee,
Black Market, Eastern, Kona, Moots, Surly
and Yeti and does repairs.

5. Different Brands
Kona, a high-quality bicycle for serious
cyclists who strive for great performance.
Estimated cost for Kona would be around
$3,000.
Second best-known product is Yeti, which
cost about $3,500 to $4,000.

6. Customers
Popular in the local community.
Customers as usually ranging from 18 to
45 years old.
Prices for repairs are affordable.
For customers who want their own custom
made bike, White said that they note
down all the details that the customer
want in the bike and proceed according to
their needs.

7. Competitors
Lot of competitors over the year,
which has affected their market.
For instance, Higgins cycle shop in
Greensboro is trying to steal
customers by providing fast
services and expressing that
they have knowledge about all
models of bikes.

8. Global expansion

9. Global Bicycle Use
According to ibike.org, since the 1950s
bicycle rates around the world have
expanded.

11. Trends in the Netherlands
Expansion can be made In The Netherlands, which is
one of the most important destinations for bicycling.
Netherlands in 1950’s, like many industrialized
countries, had a huge decline in bike rates due to the
introduction of automobiles.
Unlike their industrialized, counterparts. The
Netherlands made significant efforts to change this by
encouraging people to ride bikes even if they had to
give-up cars.

12. SWOT Analysis

13. Products we recommended
Safety Accessories Convenience Accessories
Lights Bike baskets
Helmet Towing equipment
Mirrors Locks
Tires Bottle for convenience
Air pumps
Seats
Horn for Safety

14. The Netherlands ( Utrecht)

15. Choosing Utrecht
Our main goal is not to
focus all over The
Netherlands.
Focus on one city that is
not overly populated.

16. Utrecht
Utrecht is the fourth largest city with a population of 258,000.
Young city.
Customers range from 10-75 years old.
Utrecht is an educational city with universities. Advantage-
Students need cheap gears.
The main language is Dutch.

17. Customer data in Utrecht

18. Utrecht Competitors- Cycle Trend
Similar characteristics.
Cycle trend is not only based in Utrecht
but has expanded to different locations.
Cycle trend has a online presence.

19. Market entry mode
Joint venture.
Wheels Tweewielers could be a good
candidate for a joint venture market since
they are also trying to expand products
and digital presence.
This mode would be a money saver for
such a small company such as Re:cycles

20. Marketing
Quality product.
The Company will offer a discount and
make the price range affordable so that
the customers get interested in the
product

21. Resources needed
Additional Staffing:
A liaison with Dutch partner and source
companies
Job analysis- 4-year college degree, speaks English and Dutch,
international business major.
Recruit- Social media, bicycling forums, contacts in The
Netherlands.
Screening- interview with U.S. and Dutch partner.
Sourcing :
Sourcing from places like China can be cheap because the cost
is lower.

22. Thank you