Giant Bicycles and its Business tactics

1. Giant Bicycles
RAVITHEJA OLETY
HOW A SMALL COMPANY IN A SMALL
COUNTRY GOES GLOBAL

2. Introduction to Giant Bicycles
Vision – “World’s best bicycle company”.
Started as an OEM for global brands(SCHWINN & TREK)
Set up manufacturing plant in Netherland to enter European Market.
Wholly owned subsidiaries in Germany, U.K, France.
Started promoting own brands and continued servicing of OEM’s.
Rapidly created Giant Japan, Giant Canada & Giant Australia.
Took advantage of China. Within 10 years , became the 3rd leading brand in
Western Europe and 2nd in the United States.
Giant currently has 4 manufacturing bases(1 in Taiwan ,2 in China & 1 in the
Netherlands)
10 subsidiaries which focus on marketing the Giant brand worldwide.

3. Giant's Entry Strategies
Europe:
Problems faced :
Establishment of Single European Market(SEM)
Advantages for domestic players. Such as closeness to market, better
information, no tariff, reduced transport cost.
Strategies Used :
Setting up production plant and subsidiaries .
Hiring local staff familiar with local market and language.
Gained immediate market share by tapping the emerging mountain
biking market in Europe.

4. Giant's Entry Strategies
US:
Problems faced :
Reduction in orders by ODM customer(SCHWINN).
Strategies Used :
Speed up promotion of its own brand in U.S market.
Set up wholly owned sales subsidiaries.
Results :
Gained 9.56% market share.
1400 sales channels in the country.

5. China:
Problems faced :
Risks in a planned economy ,local culture and local competition.
Strategies Used :
Changed Green field venture into a joined venture with Chinese biggest bicycle
manufacturer.
Practice “Guanxi”.
Produced low priced bicycles.
Results :
Obtained 20% of china’s market in just 3 years.
Giant's Entry Strategies

6. Giant’s Advanced Manufacturing Techniques
1. Uses state of the art machinery & computer-enhanced
management.
2. Giant Production System- Produce good quality bicycles with the
facility of large scale manufacturing.
3. Advanced manufacturing techniques such as aluminum tubing
production , forging process, fluid forming and press forming.

7. Sourcing Strategies
a. Integrates its suppliers to form a “central – satellite factories”
system.
b. 100 suppliers were linked by this system globally.
c. Owns two component – manufacturing plants in Taiwan and China
which provides unique components to Giant.
d. “Global Sourcing– Decentralized Strategy”- lower cost, higher
quality .

8. Marketing Strategy
a. Global Corporation with regional sales & marketing in 60 countries.
b. “Global Giant , Local Touch” approach.
c. Regional offices collect , analyze & react to local needs.
d. Worldwide headquarters takes care of brand management , product R&D &
global marketing.
e. Uses global strength and caters to local demand by employing designers and
marketers that are unique to the country they are serving.
f. High coordination between local subsidiaries and headquarters.

9. Brand Management
Sponsorship of professional and amateur cycling team at international
and regional levels. Sponsors national teams such as Taiwan , Japan , China, U.S,
Australia.
Achievements of Giant Riders:
Laurent Jalbert – World no. 1 road ranking champion.
Rune Hoydahl- 10 international wins.
Myles Rockwell - World Downhill Championship.

10. R&D and Innovation Strategy
a. Highly committed to new innovations.
b. In early stages Giant centralized R&D to reach economy of scale.
c. Later, to cater the rapid changes Giant set up local R&D support centers.
d. These offices only generate ideas according to local needs and then transfer
to the center(Taiwan).
e. Innovation by Giant- Carbon fiber bicycle frame, Carbon Composite MCR
cycle, Giant Morph/ FlexX, Maestro Suspension, Hybrid Cycling Technology,
Compact Road Design.

11. THANK U
OPEN FOR QUERIES
2/8/2017