Schwinn Case

Case Study

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Institutional Affiliation

Case Study

Question 1.

I. Strength

a) The company is has a new management team with a different vision to be able to compete with other bicycle brands

b) It is an established brand among many households with over 100years of operation.

c) It has the capacity to offer handmade products made from U.S.A to high-end consumer along with the traditional brands.

d) Schwinn new management team has been able to produce bikes at low cost retailing from $100 to $2500. This gives customers a wide variety of choices.

II. Weakness

a) The management is slow to adapt to new trends which made them lag behind in the mountain bike market.

b) Schwinn products are made in Asia yet most American buyers want to purchase

d) International bike market is not yet flooded; Schwinn can penetrate the market and establish itself strongly.

Threats

a. Schwinn is not respected among bicycle consumers who view it as an old brand.

b. Mountain bike share of Schwinn is small.

c. Schwinn has to compete against better models displayed in bicycle shops making it more difficult for them to compete against established brands.

d. Schwinn image is affected negatively by not producing from the United States when their competitors are.

3. Mountain biking sport is more of an America, it makes sense to manufacture the bicycles in the same country and use that as a marketing strategy. Many consumers prefer buying products made from U.S.A and this could prove important especially when the quality is not at the same level as competitors.

4. Having over 100 years of operation, Schwinn has established itself as producers of heavy-duty bicycles at low cost. The pricing range of $100 to $2500 helps the company penetrate the high-end market while still maintaining old consumers market. Thus, by focusing on both ends of the market and appeal to the broad consumer base they are able to increase their market