Mountain Bicycle Industry

Paper Summary:

This study was undertaken with a purpose of analyzing and making recommendations based on the analysis of situation and strategy identified within the mountain bicycle industry. In particular, close attention is paid to Cannondale Corporation, the leading manufacturer and marketer of high-performance aluminum bicycles and its immediate rivals. Assessment of the nature and strength of competitive forces in the mountain bike industry is based on the five factors analysis and allow to identify key success factors that are a must for survival and profitability of any company that operates in the mountain bicycle industry. A graphical representation of current rivals allows to judge strength of the competition in the industry and influence the choice of alternatives and eventual recommendations for Cannondale corporation.

From the Paper:

"The global bicycle industry, including bicycles, parts and accessories, is estimated to have total retail sales in excess of $20 billion. The bicycle-manufacturing segment of the industry produces approximately 100 million units per annum. The global market for bikes is reported to be dominated by just a few big players, many of whom seem to bounce from owner to owner, and from cash crisis to cash crisis, on a distractingly regular basis. (bikebiz.com). Even though people seem to be "saturated" with bicycles and the mountain bike boom is proclaimed to be over (bikebiz.com), comments of the cyclist community allow to conclude that the industry's and segment's decline is not likely. It was also noted that the worldwide cycling industry is waiting for the "next big thing" in cycling which will likely shift position of major players in the industry if they can't keep up with the trend."

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