Question

-What is the competitive advantage of Detroit Bikes? Brand? Low-cost? Innovation? Niche? Diversification? Please explain. How would you characterize their target market and brand?

-Noting all we have discussed in the course this far, what would you suggest is the best strategy to grow the business? What are the opportunities and risks with this growth strategy?

Answer 1

Ans- Detroit Bikes are the largest selling bicycle frame manufacturing in America. Detroit bikes are quality commuter bike with an American Made frame.These are US Made frames use a top of the line steel called Chromoly.

The competitive advantage of Detroit Bikes is a combination of their brand as well targeting a specific niche. People not only see Detroit Bikes as a brand bringing jobs back to America, but back to the home of American manufacturing, this also helps create the perception that their bikes are high quality further than made in America due to Detroits image as being a manufacturing hub of America

This brand helps Detroit Bikes target the niche market of ethically responsible consumers that is rapidly growing. Ethically conscious people purchasing a bike will not only look at the environmental factors but the economic ones also, as purchasing a bike from Detroit Bikes is supporting Detroitand its people instead of markets abroad. This target market is large in Gen X and Gen Z as these generations often care more about socially and environmentally conscious factors.

They should increase their factors of production in Detroit and grow their business in Canadian market.This is because Detroit is attracting risk takers and a lot of creative people right now.It has a Gold Rush feeling to it from bar owner to music festival founder to bike manufacturer.