Question

Case:- DETROIT BIKES: BECOMING THE BIGGEST BICYCLE MANUFACTURER IN NORTH AMERICA. by Ivey publishing

1. Apply the PEST and PORTER e-scan model to the Detroit Bikes business model. Based on this, what is your take on the attractiveness of their industry as a business opportunity?

2. 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?

3. 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

1. Detroit bikes is one of the biggest bicycle manufacturer in North America. Itvhas a string competitive adavntage over their competitors and have a unique postion the majority of competitor market.The main attarction and opportunity for the growth of the organization are the strong global brand image all over the world.

2). The main competitive advantage of detroit bikes are the low cost and high quality

Innovation

The new features in product and better services increased tge customer delight and the increased demand for Detroit bike. Detroit become a global brand abd it took a competitive positioning based on certain factors whiche provide strong basement for the industry.

The Detroit company used the combination of cost leadership, differentiation and focus strategies inorder to copeup with the competition. They always provide a longlasting product with little maintenance.

The product differentiation helps to achieve the growth objectives by emphasizing on the unique product features. The unique and distinctive brand logo bulit a strong brand image in the minds of customers..

Focus strategy

Using this strategy company concentrated their target matket on certain segments.It helps in the effective functioning of niche marketing.

3). The best strategy to grow the business are the threemodels

Market penetration

Uding this strategy Detroit lowered the price of their product and used many promotional and marketing strategy. This lead to boost the sale in the market. They offered many disounts, offers, and product offered in attarctive packages.

Product development

It is very much essential tool to attract the customers. The market researches, and the development investments for innovation and new product development. Through oroduct development they could offer novel or new products to gain growth in existing customer market.

Market expansion

By using market penetration and the product development strategy they could enter into new market segments including the competitor countries also.Theain factors lead to this expansion are the low cost or affordable price, strong brand name and goodwill jn ghe minds of customers and attractive promotional startegies. It is well known for attracting new customers and beciming a market leader.

Product diversification

The diversification strategy includes the cost leadrship which leads to minimization of cost and existing infrastructure so they could explore new product opportunities and features in the market.

These are basic four growth strategies used by Detroit Bikes.