Today in Canada, inflation, cost of materials and unemployment are fairly low an

Question

Today in Canada, inflation, cost of materials and unemployment are fairly low and are not increasing. Emerging economies are growing more rapidly than the Canadian economy in general. Foreign trade is relatively open, so manufacturers face intense international and local competition, with pressure to keep prices low and opportunities to utilize low-cost labour and raw materials from around the world. New manufacturing technologies, futuristic materials, and e-commerce are becoming more prevalent and affordable. The political-legal climate is favourable to business in Canada and most developing nations, whereas regulation is higher in the European Union. The standard of living is stable, the population is aging, and ethnic diversity is increasing. Today in the bicycle-manufacturing industry, manufacturers must invest heavily in research and development (R&D) to complete effectively on a global scale. Domestically, the bicycle manufacturing industry is fragmented, with the largest firm, BikePro, controlling just 24 percent of sales. The industry's customers are primarily local, independent bike retailers, a very fragmented group. The internet and eBay in particular, provides alternate channels for new and used bike sales. Bike riders, the ultimate purchasers, are interested in style, comfort, and high-tech features, as well as environmental and health issues. Suppliers of many bike components are small local manufacturers located in developing countries. However, few suppliers are more powerful, such as Humano, and internationally known maker of bicycle components and cycling gear. Regulators are not a significant force for bicycle manufacturer, but BikePro and others have numerous joint ventures. In one example, BikePro teamed with CSD, Shoetopia and other companies to produce the high performance cycle used by Olympic gold medalist Daniel Croft in the Tour de France and other races. BikePro has excellent R&D capability and effectively utilizes low-cost manufacturers in producing the more affordable products in its broad line of bikes. However, its Halifax factory produces its high end lines and can customize a bike to a customer's exact specifications. BikePro is beginning to push to improve the customer bike-buying experience. The company will limit the number of retailers it uses and requires retailers to stock a higher percentage of BikePro's products. In returns, it will provide training and funds to improve in-store marketing and increase customer loyalty.

what are the Major strategies using the match between strengths and threats ?

Explanation / Answer

the Major strategies using the match between strengths and threats are the one in which internal strengths of the company matched with external threats present in the industry.

BikePro has excellent R&D capability and effective utilization of low-cost manufacturers in producing the affordable products in its broad line of bikes. BikePro has experience of producing high-performance cycle through various joint ventures and a strong network of suppliers and retailers which has developed over time.
Now when it comes to external threats present in the industry than Halifax factory is the one which is producing high-end products and can customize a bike to a customer's exact specifications. Through which they are targeting consumer buying experience.

BikePro's Strategy is offensive in which they aim to convert these threats into opportunities by changing the position of their line of products by using resources and strength. BikePro can produce high-end parts at low cost through their R&D, and they are already modifying their network of retailers by focusing on consumer buying experience. They are not opting for the defensive strategy by ignoring this specific target consumers and targeting other segments.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.