1. High-design
bicycle manufacture.
Targeted that segment where there is no strong
bicycle tradition, & where quality and differentiation
was lacking.
Co-branding partnership to distribute and promote
their brand.
Promotion by organizing parties & trade shows
instead of normal advertising.
Instead of global recession Niche position in high end
segment leads the bicycle sales increase by 25%.
2.
Conflict with distribution channel.
Conflicting of decision regarding importing
of raw material.
Dependent on bicycle components from Italian craftsmen.
Use of expensive components.
Profit Margins was relatively low, despite increase in
sales and high price
3. Company
should shift over to machine made
component, which will be profitable for long run.
Company
should purchase low cost components from
countries like China.
Company
Importing
should create brand image of its own .
directly may increase in their sales up to
50% on final costs.