2. How does Dirt Bikes provide value tocustomers
The company provides value to it’s customers by designing and manufacturing
custom motorcycles of high quality, and by servicing those motorcycles. Proof of the high
quality of the motorcycles can be seen in the number of races that the brand wins each year.
Other ways they provide value to the customer are with the policy of listening to customers
feedback on how to improve the product, and with the newly formed Dirt Bikes USA owners
Steps to improve:
Dirt Bikes sells primarily through its distributors. It maintains a small customer database with
the following data: customer's name, address, telephone number, model purchased, date of
purchase, and distributor. These data are collected by its distributors when they make a sale
and forwarded to Dirt Bikes. Dirt Bikes would like to be able to market more aggressively to
its customers. It would like to be able to send them e-mail notices of special racing events and
of sales on parts. It would also like to learn more about their interests and tastes: their age,
years of schooling, another sport they are interested in, and whether they attend dirt bike
racing events. Additionally Dirt Bikes would like to know whether they own more than one
motorcycle. (Some Dirt Bikes customers own two or three motorcycles from Dirt Bikes USA
or other manufacturers).
“Most people ride dirt bikes for fun. They enjoy being out doors and
finding new places to ride. They can follow an old trail or blaze a new one.
Riders are basically free on their dirt bikes, just be sure that you know what
your doing and do not get lost. Also make sure the area you are riding
permits the use of dirt bikes.”
5. What informationsystems best supportthat strategy?
Developing an E-Commerce strategy
Dirt Bikes'managementbelievesthatthe companycouldbenefitfrome-commerce.The company
has soldmotorcyclesandpartsprimarilythroughauthorizeddealers.DirtBikes advertisesinvarious
Webpage developmenttool (optional)
3. Who are Dirt Bikes major competitors? Howdotheir products compare in
prices tothose of Dirt Bikes? What are some of the product features they
• WR 250 $6,298
• TE 510 $7,898
• TC 250 $6,298
• TC 510 $7,198
• SX 250 $6,298
• XC 250 W $7,148
• XC 505 F $8,248
• CRF® 250R $6,449
• CRF® 450R $7,199
• WR 250F $6,399
• WR 450F $7,199
4. What are the competitive forces that canaffect the industry?
Some competitive forces that could affect the industry are: increased internet presence
could allow both Dirt Bikes USA and it’s competitors to find cheaper parts and labor more
easily, an economic downturn could occur and reduce peoples spending on leisure activities.
Since Dirt Bikes USA came into the business with a product that claimed a better
quality, they are ideally suited to pursue this as a competitive advantage. They can work on
increasing quality of not only their products (the motorcycles) but they could also strive to be
the best in customer service, and product innovation.
1. Which activitiesat Dirt Bikes createthe most value?
The President, Steven McFadden and the CEO, Carl Schmidt both have engineering
backgrounds and are motorcycle enthusiasts. This leads to an informal and open corporate
culture. This corporate culture stresses attention to detail and high quality. The president and
CEO stress continual learning and invite innovation by inviting all employees, distributors,
and retail customers to contribute ideas on how to improve the company’s products and