Schwinn Bicycles Marketing Case Analysis

1. What are the strengths and weaknesses of Schwinn? What opportunities and threats face the company?

A. Strengths

a. Schwnn brand is known for quality with more than 100 years experience manufacturing bicycles.

b. Schwinn is under new management with vision and direction. This new management is not afraid to compete within the high end target market.

c. Schwinn can offer high end consumers the prestige of "Handmade in the USA."

d. Under new management Schwinn has streamlined their manufacturing process to greatly reduce cost.

B. Weaknesses

a. Schwinn brand is known for heavy duty low cost street bicycles. The kind ridden by the target consumers' parents.

b. Schwinn has made poor decisions regarding product offering and have ignore the mountain bike market.

c. Schwinn was entering into market segments where it had little or no experience.

d. Schwinn had ignored the technologies of carbon fiber and modern alloys. Consumers are aware that there are major technology hurtle that Schwinn must overcome.

C. Opportunities

a. The purchase of Yeti Cycles would increase Schwinn's share of the mountain bike market by marketing under an established name. Yeti Cycle would also bring much needed technical expertise and credibility to Schwinn.

b. Schwinn has product offerings priced to compete within different market segments.

c. Emerging international markets are not yet saturated. Schwinn has opportunities to compete within the growing international bicycle market. Trade and government regulations must also be considered when selling outside of the US.

d. Schwinn can leverage technology advanced by its competitors as well as technology acquired through partnerships and purchase

e. Schwinn can grow their line of accessories and apparel.

D. Threats

a. Schwinn was not a respected brand among consumers.

b. Schwinn had a small share of the street and mountain bicycle markets.

c. Asian manufacturers are in direct competition with Schwinn in Asian and Western markets.

d. Schwinn would have to compete with the Wal-Marts and Targets that provide bicycles to the low end market.

e. Specialty bike shops display Schwinn alongside its competitors. Consumers have a side by side comparative selection. Schwinn only bicycle stores are no longer attractive to bicycle consumers.

f. Bicycle market are well developed within Western countries.

2. What evaluative criteria are used in purchasing bikes? Is the country of manufacturer effect important for mountain bikes?

A. Bicycle consumers evaluate bicycles for their technology to include low weight, durable, stylish, and performance. Consumers are also concerned about price and service. Also the demographic of peer ownership will influence consumer purchasing criteria. Clearly the college in Colorado had a few select brands. Some manufacturers are fortunate to capture these traits within their brand. Trek has successfully secured 24% of the market and is a respected brand.

B. If Schwinn is able to successfully market mountain biking as truly American than "Made in America" will positively impact consumer purchasing. As with automotive purchases, consumers of bicycles are driven to purchase the product that best meets their needs. Country of origin matters greatly when the quality is lacking. Schwinn will need to market American made the whole time knowing