Specialized Bicycle Components

Specialized Bicycle Components

Company Background:

With the company slogan of "Innovate or Die", Specialized Bicycle Components was founded in 1974 by Mike Sinyard. Specialized Bicycle Components who is one of the major manufacturers of bicycles and bicycle equipment is situated at Morgan Hill, California, USA. In 1978 and 1979 Specialized produced the first foldable clincher tire called the TURBO and the company's first bicycles, the ALLEZ which is for road racing and Sequoia touring frames. They revolutionized the biking industry, being the first to introduce mountain bicycles in the form of StumpJumper, to the general public. The StumpJumper as a novel product has an original model that Smithsonian Institute has placed in their museum. In 2001, a minority share of Specialized Bicycle components was bought by a Taiwan based bicycle manufacturer, Merida. The company originally assembles and manufactures their bicycles in California, however, Specialized bicycles is currently being manufactured in Asia particularly in Taiwan and China. True to their company slogan, the company to date still continues to create cutting-edge bicycle products that they introduce to the market such as the physician-designed bicycle seats and the three-spoke wheel that is designed to cut bike racers' times, all made from high-tech materials. To date, they have 25 bicycles lines that ranges from the high-end S-Works racing series as well as Hotrock, a line of bicycle for children to the cheaper model, Hardrock. Research and development of the company's bicycles is operated in the Santa Cruz Mountains.

Competitors:

Trek Bicycle Corporation:

Trek was founded by Dick Burke and Bevill Hogg I 1976. Rather than selling their bicycles in retail outlets, trek primarily sells their bicycles in special bicycle stores which created an image of the company as a supplier of bicycle equipment to the bicycling enthusiasts thus, becoming among the favorite brands of the connoisseur market. Trek's most important market is independent bicycle shops.

Cannondale Bicycle Corporation:

Cannondale was founded in 1971 by Joe Montgomery originally manufactures backpacks and bags for camping. The company is the leading manufacturer of mountain, road racing, multi-sport, recreational, and specialty bicycles wherein it sells 80 bike models through specialty bike retailers in 70 countries as well as co-sponsoring in bike racing teams. Not able to drive down cost when the company ventured into the motor sports business, the company went bankrupt on 2003 thus, selling their assets to Pegasus Partners II, L.P., forming the privately-held Cannondale Bicycle Corporation.

Pacific Cycle:

Pacific Cycle was founded in 1983. The company designs and markets bicycles as well as scooters under the DYNO, GT, InSTEP, Mongoose, Murray, Pacific Outdoors, Powerlite, Roadmaster, and Schwinn brands. Mass merchandisers such as Wal-Mart, sporting goods chains and independents suppliers serves as the selling outlet of Pacific Cycle.

Giant Manufacturing:

Giant Manufacturing, a Taiwan based manufacturing company founded in 1972 is the largest bicycle manufacturer in the world. The company manufactures biking apparel and accessories and bikes for competition, exercise, recreation, and transportation. The company sells their products in cycle shops on seven continents, in more than 60 countries, as well as about 20 company-owned stores.

Analysis:

Specialized with their company slogan "Innovate or Die" serves as the leading innovator in the bicycle industry which consistently strives to create new and better bicycle technologies. In 1978 and 1979 Specialized produced the first foldable clincher tire called the TURBO and the company's first bicycles, the ALLEZ which is for road racing and Sequoia touring frames. Another milestone for Specialized was when they introduced mountain bikes to the general public through what they call "the bike for all reasons", the StumpJumper which glides smoothly through paved roads and also great for the great and uneven outdoor trails like mountain trails. Selling their products exclusively in bike shops, loyalty is created between the bike shops and Specialized. This loyalty that formed a close-knit relationship served Specialized well as the shops knew and trusted the products of the company that they consistently recommend the products of Specialized to their customers. From that, the company gained more sales as salespeople of these shops has the ability to have their customers to buy the products of Specialized which the shops knew and trust.

The company's staff were also biking enthusiast which helps them develop new innovations to the company. In 1983, the world's first mountain bike racing team was formed by Specialized. Then, Specialized teams often win competitions using products of the company. The company's professional bikers tests rides their products before it was released to be sold t the market, thus, with the company's track record of releasing professionally tested products which are tested for one year before a product is released, the customers craves and appreciate to buy and ride the most technologically advanced products that the company has manufactured and tested with their professional bikers. A study by Dr. Irwin Goldstein asserts that bicycling can possibly result to male impotence. The company then released the solution for this said problem, the Body Geometry which shifts