LB160 TMA01 Brompton Bicycles
Brompton Bicycles gets ready to increase their market share
Brompton Bicycles anticipates increase of its folding machines this year with estimated profits to £7m and a pre-tax profit of £925,000.
Will Butler–Adams, Managing Director of Brompton Bicycles, recognises that they must see a substantial increase in sales to remain a competitor in a fast growing international market. Volume, lengthy lead times and slow production methods prevented Brompton Bicycles being able to meet production demand in the past; this has impacted the business in losing market share of a growth between 20% to 25% a year. To boost production to more than double and increase market share, Brompton Bicycles is introducing double shift patterns, more efficient systems and undergoing a production refurbishment and change in management.
Competition is increasing but Bulter-Adams believes that Brompton Bicycles have the best product, however, despite the design being copyright protected, the trademark patents expired which presents a problem in low-wage Taiwanese competitors producing a similar product at a cheaper cost.
Brompton Bicycles manufacture their products in their London factory by highly trained staff, they outsourced non-core elements in order to reduce costs and managed to retain the skilled machining and complex engineering in order to maintain the product quality. The company’s founder, inventor Andrew Ritchie, does not want the company to become so obsessed with growing that they lose sight of the quality in the product.
The business is looking to focus on overseas sales, although they have a small amount of outlets in the US, they need to grow their overseas sales but in order to do this, Brompton Bicycles are looking to a more structured marketing strategy and the new brand awareness approach taking them forward.
(word count 284)
Brompton Bicycles anticipates increase of its folding machines this year with estimated profits to £7m and a pre-tax profit of £925,000.
Will Butler–Adams, Managing Director of Brompton Bicycles, recognises that they must see a substantial increase in sales to remain a competitor in a fast growing international market. Volume, lengthy lead times and slow production methods prevented Brompton Bicycles being able to meet production demand in the past; this has impacted the business in losing market share of a growth between 20% to 25% a year. To boost production to more than double and increase market share, Brompton Bicycles is introducing double shift patterns, more efficient systems and undergoing a production refurbishment and change in management.
Competition is increasing but Bulter-Adams believes that Brompton Bicycles have the best product, however, despite the design being copyright protected, the trademark patents expired which presents a problem in low-wage Taiwanese competitors producing a similar product at a cheaper cost.
Brompton Bicycles manufacture their products in their London factory by highly trained staff, they outsourced non-core elements in order to reduce costs and managed to retain the skilled machining and complex engineering in order to maintain the product quality. The company’s founder, inventor Andrew Ritchie, does not want the company to become so obsessed with growing that they lose sight of the quality in the product.
The business is looking to focus on overseas sales, although they have a small amount of outlets in the US, they need to grow their overseas sales but in order to do this, Brompton Bicycles are looking to a more structured marketing strategy and the new brand awareness approach taking them forward.
(word count 284)