Mountain Bike Case Study
Introduction: * Adam Craig is a struggling entrepreneur * 2008 Olympic Bike Racer * Owns Golden Dreams Bike Rental and Repair Store * Located at Nesters Market in whistler B.C * A few competitors * Bought business 1 year ago * Previous owner was unsuccessful for 5 years
Problem: * Why is Adam Craig not making a profit in his current location?
Product:
- Doesn’t have enough inventory to make money
Place:
- Inconvenient location with poor travel options for customers
Price:
- Reasonable compared to other companies
Promotion:
- Choose more effective ways of advertising, (sponsor races- PR)
Key Findings/ Facts/ Assumptions: * Competition- 4 Main competitors ranging from $40-$125/day * One competitor in Squamish provides shuttle service * 22 Hotels whistler total * 8 bike friendly * 2 fully equipped with bike wash, secure storage, tuning stations * average # visitors in the resort per day- summer 2009 was 12,550
Strengths, Weaknesses, Opportunities, Threats
Competitive Analysis
Target Market * Geographically * Whistler Tourists * Demographically * All Terrain bikes- Families with parents aged 25- 40 * Mountain Biking- 15-30 * Psychographic * People who enjoy the outdoors * Extreme people
Alternative Number 1
- Purchase Van for transporting tourists (Product development) Pros: - Does not have to move locations - Possible charge for shuttle service= additional revenue - Shuttle could be used for other things Cons: - Costly- Buy a van - Vehicle maintenance - Still not good location - Need a Class 4 license
- Moving location (Market Penetration) Pros: - Better visibility to customers - Higher traffic - Larger space for workshop and additional inventory
Cons: - Higher rent - Need more inventory - Moving expenses
- Offering package deals working with hotels
Problem: * Why is Adam Craig not making a profit in his current location?
Product:
- Doesn’t have enough inventory to make money
Place:
- Inconvenient location with poor travel options for customers
Price:
- Reasonable compared to other companies
Promotion:
- Choose more effective ways of advertising, (sponsor races- PR)
Key Findings/ Facts/ Assumptions: * Competition- 4 Main competitors ranging from $40-$125/day * One competitor in Squamish provides shuttle service * 22 Hotels whistler total * 8 bike friendly * 2 fully equipped with bike wash, secure storage, tuning stations * average # visitors in the resort per day- summer 2009 was 12,550
Strengths, Weaknesses, Opportunities, Threats
Competitive Analysis
Target Market * Geographically * Whistler Tourists * Demographically * All Terrain bikes- Families with parents aged 25- 40 * Mountain Biking- 15-30 * Psychographic * People who enjoy the outdoors * Extreme people
Alternative Number 1
- Purchase Van for transporting tourists (Product development) Pros: - Does not have to move locations - Possible charge for shuttle service= additional revenue - Shuttle could be used for other things Cons: - Costly- Buy a van - Vehicle maintenance - Still not good location - Need a Class 4 license
- Moving location (Market Penetration) Pros: - Better visibility to customers - Higher traffic - Larger space for workshop and additional inventory
Cons: - Higher rent - Need more inventory - Moving expenses
- Offering package deals working with hotels