BALDWIN BICYCLE COMPANY In May 1983‚ Suzanne Leister‚ marketing director of Baldwin Bicycle Company‚ was mulling over the discussion she had had the previous day with Karl Knott‚ a buyer from Hi-Valu Stores. Hi-Valu operated a chain of discount department stores in the North West. Hi-Valu’s sales volume had grown to the extent that it was beginning to add its "own-brand" (also called "private-label") merchandise to the product lines of several of its departments. Mr. Knott‚ Hi-Valu’s buyer for
Premium Department store Bicycle Cycling
BALDWIN BICYCLE COMPANY Baldwin Bicycle Company has been a bicycle manufacturer who produced various high quality models. Due to competition in 1981‚ the firm’s sales revenues significantly dropped in the following two consecutive years. In addition‚ it could only operate at 75 percent of the plant’s capacity. In May 1983‚ the firm received a proposed production plan of sporting bicycles‚ named Challenger‚ from Hi-Valu. There would be two types of direct costs associating with the new bicycle
Premium Bicycle Inventory Corporate finance
Baldwin Bicycle Company Baldwin Bicycle Company is its own independent bicycle shop that has been in business for almost 40 years. Last year Baldwin had sold 98‚791 bikes which accounted for nearly $10 million in sales for 1982. Suzanne Lesiter is the marketing Vice President of Baldwin and has just been offered a proposition from Karl Knott‚ a buyer from Hi-Valu to possibly start producing bikes for them. Baldwin had never conducted any business with a chain department such as Hi-Valu since it was
Premium Bicycle Variable cost Costs
BB 1 Baldwin Bicycle Company Objectives of Session 1. Practice in applying a comprehensive financial analysis framework to a “new business” opportunity. 2. Blending strategic marketing analysis and financial analysis. 3. Blending corporate strategy with marketing strategy This case is an excellent one for contrasting the conventional framework (Relevant Cost Analysis) with the Superior (?) framework (SCM) BB 2 1973—15 million bikes sold “bicycle boom” (Baldwin 135‚000) 1982—10 million bikes sold
Premium Marketing Cost Costs
Question 4 - Make a recommendation regarding the future strategic direction if the company. According to the SWOT analysis‚ MD is regarded as a star taking the BCG matrix. Therefore MD should hold its position within the market. In order to do this‚ we have recommended a few strategies for MD to maintain its position. To maintain its star position‚ MD needs to be proactive and be constantly aware of its environment. Currently there is an opportunity in the Chinese market. MD has plans to penetrate
Premium Fast food Hamburger Nutrition
seminar Strategic process and strategic analysis (Baldwin bicycle company case) Required questions: a. On the basis of Michael Porter’s (1980) competitive strategies‚ how does Baldwin currently compete? Justify your answer. In this case‚ Baldwin currently competes on differentiation strategy. Baldwin had been making bicycles for almost 40 years and there are ten models in the company’s line. The company only focuses on making bicycles ranging from a small beginner’s model with training
Premium Porter generic strategies Profit Marketing
Case Summary: Baldwin Bicycle Company has long history in manufacturing bicycles. Currently‚ they receive a Challenger deal from Hi-Valu. This proposal contains some special requirements such as to have larger inventory‚ sell at lower price‚ and have “Challenger” name on bicycle tires. Suzanne Leister‚ marketing vice president of Baldwin Bicycle Company‚ is considering whether or not to accept this proposal. The issues are listed below: The Relevant Cost of Manufacturing a Challenger Bike
Premium Investment Inventory Variable cost
suffering because of increasing competition and loss of market share especially in the mountain bike market segment. Background- Schwinn is a bicycle brand that for years had 25 percent of the market. Schwinn did not adapt to the mountain bike trend in the 1980 ’s and as a result its sales suffered. The sales suffered so bad that Ignoz Schwinn sold the company to Zell/Chilmark. Schwinn ’s turnaround seems to be going well. Today Schwinn has five percent of the $2.5 billion annual retail bike market
Premium Bicycle Marketing
A Case Study on Pricing Strategy Schwinn Bicycles J. Paul Peter (University of Wisconsin-Madison) Inside a plain brown building in Boulder‚ Colorado‚ is a shrine to an American icon; the Schwinn Bicycle. Some mud-caked from daily use‚ some shiny museum pieces – dozens of bikes stand atop file cabinets and lean against cubicles. Amid the spokes and handlebars‚ a group of zealots is working to pull off the turnaround of the century in the bike business. Brimming with energy‚ they are determined
Premium Bicycle Mountain biking Mountain bike
Oscar M. Inocencio Chester V. Lagutin Felomena C. Baal Edsel Cariz J. Tiu 12 October 2012 “Baldwin Bicycle Company” Background of the Study: Baldwin Bicycle Company (BBC) is a full-line bicycle manufacturing company with 40 years of experience. In 1982‚ BBC has revenue of over $10M for 98‚791 units produced. BBC exclusively distributes through independently-owned retailers‚ their bicycles are known for their above-average quality. In May 1983‚ a rapid-growing Northwestern discount
Premium Marketing Bicycle Capacity utilization