Cannondale

The revenues had been growing exponentially during the 1980s, so Cannondale the leader of the high-performance mountain bike segment had grown greatly. The same has happens with full-suspension system. A mature market is dangerous because it signifies that cycle of the product is near to the end, so our products are remaining obsolete. Cannondale was the first firm in selling mountain bikes. We can say that the market is saturated, so to keep the growing levels it will be necessary more investment and improvement. They have a name inside the markets, so on one hand they have a recognized prestige, but on the other hand they have to keep the quality of their products if they don’t want to miss the loyalty of their customers.

• More adults were turning toward outdoor activities in their leisure time. They were the first to offer affordable large-diameter aluminum-tube bicycles in the early 1980s. Actually, this is the strategy of Cannondale, but they need more differentiation to be the company said to be the best. Nowadays all the bikes manufacturers, including companies that manufactured inexpensive bicycles, it is using aluminum; so they have to use new raw material like Carbon or Titanium to innovate. They have based his strategy in technological innovation. The growing of cycling industry has decrease after 1995.