Cannondale
2-.Indenty key issues from the Broad Environment and discuss how they might impact this industry in the future We can differentiate the following key points:1. Federal Legislation. During the 1990s the US government enacted legislation that requires communities to include cycling in local transit infrastructure plan (for example Clean Air Act, set standards for air quality). So, people use more the cycle than before, and they spend more money in it. (more money more profit).2. The appeal of mountain biking. The number of mountain bikers in US grew from 200.000 in 1982 to 8'5 million in 1997. So the sales has increased considerably; three factors contributed to the popularity of mountain bikes:
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.
Common topics in this essay:
Carbon Titanium,
Air Act,
Innovation Cannondale,
Nowadays Cannondale,
Federal Legislation,
Broad Environment,
,
mountain bikes,
technological innovation,
competitive advantage,
spend money,
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Acceptance Essays
