The Dutch company BICILETA has managed to become a leader in the production of innovative bicycles in thirty years of activity. Much of the company’s success is due to its founder, Marina Pedales. It is thanks to her efforts that the company has been able to significantly increase its production volume. BICILETA is no longer a small bicycle store but a company with 57 employees. However, a number of managerial problems will have to be solved for the company’s further development. These include developing a line of new products, entering new markets, and ensuring that the firm’s new director will successfully develop the firm.
Although the last fiscal year was quite successful for the company, it should be taken into account that the number of competitors in the market continues to grow. Eastern European and Asian manufacturers are a particular concern – the company may have to reduce the prices of manufactured products in order to compete with them. The production of new innovative models, such as “Cruiser,” may help the company to retain customers. It should also be noted that rising costs, including labor costs, are one of the company’s key concerns. Prices in raw material markets have increased due to a number of political events. The company’s survival against the onslaught of various disruptive factors depends on whether BICILETA can quickly and successfully implement a fundamental strategic reorientation.
Since, according to experts’ opinions, the possibilities to expand production in the domestic market are limited, the company has decided that it is necessary to enter foreign markets. Despite the difficulties at the initial stage of such a transition, it is expected that this decision has great potential in the medium term. The success in the new market depends on whether cooperation with local dealers can be arranged. Experts predict a two percent decline in demand in the domestic market, which does not correlate with BICIBICLETA’s goals. As noted, defining a sales strategy is an aspect on which the company should put a lot of focus. If the corporate image is built correctly, it will be possible to win back market volume from other sectors.
In addition to the Cruiser model, the former company executives developed an electric bike called the “MoBike.” Its features are environmental friendliness, high speed, and ease of operation. An intelligent control system allows users to determine the required motor power effortlessly. In addition, even in bad road conditions, it is easy to control the bike due to its nature. The innovativeness of this product will help the company avoid a drop in demand among customers. The difficulty is that it will take about ten person-years to develop the model fully. In addition, there is a risk that the product will be in less demand in the foreign market for one reason or another. For example, the price of this electric bike may be too high for the inhabitants of Eastern Europe, where the standard of living is lower than in the Netherlands.
Since Veronica Velocista took over the company, BICLETA’s financial situation has improved significantly. The favorable market situation contributes to this – there is now a great demand for sporting goods in the Netherlands and abroad. Some issues concerning the company’s management still need to be resolved. The company will have to work out a new sales strategy, which will consider the company’s goals in developing new markets. Moreover, it is necessary to consider how to fight competitors and reduce costs.