Essay About Firms Strategies And Mikes Bike Report

Mikes Bike Report
MikeBikesFinal Report- 2017[pic 1]To: Board of DirectorsDylan Chisholm (201006059)R.D. Chisholm (201007930)Molly MacDonald (201006408)April 4th, 2011MikeBikes: Final ReportIntroductionReport 4 is the final report for the Mikes Bikes simulation, directed to the Board of Directors of MikeBikes. In this final report, stated will be our firms strategies, the results of marketing and our operations, which will be based on factual information retrieved from our quantitative analysis. There too will be a SWOT analysis, which will support the reasoning for our results thus far and will allow for us to make recommendations in order to achieve future goals.StrategyOver the course of the 7 years in which MikeBikes was in activity there have been numerous strategies put into place. As a result of both external and internal influences the strategy was changed and altered in order to keep up to the dynamic changes in the market. In the first 3 years MikeBikes saw great success from the mountain bike and the strategy that was used was to have a low cost bike with high inventory. This strategy was extremely effective, and so the firm was hesitant to introduce a new bike. However in 2014 a new youth bike was introduced and was launched in 2016. The result of introducing the youth bike was not as expected, and in the end there was a loss of profit for the remaining 2 years. The strategy implemented with the DMR youth bike was low inventory and high cost. Analyzing this now it is obvious that this strategy was unsuccessful and that is for a number of reasons. The market for the youth bike was more competitive than expected, and therefore there were other bikes that were inexpensive and more-so available. Our firm also made the mistake of having an overcapacity of bikes, and therefore overstocked. This is a mistake that we have now learned from and in the future will match the number of bikes bought with amount able to be stored. Quantitative Analysis of Sales Growth        Our firm saw very little change in sales throughout the course of the 7 years that it was in the market. Overall, our sales growth was very inconsistent, with some years having great growth (2011) and other years where our growth was well below the industry average (2016). In comparison to our top rivalry, BMX, our sales were either above by a large percentage or down by a large percentage. Our biggest downfall was in 2016 where our firm saw no growth and were 7% below the industry average, whereas BMX had a booming growth of 37%. The following year, however, MikeBikes was the only firm in the industry that saw growth, although it was only by 1%.