Introduction
Hawk Bicycle Manufacturer is a company proposed with the aim of manufacturing bicycles that are ecological compatibility and made of carbon fiber. The company will be constructed in Male, Maldives, and will deal with various target market sections like the recreation, work, youth, speed, and mountain sections (Addison, 2019). The company will operate in multiple regions internationally and has a subsidiary of X Bicycle Company. The company is strategizing to consider the increasing popularity of cycling as a sport and means of exercise and the growing trend towards environmentally-friendly transportation (Elbashir, 2017).
The company is well organized into a leadership team that performs its roles depending on the authorities each has. For instance, Mariyam Najuwa, the company’s president and she, plays a key role by providing a driving force for the establishment of Hawk Bicycle Manufacturer (Elbashir, 2017). Mariyam has a deep understanding and knowledge of the industry and the local market and has worked in the bicycle manufacturing sector for several years. She has business development and experience in strategic planning of the company establishment.
Another person in the company is VP-Finance Udesha Widanapathirana, who has the experience and financial knowledge of the leadership team. Udesha has been an instrument in funding and resources for the company’s operations and establishment (Erickson, 2015). Heshani Dananjibalasooriya is VP-Marketing, and Business Development, also in the leadership team responsible for promoting the company’s products and services and products internationally. She also identifies new business opportunities for the company. Lastly, we have Madelyn Morales, the VP-Sales and Operations, responsible for the company’s day-to-day operations and overseeing the sales team. Madelyn is also responsible for establishing a robust distribution network for the company’s products and building a strong sales team. The company’s management team is well-strategized and composed of experienced and knowledgeable professionals who utilize their knowledge and experience and use their wealth for the excellent outcome of the company (Firmansyah et al., 2022). The establishment drives its growth and success.
The company’s vision is to become a leading provider of sustainable and environmentally-friendly bicycles in the Maldives and beyond. Again, the manufacturer aims to manufacture high-quality bicycles that cater to different market sections and are made of eco-friendly carbon fiber. It established a set of objectives for the company to achieve its vision and mission. These objectives include developing a loyal customer base, increasing profitability, maintaining a sustainable business model, increasing market share, and establishing a strong brand identity (Lumbanraja, P., Dalimunthe & Siahaan, 2019).
To achieve the above objectives, they develop strategic planning that is essential to the company. An example of the strategy is establishing a solid distribution network to help the company reach its target market. This strategy involves identifying and partnering with essential distributors and suppliers who share the company’s vision and mission. The following strategy focuses on investing in development and research. This ensured that the company’s bicycles remained at the cutting edge of innovation and technology (Meinhold, 2021).
For the company to make effective decisions corresponding with its strategic goals, they employ several techniques from its MBA toolkit. The company used SWOT analysis, which involves examining the company’s strengths, weaknesses, opportunities, and threats. This enables the company to recognize its potential risks and competitive advantages. Again, the company employed market research techniques to make them understand the needs and preferences of its target market sections.
Marketing opportunities
Hawk Bicycle Manufacturer recognized a wide range of marketing opportunities enabled by the company’s innovative manufacturing technology. The company utilizes different manufacturing processes to realize bicycles made of carbon fibers. This technology made the company provide more cost-efficient and practical bikes. There are several marketing opportunities, one of which this technology provides is the ability to offer more outstanding performance and flexibility in the style of the bikes. This enables the customers to customize their bikes and meet their specific requirements. This opportunity is relevant to the market sections that the company is targeting. For instance, the company can offer different designs and styles of bikes for each market section depending on the preferences and specific requirements of the customers.
Moreover, the following marketing opportunity can provide more sustainable and eco-friendly bicycles. The bike components, such as carbon fiber, are more environmentally friendly than traditional materials such as aluminum or steel. When this material is used in the manufacturing process, the company can provide environmentally sustainable, high-quality, and innovative bicycles. This is essential for customers looking for products that align with their values and are environmentally conscious in the market. Lastly, the cost-effectiveness of the manufacturing process is another marketing opportunity that can produce several parts of the bike in smaller parts to reduce the company’s production costs.
Pestle Analysis
During establishment, the company becomes aware of various political, economic, social, technological, environmental, and legal factors in the business operations. These factors were analyzed in the pestle as follows:
The first was that political factors substantially impacted the company’s achievement. In this, the government’s contribution to human resource and technology development provides a positive factor for the company’s establishment. Again, introducing policies for recruiting high-tech talent also provides a substantial benefit for the company in hiring and retaining the right talent for both workers and customers. In addition, the government’s focus on research and development efforts has been a priority since 2000. This provides opportunities for the company to innovate and collaborate internationally with other customers and stakeholders.
Secondly, there are economic factors in Hawk Bicycle Manufacturer. One of these factors is the unbalanced demand and supply for bicycles, which can cause cash flow issues for the company. Another is the bike price which is lower than the cost of DRAM, which can be a significant challenge, and the possibility of recession is also apprehension for the industry. Lastly, improvements in efficiency levels can also lead to excess supply, resulting in the closure of firms because of low revenue of the company outcome.
Thirdly, social factors include human capital development, which is a crucial emphasis for the company. Again, training the company’s workers is aimed at increasing knowledge of resources. This led to the development of skilled workers that contributed to the growth and success of the company. Nonetheless, the information and communications industry also has professionally built labor divisions internationally, providing opportunities for the company to establish partnerships and collaborations.
Another factor is technological factors that play a crucial role in the bike industry. Taiwan manufacturers depend on technology, and foreign governments can also be reluctant to transfer technology worldwide. Thus the company needs to emphasize building solid partnerships and collaborations to influence and benefit from technological improvements.
Moreover, Environmental factors are also one of the factors that play a role in the Hawk Bicycle Manufacturer. Firstly, the company’s region location is highly favorable for DRAM manufacturers, thus providing ease in capacity expansion worldwide. The company can use this opportunity to expand and grow its business operations internationally.
The last factor is Legal factors in the company, including protection from IP rights and limitations through contracts, which can improve the company’s success. The company must ensure that this complies with all legal requirements to prevent legal disputes or issues.
SWOT Analysis
SWOT analysis is an essential tool in any business management in that it helps businesses in their strategic planning process. In this company, a wide range of strengths, weaknesses, opportunities, and threats influencing the company’s management, establishment, and success. They are explained as follows:
Beginning with Strengths: One of the essential strengths is its substantial investment funding from its original company. This enables the company to invest in development, research, marketing, and other business sectors for a good outcome. Additionally, the company has the latest technology access in the field, which makes the company manufacture high-quality products. Lastly, the availability of prior research knowledge in the field also assisted the company in being informed in decisions and avoiding costly mistakes.
On weaknesses: One of the weaknesses of the company is uncertainty. Since the company is new, some things could be improved regarding prospects. Additionally, a lack of knowledge in integrating carbon fiber into production can have some challenges. Hence, the company needs to hire experts and train its field employees to ensure an efficient and seamless manufacturing process.
On opportunities: An increase in fuel shortages has resulted in an increase in the number of people using bicycles for transportation. This company opportunity targets this market segment. Moreover, increased awareness of using eco-friendly modes of transportation and the company’s emphasis on manufacturing bicycles made of carbon fiber correspond with this trend. Again, Technological advancement also offers opportunities for the company to improve its products and services.
Under threats: The main threats the company faces are competition from established players in the market. Since the industry is highly competitive, the company may experience risks of price competition. Another threat to the company’s market share is new entrants in the market. However, the industry’s dynamic nature also requires constant updates for the company to remain in touch. Thus, the company must keep updated with the latest technologies and trends to remain competitive.
Market Survey and Analysis
In order to succeed in the industry, a market survey and analysis for The Hawk Bicycle Manufacturer should be indicated. It is also essential to process carbon fiber bikes in large volumes for the market (Thrall, 2020). Production of large quantities of bikes can enable the company to meet the market’s high demand and generate weighty revenue. This shows that custom products can be an advantage for the company to market itself internationally.
Again, the bike store can also display many bikes to cater to their customers’ diverse needs. Nevertheless, one copy of each model for sale and a smaller outlet can be less crowded in the market hence opening space that can be utilized to produce personalized customers attention (Tan, 2022). The strategy can assist in attracting and retaining customers. Moreover, the survey market also reveals that the demand for bikes increased due to fuel shortages and increased awareness of eco-friendly transport modes. This company’s opportunity taps into this market by producing high-quality carbon fiber bikes that meet the needs of consumers.
Target Segments
The company identified 12 potential test markets across three regions: Europe and North America, Latin America and the Middle East and Africa, and Asia and the Pacific (Putra & Masdupi, 2019). These markets present a unique opportunity with potential demand, a different mix of customers, and cultural differences.
Under this, the market sections in the company are targeting sections like youth, work segment, recreational, and mountain section. Such sections are established based on specific product needs, interests, and customer demographics (Putra & Masdupi, 2019). For instance, the youth section is interested in lower-priced bikes with different trend designs, and the work section places their interest in practically commuting bicycles.
The company considers economic differences between the potential impact and each region on pricing strategies. Company sales tend to peak when the performance specifications are high price is low. Thus the company should be aware of the pricing trends in each region and adjust its pricing respectively.
In order to meet each of the target sections, the company tailored its marketing strategies to suit each section’s preferences and interests in the market. For instance, the youth section’s marketing efforts emphasize marketing influencers and social media. However, marketing efforts for the work section also emphasize business networking events and partnerships (Swenson, 2019).
Brand Designs
The company intends to design the following type of bicycle brand new designs (Putra & Masdupi, 2019).
Strategy Adjustments
The company proposed two essential strategy adjustments: market feasibility and environmental feasibility. The market feasibility adjustment emphasizes producing cost-effective automotive solutions to focus on the economic apprehensions of customers and workers effectively. They adopted a cheaper penetration price strategy than rival motorcycles to inspire customers to purchase their bikes. However, affordability is often a top priority for customers in any open market, especially in an economic downturn (Swenson, 2019). Thus, the company can increase sales and attract customers by offering a more affordable option.
Moreover, the environmental feasibility adjustment emphasizes the eco-friendliness of the manufacturing process in the market. Since bikes are produced by an additive manufacturing process using carbon fiber can harm the ecology because no toxic chemicals are released into the environment (Swenson, 2019). This process has a great selling point for customers increasingly concerned about their purchases’ influence.
New Division
A new division in the company establishment plays an important decision that requires severe execution and planning in the market. To succeed, factors like marketing plan, product line, and the chosen international markets must be considered (Putra & Masdupi, 2019). This new division will begin with a mass-market design for its first product line, design, and materials received by customers for success in the market.
To enter the international markets, a new product line should undergo testing in a few international markets to weigh its acceptance and marketability by customers. The management plays a critical role in evaluating the most appropriate product line and developing a marketing plan (Putra & Masdupi, 2019). Again, it is also essential to check the marketing strategy through field testing for the importance of the company.
Investments
An investment is required to begin a new company division, and the corporate headquarters provide it. Firstly, the seed capital will be utilized for designing new brands, opening new sales outlets, and conducting R&D to improve brand features. There are also other expenses related to the establishment of the new division. Once the new division begins operating, profit generation is the company’s primary expectation (Putra & Masdupi, 2019). Moreover, to ensure a sustainable growth rate, enough profit earnings are expected from the new division within two years to provide initial investment made by the corporate headquarters. However, the investments are established by the corporate headquarters efficiently and effectively.
Assessing performance and redefining strategy
Here, a balanced scorecard is used in determining the performance of the marketing division, which is a vital step for the company in assessing its performance and redefining its strategy. This performance management tool permits business operations to align their strategies with the mission and vision of the company. Moreover, by measuring financial performance, marketing effectiveness, market performance, and wealth creation, the company can have a holistic view of its performance (Neyestani, 2017). This enables the company to focus on short-term financial goals and long-term growth. The scorecard can also be used to track the performance of the marketing division quarterly.
Marketing tactics and capitalization on prior investments
This is an essential tool for businesses to effectively promote their brand, increase sales and reach their target audience. Nonetheless, businesses can capitalize on investments and create compelling marketing tactics by understanding various platforms and terms. On analyzing past campaigns and measuring their success, businesses identified what worked and what did not. Additionally, by targeting the right audience and the appropriate channels, businesses optimize their marketing tactics and reach potential customers (Neyestani, 2017). However, digital marketing has the potential to transform a small startup into an established brand. In order to create a robust online presence, businesses can attract more customers, increase revenue and build brand awareness.
Conclusion
Conclusively, the company report shows various aspects of the company’s operations, including target sections, marketing tactics, investments, and performance assessment. Lastly, the report also focuses on the importance of measuring business performance based on financial performance, marketing effectiveness, market performance, and investments in the company. By implementing these recommendations, the company can build a strong brand standing that competes effectively and efficiently in the market internationally.
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