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Schwinn bicycles - Case Study Example

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The present study analyzes the case of Schwinn Bicycles with regards to its turnaround strategy. The findings of this research will provide insight of the reasons for the decline of the company and the positioning issues of the brand and the product. …
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Schwinn bicycles
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"Schwinn bicycles"

Download file to see previous pages This research aims to evaluate and present the main strength of the company that lies in its large number of association with the industry segment. The company’s association with the industry dates back to more than a hundred years. Schwinn bicycles was once the market leader in the industry and has a an easy brand recall by the customers. The expertise of manufacturing and other operational aspects also constitute some of the other strngths of the company. A team of deidcated huamn resource base as well as a number of manufacturing units also serve as potential strngths of the company. The major areas of weakness of the company lies in its considerbly degrading market share and its outdated product line that finds very few takers in the market. In addition to this the issue lies with the poor positioning of the company as the customers find the brand and its products outdated and old fashioned that does not meet the expectations of the prospective sutomer segments. The internal organizational aspects like HR policy and the aspect of sourcing some of the products from Asian nations has also put questions over the aulity aspect of the company’s products. One of the possible alternatives before Schwinn bicycles is a repositioning strategy. Repositioning involves changing the perception about a product or a brand in the minds of the target market audience. The repositioning strategy would involve focusing on innovation and needs of the customers and successfully communicating this change so as to change the perception of the brand and its product in the minds of the target market audience. ...
In addition to this scope also exists for the company in unexplored and new markets wherte the company can leverage its association with the industry and its accrued experince to gain customer confidence that can reap benefits for the company. Opportunities also exists for the company in innovating its exiting product line that can help it to make its cash registers ringing and help maintain profitability and sustainability in the long run. Threats Schwinn Bicycles faces threats from its competitors in the market that of late have taken an edge over it in the market by virtue of greater innovation and newer product lines. The company also faces threats from the negative positioning and a poor image among the customers with the brand and its products. The constantly dwinndling market shares along with large number of debt obligations and the extensive levels of competition in the market serves as sources of considerable threats that can generate considerble issues for the organization. Analysis of Alternatives In the light of the issues surrounding the company, it has become imperative for the company to undertake strategic changes in its functioning that can help generate competitive advantage for the organization. Some of the strategic alternatives that can be considered by the company are stated below: One of the possible alternatives before Schwinn bicycles is a repositioning strategy. Repositioning involves changing the perception about a product or a brand in the minds of the target market audience. The repositioning strategy would involve focusing on innovation and needs of the customers and successfully communicating this change so as to change the perception of the brand and its product in the ...Download file to see next pagesRead More
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