Essay about Apple

4402 Words Jul 10th, 2014 18 Pages
I. EXECUTIVE SUMMARY
FreeRiders, Inc. is one of the leading specialty mountain bike design and manufacturing firms in the world, and caters to professional cyclists, primarily in the mountain bike/extreme sport sub-category. Despite its reputation as a leader in competitive cycling, FreeRiders receives the majority of its revenue through high-end mountain bike sales. Each FreeRiders bicycle is hand-made in the US in FreeRiders’ machine shop in Everett, Massachusetts, consistent with the FreeRiders mission to “produce high-quality custom, one of a kind bicycles in the USA… designed and manufactured by and for the professional road and extreme sport rider.” As a small company with fewer than twenty full-time employees and a host of
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A. The Marketing Environment

1. Competitive Forces. It is estimated that over 2000 companies worldwide manufacture bicycles and cycling related products for retail. Within that group, there are approximately 100 different brands available at retail at any given time. While the majority of the bicycles sold at retail are for either transportation or recreation, only about six percent are sold in the pro/luxury category.

2. Economic Forces. While rising fuel costs may suggest a rise in bicycle expenditures, on the whole, consumers looking to save on transportation costs generally purchase ‘comfort’ bicycles at an average retail price of $350. Currently, FreeRiders’ models range from $1,500 up to $10,000. Other economic forces include a shift in the high-end bicycle manufacturing industry toward outsourcing and overseas production, which thereby significantly decreases manufacturing costs even with lower price tags at retail.

3. Political Forces. As trade regulations are lifted in developing economies, nations such as China are providing lucrative incentives to US and European manufacturing firms. FreeRiders’ firm commitment to handcrafted, locally produced bikes places them at a competitive disadvantage with regard to manufacturing overseas. Conversely, organizations such as Bikes Belong (www.bikesbelong.org), BikesPAC, a political action committee, and the American Bikes

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