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RXM1: Competitive Analysis

XXXX Bikes Competitive Analysis Student ID: XXX Date: June 24, 2021

A1. SWOT Analysis SWOT Diagram STRENGTHS

WEAKNESSES

Cumulative Financial Performance

Cumulative Investment in Future

OPPORTUNITIES

THREATS

Manufacturing productivity

Competition

A2.SWOT Justification Strengths- Cumulative Financial Performance XXXX Bikes has the overall highest cumulative total performance scores across all quarters as exhibited in our cumulative balanced scorecard. We came in at the highest number 16.638, the average rating was 6.636. There were other performance measures that influenced the overall score as we were also the frontrunners in the categories below: Cumulative Cumulative Cumulative Cumulative Cumulative Cumulative

Financial Performance: 29.715 Market Performance: 0.326 Marketing Effectiveness: 0.781 Human Resource Management: 0.771 Asset Management: 0.642 Manufacturing Productivity: 0.930

The business is in profitability and will entice investors who see the business record ad consistency. Weaknesses- Cumulative Investment in Future XXXX Bikes most obvious softness was not investing in our future until quarter 6, as replicated in our Cumulative Balance Scorecard, average rating was 5.555. Ours was 4.85. Not opening a store in all 4 locations is one reason for this unfavorable number. We opened 3 locations during the simulation. These locations may not begin to turn a large profit until the end of the next quarters in which they opened or possibly quarter 7. We also had a smaller number of average brands to offer than our competitors, offering only six bicycles.

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Competitive Analysis Template

Purpose behind this is we chose to restrict the number of brands all the way through quarter 5 and develop the products we had until they could stand on their own 2 wheels and become distinguishable prior to extending ourselves too thin by creating too many products and writing off more capital for those costs. Opportunities- Increase market share by opening more stores Manufacturing productivity would be the choice for opportunities in my business SWOT analysis. I limited my business to only three stores (Bangalore, New York City and Amsterdam) and six bikes, yet I had five, high quality 3D printers available and should have prevented stock outs in quarter 6. Regrettably, our manufacturing productivity was absent in comparison to our competitors. The business will re-brand two bikes and open a new store in Rio de Janeiro in quarter 7. Threats- Competition Competition is a big threat facing my business because there is a lot of businesses in the similar arena fighting for the bicycle market and production. Replication can damage the market share and in which this business is currently appreciating. Rivals are always looking for areas to obtain more control of the market and they can simply find what XXXX Bikes is doing perfectly to increase customers and replicate our efforts. Mountain does have a 36% market share monitored by 29% of a contender and take the lead that can easily be taken if no plans are in place by XXXX Bikes to keep up.

B1. Competitive Analysis Strategic Graphs

Topic 1 Market Share

Decision to invest greatly in advertising, market search, internet advertisements facilitated in product awareness and brand name. During the 5th quarter, I increased my company expenses significantly and it created the goal needed to start building a future profit for the

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business and made operating profit to be in the negative. Putting all these investment decisions together will help increase in market share, and still well above others. Outcomes and revenues were exactly what I was hoping for in quarter 6. The business, XXXX Bikes, reached a significant milestone, we generated more than 4 million in sales. The sky is the limit! Topic 2 Average Price

I purposefully kept my bicycle pricing just under my competitors by keeping manufacturing and overall costs of goods low. XXXX Bikes was able to keep the sales price remarkably steady despite increasing my sales force compensation, subsidies, and more sunk costs from bigger range manufacturing. Yet with the rise of average price, my business’s overall profit margin still rose. I used my money to increase my product awareness with advertising which kept my average price below my competitors during the 2nd, 3rd, 4th, 5th, 6th quarters. It seems based on the graph, that my rivals had to increase prices in order to retain profits margins with growing costs due to the industry average shifting in labor rates and benefits. Topic 3 Number of Units Sold

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Starting of my business, my number of units sold were flat in quarter 1 but increased in quarter 2 because I increased my product advertised, attained targeted audiences, and improved products than previously known and finally my prices were better than my competitors. This significantly increased demand and production from quarter 4 to 5. The reasons for this is that in quarter 5 we increased our advertising expenses from $1,303,096 to $1,969,271 and internet marketing expenses in quarter 6 to $4,500. With all this advertising it increased my demand and production and has turned by business into a lucrative company.

C. Recommendations SMART Goals Number one goal for XXXX Bikes is to increase Cumulative Investment in Future by 10% at the end of quarter 8. S. Investing in the future, the business will be creating a stage for future expansion and inviting outside investors to join in the development of the business. M. The business will see an upsurge in outside investments and improvement in production and rise in success. A. Attainable by concentrating further into future fiscal development and not site and outlet growth. Finance conservatively by placing assets in less risky investments with stable return and help investors develop their capital. R. Relevant to the company because the business is still developing and in demand of capital and additional investors to sign up. T. This is doable during the 7th, 8th and 9th quarters when the business is bringing in profits from the vast market share benefits and low costs.

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D. References

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