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MISSION – PROBLEM STATEMENT
Cannondale, a well-established U. ... Cannondale specializes in high-end bicycles that appeal to serious bikers. ... Cannondale’s proprietary manufacturing system had helped the company reduce the bike manufacturing time from 17 days to 3 days. Cannondale strives to be the best cycling company in the world. ...
Cannondale has enjoyed tremendous sales growth during the past ten years. ... As a result, Cannondale’s stock price has steadily declined from its peak of $27 in 1997 to far below $10 in 2000. In addition to its financial issues, Cannondale has recently experienced production problems in its Pennsylvania facility, which led to a delay in its new MX400 product launch. ... Cannondale’s core philosophy has driven the company’s strengths, which include innovation, vertical integration and high quality. Unfortunately, while vertical integration of its manufacturing has protected Cannondale from competitor copycats, it has also led to production issues, which is a current weakness for the company as it has no alternative manufacturing options available delaying production. ... One of Cannondale’s key competitors, Intrepid, acquired two high-end mountain bike manufacturers. Cannondale, however, surpassed its competition in the 1990s through its continual commitment to research and development, outstanding internal manufacturing and production capabilities and it strategic alliances with Volvo, Hilfiger, Saeco, SoBe, and other companies. ... Cannondale recognized these threats and through its innovation chose to diversify and enter the motorcycle industry. ...
Examining the competitive environment reveals that Cannondale possesses strong bargaining power over both its suppliers and its buyers. Since the industry has numerous suppliers and Cannondale has the option to substitute its base resources with other products, the suppliers have low bargaining power. The buyers have low to moderate bargaining power as there are no alternative products if they are looking for the unique technology features offered by Cannondale. ... The risk of substitutes is fairly low as Cannondale has patents on its products and follows a differential strategy. ...
COMPETITION
Cannondale experiences trivial competition from the large manufacturer like Huffy Corporation, Brunswick Corporation and Murray Ohio who market their products primarily through discount retailers and focus on a different target market. Additionally, Schwinn and Derby sell lower performance, affordable bicycles and hence do not pose a threat to Cannondale. Specialized, Intrepid, and Giant prove to be Cannondale’s strongest competitors as they focus on similar products, although Cannondale focuses on the high-end of all the features. ...
CORE COMPETENCE
Cannondale’s core competency is innovation, know-how manufacturing skills including its flexible manufacturing system and its focus on research and development, which has led it to become a fast-mover and a trendsetter in the cycling industry. ...
MARKET (MIX) STRATEGY
In 2000, Cannondale’s main objective was to establish the company as the leading high-performance bicycle brand in the specialty bicycle retail channel by focusing on innovation, performance, and quality. ... Cannondale hopes the MX400, their new innovative motorcycle that is currently a question mark, but has high industry demand initially due to its racing success will become their next star product – see Exhibit D: Cannondale Portfolio Model on the next facing page.
Approximate Word count = 2386
Approximate Pages = 9.5
(250 words per page double spaced)
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