ABC Bike Retailer Analysis Assignment Sample

Signature Assignment

Contents

Introduction.

Leadership style.

Importance of ethics in business.

SWOT analysis.

Strengths.

Weakness.

Opportunity.

Marketing Mix.

Five-year strategic plan.

Sales forecast

Conclusion.

Reference.

Introduction to ABC Bike Retailer Analysis

ABC bike retailer is an organization that sells different kinds of e-bikes as per the requirement of the customers some of these include mountain bikes, beach bikes and so on. The mission of the organization is to provide e-bikes to the people at affordable range while working towards sustainable development and environment. The company apart from the e-bikes are also developing apparels like a hat and some components and accessories which are required by the people when using these e-bikes (Cherry, Yang, Jones & He, 2016). The vision statement of the company is to meet all the desires of life and provide them with opportunities for a healthy lifestyle. Along with it, it also has the vision to maintain business sustainably. The range of bikes that we have launched for the customers has an impressive design, elegant performance. It has the power to redefine the customer's journey. As tradition bikes, electric bikes requite TLC greasing and tuning even when the customer is not using it.

Leadership Style

Since I am trying to transform bikes industry thus I think I possess the quality of being a transformational leader in comparison to any other leadership style. I will try to motivate my employees so that they start thinking about innovation and begin their work in the field. I will guide employees as well as customers to make them understand the benefits of having an electric bike instead of developing and having a fuel one (Mansor, Mun, Farhana & Tarmizi, 2017). I understand the fact that it is a difficult task for the employees to create an e-bike which gives a good performance in comparison to fuels ones. Therefore, I will help each of the employees so that they can give their best in developing and designing the best electric bikes. If required I am also planning to conduct a show in which I will talk about the e-bikes which are prepared by my people to the world. It would help increase the sale of the product as well as also enhance the lost enthusiasm in the employees. When people will see the advantages of electric bike they will start purchasing e-bike instead of fuels. Apart from this, to conduct the business successfully I will also conduct some sessions or seminars which will help the employees to enhance their knowledge and skills in the direction. There will be times when employees will get frustrated and fail to develop more efficient electric bike in such cases I will give them the example of some role models who have not only transformed peoples thinking but also rough revolutionize change in the world. This leadership style will help in successfully conducting business

Importance of Ethics in Business

Ethics play an important role in business. The CEO and other business executives try to overlook the ethical practices and focus more on increasing productivity so that they can earn huge revenues. However, the company has to face the consequences of unethical practices in huge sums of money market (Sison, Beabout & Ferrero, 2017). Let’s take an example of Ford who is known for developing family cars for its consumers. Despite being a popular brand the company had to face the consequences. The company lost its brand image just because of a single decision. The company announced for launching a new car in the market on a particular date but during the time of the execution, it was identified that there is a fault in the design and the chances of people meeting with the accident are high as the door is getting opened when the car comes in speed. The company conducted a meeting for taking the right decision but most of them stated that if the company does not launch the product it will lose its image and the company cannot increase the price of the product at the last moment. Ford launched the product in the market but it lost the trust of its customers in safeguarding them from all sorts of risk. People died in the road accident and on investigating it was found that Ford did not do anything for the safety of its consumers. It had to pay a lot of money to the concerned authority for the same. This indicates having ethical behaviour is important. I will make sure that the company gives correct information to the consumers. I will not play with the lives of the people just for the sake of money and reputation which will even get decrease when unethical practice information released in the market (Sison, Beabout & Ferrero, 2017). I will appoint some people just to check whether the company is practising ethical behaviour or not. This will help to maintain ethical behaviours with partners as well as all the stakeholders of the e-bike retailer. 

Marketing Management

There are different types of marketing management. Each one of them is given below in detail.

SWOT Analysis

It is an important marketing tool as it helps in identifying strengths, weakness, opportunity and threat of the organization. 

Strengths

• Electric bikes are eco-friendly as it does not release harmful methane gases in the environment (Gürel & Tat, 2017).
• The best thing about electric bikes is that it gives more value in the long run.

Weakness

• Since it is an electric bike therefore it can be stated that the charging time of the bike is high.
• An electric vehicle or electric bike is a new concept and this is why the company will have to create charging stations which are not established by the company currently.
• The reason behind people refusing to purchase an electric vehicle is expensive batteries.

Opportunity

• There is an increase in the cost of fossil fuels which is an advantage for the company.
• There is no congestion charge on electric bikes (Gürel & Tat, 2017).

Threat

• The competition in the market is high, companies to sustain in the market are using hybrid models instead of focusing on one form of the model.
• The rising cost of electricity can make it difficult for people to purchase electric bikes.

Ansoff’s Matrix

It is a tool which helps the executives and related authority to strategically plan for the future.

• Market penetration –This strategy helps to sell the electric bikes in the market.
• Product development – The company needs to get involved in the new product.
• Market development – The company needs to find out new areas to enter the market (Loredana, 2017).
• Diversification – The company initially started as electric bike manufacturer it slowly diversified its project.

Marketing Mix

Four things are emphasized in the marketing mix. These include:

• Product – The company’s major product is its electric vehicles.
• Price – The price of the vehicle must be decided such that people afford to buy it like 2999 yuan and so on.
• Place – The company will provide the product at the home of the customer (IšoraitÄ—, 2016).
• Promotion – It will use the best possible strategy to promote business in the new or existing environment.

Five-Year Strategic Plan

The electric bike retailer has created some goals which the company is going to achieve in the next five years.

• The company is aiming to achieve the profitability of more than 15 per cent.

To achieve this goal, the company needs to make use of the budget carefully. It must invest in all the necessary things in the company like cost, wage and rent effectively. Besides, the company will also require talented mechanics who are proficient in repair work and providing good customer service (Plazier, Weitkamp & Berg, 2018). The company also need to motivate all of its staff members so that they start working on the sales target that was provided by the company. The best practice would be to give them incentives for achieving their sales target.

• The second and most important goal of the company is to provide good quality product and exceptional service to the customers.

The company if wants to achieve this goal have to ensure that the product that they are selling in the market is of good quality. There are two types of strategies which can help a company to generate sales revenue this include retail and service. The company would sale electric bikes of different types like downhill, mountains and beaches. All these products must be developed keeping in mind the high quality. Moreover, the company also sell other items such as apparels, mechanic items, water bottles and so on (Milligan, 2017). The organization must maintain all the items as per the demand of the customers. Besides, the company must also inform all of its customers about the wide range of components that it manufactures to fix or upgrade their bikes for better functionality. The certified mechanics of the company must inform the customers about accessories and installations and repair that they need to take within a specific time.

• The company will also need to focus on establishing a new customer relationship.

The electric bike must try to establish a strong relationship with the customers because of they will be satisfied with the product and service, their trust will start mouth publicity which is very important for a startup like an electric bike. This will help the organization to get more and more customers. Other than this, the company can also arrange regular group rides it will help in enhancing more interaction with the customer (Milligan, 2017). These small relationships will increase customer reach and will also build a positive brand image of the company. The company must also try to create a relationship with suppliers as well as experts for ensuring long term benefit in the business. 

• The company must pitch out that electric bikes are eco-friendly.

Consumers these days are looking for things which are eco-friendly because they have changed their perception. Consumers are more concerned about the environment and it would be best if the company make its consumers understand that electric bikes on daily basis can help reduce the pollution up to certain level and it is eco-friendly (Bright, Ogandaga & Arora, 2020). Moreover, it will also stop the exploitation of non-renewable sources of energy. If the company can put in the minds of the consumer that they are exploiting the valuable resources they will automatically start purchasing electric vehicles. 

• The company needs to work on the battery life.

At the initial level, the battery life of the vehicle would not be up to expectations. The company to increase needs to work on research and investment so that the duration of the battery life increases. Everyone cannot afford expensive batteries thus the company must find some alternative method by which it can reduce the cost of batteries that are used in electric–bikes to make them affordable and sustainable (Raiborn, Payne & Joyner 2013).

Sales Forecast

It is identified in the analysis done to understand the sales forecast that by the end of 2026 electric bike market will reach 46.04 billion. It is found that the growth of the electric bike is because of its pedal. The company needs to invest more in this research and development unit to create a long battery life. It is found that the growth in the sale of the electric bike will increase because it is of low maintenance, lightweight and high battery capacity. Since the market competition is very high in this sector thus it is advised to capture only one per cent of the market (Sachs, Burandt, Mandelj & Mutter, 2016). After every year, the company must try to expand the market by 15 per cent. The market sales of electric bike would be 3.4 million. It is found that in India and China people are eagerly waiting to get an electric bike just because of the disposal income. The entire forecast was done keeping in mind 2021 and 2022 as 2020 is a pandemic year.

Conclusion on ABC Bike Retailer Analysis

It can be concluded from the findings that the electric bike is an innovative idea and has a huge potential in the market because it is eco-friendly and the demand for it in the market is high. The company if work on strategies can even compete with already established companies like Tesla. The five-year strategic plan will help the company to focus on the goals to accomplish them. Sales forecast will guide the company to start manufacturing of electric bike based on them.

Reference for ABC Bike Retailer Analysis

Bright, D. D., Ogandaga, E. L. A. D., & Arora, A. S. (2020). Seeing Is Believing: The Disruptive Effect of Sustainable and Functional Product Design in Electric Bikes for Emerging Economies. In Sustainable Innovation, 25-32.

Cherry, C. R., Yang, H., Jones, L. R., & He, M. (2016). Dynamics of electric bike ownership and use in Kunming, China. Transport Policy, 45, 127-135.

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).

IšoraitÄ—, M. (2016). Marketing mix theoretical aspects. International Journal of Research Granthaalayah, 4(6), 25-37.

Loredana, E. M. (2017). The use of Ansoff Matrix in the Field of Business. Annals-Economy Series, 2, 141-149.

Mansor, Z. D., Mun, C. P., Farhana, B. N., & Tarmizi, W. A. N. (2017). Influence of transformation leadership style on employee engagement among Generation Y. International Journal of Economics and Management Engineering, 11(1), 161-165.

Milligan, R. (2017). Drive cycles for battery electric vehicles and their fleet management. In Electric Vehicles: Prospects and Challenges (pp. 489-555). Elsevier.

Plazier, P. A., Weitkamp, G., & Berg, A. E. (2018). Exploring the adoption of e-bikes by different user groups. Frontiers in Built Environment, 4, 47.

Raiborn, C., Payne, D., & Joyner, B. (2013). Environmentally-friendly business strategies: BP–a case of rhetoric or reality? Journal of Business and Management, 19(2), 67-89.

Sachs, C., Burandt, S., Mandelj, S., & Mutter, R. (2016). Assessing the market of light electric vehicles as a potential application for electric in-wheel drives. In 2016 6th International Electric Drives Production Conference (EDPC) (pp. 280-285). IEEE.

Sison, A. J. G., Beabout, G. R., & Ferrero, I. (Eds.). (2017). Handbook of Virtue Ethics in Business and Management. New York: Springer.

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