In today’s wealthy society, the role of bicycle plays in our life has been changed from simply being a vehicle tool to being sports-and-leisure- goods which represents a new life style. For bicycle manufacturers, it’s an important and urgent issue to make not only standardized products but characteristic, functional and customized ones to meet people’s diversified and specific needs and to proactively react to the changing environment.
With the case study of G Company (“the Company”), the research sought to discuss the Company’s internal conditions and competitive advantages as well as the actions taken to cope with the changing environment. We can see how the Company achieves its vision and mission effectively by strengthening the strength and improving its weakness. The study aims to develop the business strategy for the Company by well-understanding the industrial trend and identifying the key factors through the theoretical structure and model. By means of the discussing of the formulation of business strategy, the research expects to provide a model for the bicycle manufacturers in Taiwan.
The case study adopts descriptive research methodology by reviewing related domestic and overseas literatures, collecting primary and secondary information and analyzing the Company based on a theoretical framework. It concludes 3 key factors as follows: the key factors of the internal environment, the industrial environment and the macro-environment are the integration of production and marketing, branding and innovation, respectively. With the analysis of the aforementioned three key factors in three dimensions, the research summarizes that “Integration and Innovation” is the key strategic factor for the Company.
Based on the key factor of “Integration and Innovation”, the research concludes 3 different strategies for the Company：1. Integration strategy：Taking the advantage of the integration of products and sales, the Company should deepen the strength of production and marketing by developing the key factor of internal environment “Production and Marketing”. 2. Differentiation strategy：To excel the rest of the bicycle manufacturers, the Company should take efforts on differentiating in physical products by lunching more specific and unique functions, as well as in tailor-made services. 3. Product extension and market development strategy：Facing the threats from the substitutes in the fitness center, the Company should take the product extension strategy of proactively launching a series of cycling products for fitness centers. Moreover, it may adopt the market development strategy or diversification strategy to take the chance of turning industrial threat into opportunity by entering into the new market of fitness centers.