Cannondale essays

Cannondale essays 2-.Indenty key issues from the Broad Environment and discuss how they might impact this industry in the future We can differentiate the following key points: 1. Federal Legislation. During the 1990s the US government enacted legislation that requires communities to include cycling in local transit infrastructure plan (for example Clean Air Act, set standards for air quality). So, people use more the cycle than before, and they spend more money in it. (more money more profit). 2. The appeal of mountain biking. The number of mountain bikers in US grew from 200.000 in 1982 to 85 million in 1997. So the sales has increased considerably; three factors contributed to the popularity of mountain bikes: They were more comfortable to ride than typical touring or racing models. The bikes greatly increased the terrain available to bicycles. More adults were turning toward outdoor activities in their leisure time. 3. Technological Innovation. Cannondale was the first firm in selling mountain bikes. They have based his strategy in technological innovation. They were the first to offer affordable large-diameter aluminum-tube bicycles in the early 1980s. This is an important competitive advantage, because they can sell the products to high prices (new differentiated product can be sold to high prices). Nowadays all the bikes manufacturers, including companies that manufactured inexpensive bicycles, it is using aluminum; so they have to use new raw material like Carbon or Titanium to innovate. The same has happens with full-suspension system. 4. Mature industry. The growing of cycling industry has decrease after 1995. The revenues had been growing exponentially during the 1980s, so Cannondale the leader of the high-performance mountain bike segment had grown greatly. Nowadays, the market is growing but more slowly than before. We can say that the market is saturated, so to keep the growing levels it will b...