Business Case Studies & Business Publications

The Cycling Industry

Farris, Paul W., H...

Technical Note

The Cycling Industry

Farris, Paul W.; Hoeller, Daniel

M-0744 | Published April 20, 2009 Technical Note

Collection: Darden School of Business

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This note explores brand evolution in a growing industry. Four high-end U.S. bicycle frame manufacturers (Trek, Seven, Moots, and C?rvolo) compete for brand status in the $2,000-and-up mountain bike market. Challenged by a coming carbon shortage and famed cyclist Lance Armstrong's retirement, the continued domination of Asian imports, and the reduction in the number of local bike shops, this industry faces significant strategy challenges.

Identify and understand branding strategies among competing manufacturers; challenges for high-end sports products; the effect of fierce competition from Asian imports; and the appeal of various market segments. Propose and justify strategy options.