Group Assignment:

Strategic Company Planning

Alpha Bikes

Student Name: María Paula Flores Luzuriaga

Student Number: 0909323

Student Name: Valerie Gruebele

Student Number: 0920348

Student Name: Antonio Montero Ycaza

Student Number: 0918247

1. Mission Statement
Our mission is to offer every customer a suitable and high-quality bike and shopping

experience at an affordable price to meet their individual needs.

2. Situation Analysis: SWOT

Strengths

● Every year new bikes can be launched and existing ones improved and developed. So

the demand of different target groups can be met.

● The market share of Apha Bikes is the highest in all three segments: 45.3% in the

youth segment, 33.0% in the mountain segment and 36.0% in the road segment.

● The firm has a large Capacity (SCU) of 47,200.

● The firm has a high quality index (0.70) in their product line.

● The firm has a low idle time (3%) compared to the competitors (7%).

● Efficiency Improvement has increased 65% compared to last year (2022).

● Quality Improvement has increased 92% over the last year (2022).

● The firm has the highest market capitalization 64,623,196.

● The firm had a change in SHV from last year of 105.5%.

● Lost sales of 1,117 units compared to last year 49,044 units.

● Large number of reports show past results as well as market research and competitive

benchmarks. Because of that the company has extensive knowledge about the current

status.

Weaknesses

● Market research has shown that consumers are dissatisfied with the existing products

in the maturing Mountain segment, the mid-range Mountain Bike.

● Large amount of wastage (23%) compared to last year (19%).

● A large closing inventory of 1,486 units leads to a high cost $18,575.

Opportunities

● There is high demand for products in the other empty segments (Youth Bike segment

and high cost Road Bike segment).

● Other companies have not met the demand of their respective markets.

Threats

● All three segments are available to the local manufacturers meaning that the

competitors may release a new product to the vacant segments.

● Governmental regulations let to a limited range of products at the beginning.

● I is not possible to predict customer reactions when a new bike is introduced. This

makes the launch of new bikes very risky because a huge investment in advertising

and branding is made, but a return on investment cannot be guaranteed.

3. and 4. Multiplayer Firm Objectives and Strategies

Objectives Strategies

Reduce our wastage by 8% in the

1. To decrease wastage, we need to spend or
next 3 years.
economically increase our expenditure on

efficiency.

Increase sales by 20% in the next

1. Increase the budget that goes towards advertising
3 years.
and brand awareness.

2. Invest more money in public relations depending

on customers preferences.
 3. Keep competitive advantage in price.

Increase gross margin to

1. Increase the price of the products by a small
minimum 70% from its present
percentage.
59% in the next 3 years.
2. Offer retailers the smallest possible margin to still

stay in business with a high number of retailers.

Reduce closing inventory to a

1. Calculate the expected demand for next year and
maximum of 300 bikes across all
the stock of units that we have in inventory.
segments in the next 3 years.
2. Take advantage of the firm’s capacity and try to

sell every bike.

Maintain our position as leaders

in all market segments with the 1. Concentrate on expectations of target group and

highest market share. focus on prefered advertising channel, retailer and

product specs.

Reach a Shareholder Value of

over $100 in the next 2 years. 1. Minimize debts and pay dividends to

shareholders.

2. Offer customers the best fitting bike in the

market.