1. What are the strengths and weaknesses of Schwinn? What opportunities and threats face the company?
A. Strengths
a. Schwnn brand is known for quality with more than 100 years experience manufacturing bicycles.
b. Schwinn is under new management with vision and direction. This new management is not afraid to compete within the high end target market.
c. Schwinn can offer high end consumers the prestige of "Handmade in the USA."
d. Under new management Schwinn has streamlined their manufacturing process to greatly reduce cost.
B. Weaknesses
a. Schwinn brand is known for heavy duty low cost street bicycles. The kind ridden by the target consumers' parents.
b. Schwinn has made poor decisions regarding product offering and have ignore the mountain bike market.
c. Schwinn was entering into market segments where it had little or no experience.
d. Schwinn had ignored the technologies of carbon fiber and modern alloys. Consumers are aware that there are major technology hurtle that Schwinn must overcome.
C. Opportunities
a. The purchase of Yeti Cycles would increase Schwinn's share of the mountain bike market by marketing under an established name. Yeti Cycle would also bring much needed technical expertise and credibility to Schwinn.
b. Schwinn has product offerings priced to compete within different market segments.
c. Emerging international markets are not yet saturated. Schwinn has opportunities to compete within the growing international bicycle market. Trade and g ...