Essay about Schwinn Bicycles - Swot

714 Words May 25th, 2008 3 Pages
I – BACKGROUND

• The Environment o SOCIAL
Schwinn has a very diverse customer base, from parents buying their first bicycle for their child, college students, to bicycles for professional cyclists. Schwinn products reach a larger range of customers.

 ECONOMY
Some of the target market of Schwinn is price conscious because they have low to middle income. Therefore, any decline in the economy that can impact those customers will definitely impact the company as well.

 POLITICAL-LEGAL
No aspects of the political or legal environment are expected to influence our decision.

• The Industry o Competitive Situation

Schwinn has lost considerable market share due to its failure to capitalize on the increasing popularity of
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Much of their marketing in this segment is done through sponsorship of competitive teams that use their equipment exclusively and therefore benefit from a more youthful consumer base. Schwinn’s problems arise from a lack of early movement into mountain biking as it became popular, losing large market shares to firms such as Trek, Cannondale, and Specialized. This lack of vision has since deteriorated Schwinn’s once stellar brand-image leaving them with a lot of ‘catch-up’ to do in the market. Because of their late movement into the market, many feel the quality of Schwinn’s mountain bike models is lacking and not worth the premium price.

 Product Life Cycle – the product is in the maturity phase. o Sales volume has reached its peak. o Brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered.

• The Organization

Schwinn is an American icon, they are on the forefront of advances in fitness equipment, and have been an indispensable player in revolutionizing bicycling around the world. Schwinn brand essence and positioning is embodied in quality, value and family recreation.

SWOT Analysis
Strengths:
• Schwinn is known for having high quality products.
• Schwinn has a wide variety of products, which will reach a larger range of customers.
• Schwinn’s products are offered at very competitive prices.