Bike maker prepares to step up a gear: Brompton wants to keep up with the competition without its folding bicycles losing their uniqueness.
Brompton Bicycle is a unique brand that is looking to increase sales to survive a competitive industry. However, there are challenges it must surmount in order to do so. The following is a SWOT analysis of the Brompton Bicycle case study.
SWOT table
Strengths
Use double shift to improve production and reduce wait time
Debt-free company
Established brand
Equipment investment
Cut cost by outsourcing
Recognition of need to expand
Income from parts sale
Weaknesses
Slow production methods
Six-month wait time
Not growing with the market
No current patents
Large manufacturing outlet
Not interested in relocating
No marketing strategy
Opportunities
Fast growing global market
Strong overseas sales
Threats
Fierce competition
Lack of skilled workers
Based on the case study, Brompton Bicycle has a number of strengths. It is an established unique brand. This gives it the advantage of being the first to manufacture and sell its brand in the UK and overseas and now has an established international customer base of 150,000 (Smith, 2008). Being debt-free is another strength. This financial posture has allowed the company to invest in specialized equipment to ensure it continues to produce a hight quality product. Another strength for Brompton Bicycle is recognizing its need to improve production by adding a second shift of workers. This move along with new equipment has dramatically increased production and reduced the six-month wait to three weeks (Smith, 2008). A further strength is its decision to reduce expenditure by outsourcing some aspects of manufacturing, this has allowed more time for the technical detail of manufacturing to ensure it maintains high quality. Another strength is in making the spare parts customers would need to fix their bikes. This provides additional income as well as...