165-edexcel-unit4a-brompton2010

165-edexcel-unit4a-brompton2010 - Strategic Analysis of...

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tutor2u Strategic Analysis of Brompton’s Business
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tutor2u Brompton’s Bicycle Models Brompton produces three models, M, P and S the X version of each model indicates a superlight specification made out of titanium M (and MX model) The all round, general purpose bike A best seller with room for luggage at the front UK RRP = £630 (and £1,050) Weight = 11.5kg (and 10.5kg) P (and PX model) The touring bike, with a rear rack for luggage UK RRP = £765 (and £1,185) Weight = 12.2kg (and 11.3kg) S (and SX model) For a more ‘sporty’ ride UKRRP = £630 (and £1,050) Weight = 10.7kg (and 9.8 kg)
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tutor2u The Market for Folding Bikes The market is growing fast at 20-25% pa by volume The clear market leader is Dahon, based in Los Angeles, who have a market share of about 66% Brompton is a small, niche player sales of about 20,000 bikes per annum one of only two volume producing manufacturers based in the UK, the other being Pashley There are healthy profits to be earned in this growing market which means that there is an incentive for other companies to move into this product space there are opportunities for competitors to challenge the Brompton USP at a much lower price as Will Butler-Adams, Managing Director, Brompton says: “There is always the risk that someone could turn up with a bike just as good and compact as ours but for two thirds of the price” Three key buying criteria in the market are ride quality/performance compactness/folding price
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tutor2u Routes to Market Evidence C and D refer to some of Brompton’s competitors in the folding bike market. There are three routes to market:
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165-edexcel-unit4a-brompton2010 - Strategic Analysis of...

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