Shimano and the High-End Road Bike Industry Description
Professional cycling teams use road bikes made up of several parts or components: frames, forks, wheels and tires, saddles, seat posts, handlebars, and pedals. Pedals hold a cyclist's special shoes in place so they can "clip in" for greater control and power, and several companies make different models of pedals. Lance Armstrong, seven-time winner of the Tour de France, uses Shimano pedals. Shimano, founded and based in Sakai City, Japan, makes many of the key components of a bike. The fact that each of the different components to a high-end road bike are manufactured by different companies makes for a complicated bike industry supply chain. By 2006, Shimano had grown from a family-based business (founded by Shozoburo Shimano in 1920) that focused on freewheels, to a $1.6 billion global company (with net income of $186 million) that not only manufactured mid- to high-end bike components (and low-end components as well), but also made fishing tackle. Eighty percent of the company's sales were from high-end bike components and 20 % from mid-range bicycle components. Seventy-five percent of the company's earnings could be attributed to components. Shimano led the bike component industry, owning over 80 % of the high-end component market. But growth did not come overnight. Shimano's leaders reflected on the company and its growth trajectory. They were particularly proud of Shimano's market domination, largely attributable to the company's commitment to research and technology, as well as to the amount of value the company had been able to leverage from the industry's supply chain. As new technologies and new companies began to enter the market, and the longer term sales trend of a mature road bike industry remained relatively flat--despite the "Armstrong effect"--Shimano's leaders and their team wondered how to continue their growth in the mid- to high-end components market and achieve growth on an even greater global scale.
100% money back guarantee if the quality doesn't match the promise
100% Plagiarism Free
If the work we produce contain plagiarism then we payback 1000 USD
Paypal Secure
All your payments are secure with Paypal security.
300 Words per Page
We provide 300 words per page unlike competitors' 250 or 275
Freebies
Free Title Page, Citation Page, References, Exhibits, Revision, Charts
Case study solutions are career defining. Order your custom solution now.
Case Analysis of Shimano and the High-End Road Bike Industry
Shimano and the High-End Road Bike Industry is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Shimano and the High-End Road Bike Industry is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Shimano and the High-End Road Bike Industry case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Shimano and the High-End Road Bike Industry will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Shimano and the High-End Road Bike Industry
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Shimano and the High-End Road Bike Industry, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Shimano and the High-End Road Bike Industry case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Strategy & Execution Solutions
In the Texas Business School, Shimano and the High-End Road Bike Industry case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Shimano and the High-End Road Bike Industry
Step 1 – Problem Identification of Shimano and the High-End Road Bike Industry - Harvard Business School Case Study
The first step to solve HBR Shimano and the High-End Road Bike Industry case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Bike Shimano is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Bike Shimano, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Shimano and the High-End Road Bike Industry.
The external environment analysis of Shimano and the High-End Road Bike Industry will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Shimano and the High-End Road Bike Industry case study. PESTEL analysis of " Shimano and the High-End Road Bike Industry" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Shimano and the High-End Road Bike Industry macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Shimano and the High-End Road Bike Industry
To do comprehensive PESTEL analysis of case study – Shimano and the High-End Road Bike Industry , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Shimano and the High-End Road Bike Industry
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Shimano and the High-End Road Bike Industry
Government policies have significant impact on the business environment of any country. The firm in “ Shimano and the High-End Road Bike Industry ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Bike Shimano is operating, firms are required to store customer data within the premises of the country. Bike Shimano needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Shimano and the High-End Road Bike Industry has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Bike Shimano in case study Shimano and the High-End Road Bike Industry" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Bike Shimano in case study “ Shimano and the High-End Road Bike Industry ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Bike Shimano in case study “ Shimano and the High-End Road Bike Industry ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Shimano and the High-End Road Bike Industry
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Shimano and the High-End Road Bike Industry ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Bike Shimano can compete against other competitors.
Government Scheme & Subsidies Impact on Shimano and the High-End Road Bike Industry
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Shimano and the High-End Road Bike Industry case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Shimano and the High-End Road Bike Industry
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Bike Shimano needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Shimano and the High-End Road Bike Industry
Social Factors that Impact Shimano and the High-End Road Bike Industry
Technological Factors that Impact Shimano and the High-End Road Bike Industry
Environmental Factors that Impact Shimano and the High-End Road Bike Industry
Legal Factors that Impact Shimano and the High-End Road Bike Industry
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Shimano and the High-End Road Bike Industry case study. PESTEL analysis of " Shimano and the High-End Road Bike Industry" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
Amanda is strategy expert at Texas Business School. She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. You can hire Texas Business School professinoals to revolutionize your strategy & business.
Hurley Dry-Fit Chino Short. Men's chino short. Outseam Length: 19 Dri-FIT Technology helps keep you dry and comfortable. Made with sweat-wicking fabric. Fitted waist with belt loops. Button waist with zip fly provides a classic look and feel .
