Oasis Bicycles Global Business Strategy

Oasis Bicycles is a Taiwan based company which designs and sells a variety of bicycles for road as well as mountains. Due to its presence in four continents, it is considered as a good example of a global company. It is considered as one of the largest bicycle manufacturing company with sales of around US $800 million. About 93 percent of which comes from outside Taiwan.

According to its CEO, “Because of the small market for bicycles in Taiwan, we don’t have any other choice– we have to be a global company. The biggest market for us so far has been Europe, which accounts for just half of our sales. We started manufacturing in the Netherlands because of the attractive market in Europe and we expect to sell more than 4 million bikes annually by the end of 2015. Initially Oasis started by making just 100,000 bikes a year from our European factory, but we envisage this by climbing fourfold in the next 10 years. The main reason for transferring some production from the far-east to the Netherlands is to increase flexibility.

Fashions are changing very quickly and market trends must be followed very closely. In Netherlands wage costs are almost 60 per cent higher than in Taiwan, but the productivity will get better in Europe. Out of 2.5 million bikes which company makes every year, about 1 million are made at Taiwan plant. In the early 1990’s company introduced up to three new products every year which has grown to five to ten in today’s time.

Marketing Objectives:

French people are known for their lavish lifestyle and quality products. Company should launch something special in order to woo the local customers.

• Maintain high standards that Oasis bicycle is known for.

• Set new standards.

• Try to achieve equal o...

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...eway here.

Some small items cost more in handling and sales than they do to buy from supplier. These can be double and triple key stoned, because customers won’t buy them if they don’t have a minimum perceived value. With new technology arrives in bicycles, and if the supply is limited, almost any price can be demanded. This was the case in the mid 1990s when RockShox introduced suspension forks for mountain bikes. The bike nobs would pay whatever was asked just to get those forks. Of course, in this type of situation the price, both wholesale and retail, lowers.

Other accessories, such as step-in pedals, pannier racks, helmets or headlights are sometimes heavily marketed by the manufacturers. While this drives demand and brings people into the shop to get these items, the suggested manufacturer’s retail price may limit mark up.

(bplans.com 2013)