Strategic Position and Risk Assessment: The Bicycle Rental Industry

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Industry Trends Bicycle tourism is a small industry on the national level with a high sales growth rate indicating its status as a growing industry (Bizminer…Tours, 2013). The bicycle rental industry is also a small, however this industry has reached maturity and while not declining it is not growing (Bizminer…Rentals, 2013). These trends show that bicycle tours have an advantage over bicycle rentals in terms of growth. Therefore, the main strategy will be to focus on the promotion of the bicycle tours, using the bicycle rentals as a way to use inventory during slow months of the operating cycle. Target Market The target market consists of tourist for tours and students for rentals. The target market is geographically bound to those visiting and living in Ashland, Oregon. These two segments differ from each other in age, income, and buying sensitivities. Tourists to Ashland tend to be older, richer, and less sensitive to price. Students are young and on tight budgets making them sensitive to price (New, 2007, p. 410). Competitive Environment For bicycle tours, there are a few direct competitors offering bicycle tours in Ashland. Therefore, major competitors of bicycle tours will be businesses competing for tourists’ time. In order to overcome this, the company will create partnerships with local businesses that would be competitors on time for the independent tours and advertising purposes. There is an abundance of bicycle rental businesses in the same geographic region. The strategy to combat this will be to offer extended time frames for rentals mainly appealing to students. There are not many other companies within Ashland that are offering weekly rentals and this way the business will not have to attempt to compete on pri... ... middle of paper ... ...tmcmd=organic|utmctr=%28not%20provided%29&__utmv=-&__utmk=10464757 New Strategist Publications, Inc. (Eds.). (2007). The American Marketplace: Demographics and Spending Patterns. Ithaca, New York: New Strategist Publications, Inc. Oregon Shakespeare Festival. (2014). Advertising Contract. Retrieved 2 May 2014 from http://osfashland.org/en/advertise-with-us.aspx Staples. (n.d.). Custom Printed Brochures. Retrieved 2 May 2014 from http://print.staples.com/custom-brochures.aspx?GP=5%2f2%2f2014+5%3a43%3a10+PM&GPS=3174022758&GNF=0#here Tanwar, Ritika. (Nov. - Dec. 2013). Porter’s Generic Competitive Strategies. IOSR Journal of Business and Management, Volume 15, Issue 1, pp 11-17. Retrieved 1 May 2014 from http://iosrjournals.org/iosr-jbm/papers/Vol15-issue1/B01511117.pdf?id=7380 Wix.com. (n.d.). Premium Plans. Retrieved 2 May 2014 from http://www.wix.com/upgrade/website

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