Dirt Bike U.S.A.
Florian Cela Jonathan Emerson Tom Hobson Nicholas Wong
Table of Contents
Preparing a Management Overview of the Company
Dirt Bike is a small company which is located in Carbondale, Colorado. This company produces and sells its own products. The company itself was founded in 1991 and it produces dirt bikes for racing. The goal of the company is to expand further than it already has. The Dirt Bike U.S.A. was founded by Carl Schmidt and Steven McFadden. These guys have pushed their skills to the limit by developing frames for dirt bikes that were more suited to off-road handling and used these models to build their own dirt bikes models using motorcycle engines manufactured by other companies. It is a privately owned company with a large expansion. As far as products and services go, the owner of this company decided to go with foreign brands and wanted to capitalize on their proximity to the dirt bikes racing circuit and market in the United States. These guys offer top of the line products for their valuable customers. If somebody was to buy products from these guys, it would be worth it to spend the money on these products. They like to offer bikes that would perform and look better then the other competitors by using the best custom parts available. These dirt bikes engines are one of a kind shipped from Austrian called Rotax. They offer tires from Dunlop and the other parts of the bike like shocks absorbers are from the United States. The most essential and vital part of the dirt bike is the engine and these guys have top of the line engine on their bikes and this boosts up their annual sales of the bikes. The company offers great services and also a variety of bikes depending on the customers
choice and on how much a customer is willing to pay. The company currently offers four different models of dirt bikes. They are: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. These bikes differ in price ranges. The large majority of these bikes are sold in the United States and the price ranges from $3250 and $9000. Well, one thing that this company has not changed for is its management. It is still privately owned with Carl serving as CEO and Steven as President and Chief Operating Officer. As far as the employees go, the company has hired well over 120 workers, working in design, engineering and production of the dirt bikes. They also have hired three full time product designers and three engineers. The Dirt Bike U.S.A., however, maintains a ten-person service department to service warranties and customer problems with parts and motorcycle performance. The company has a basic structure and its line of work. It maintains a very friendly family atmosphere, encouraging teamwork, attention to detail and quality, and continual learning and innovation. In order for the company to become more successful, they have to ship their products abroad where other places like this kind of sport. They can commercialize through the internet and setting up websites for people to purchase them. As far as profits go, the company has been very successfully so far. The sport is picking up in America and as well as other countries. The prices of the bikes are fairly economical and effective. With prices being this cost effective, they will likely attract more customers. They have done very well annually. Their net sales are well over 60 thousands of dollars alone in the United States. We can say that the company is doing well for now with potential to make even more if the products are shipped abroad like Europe or Asia.
Expanding International Sales
Well, like any other companies, the dirt bike company should take its expansion abroad and expand its wings in Europe like foreign countries like Germany and Italy and France where these sports are likeable. The company should advertise in the powerful countries where the dollar is strong and people are willing to spend any kind of money on fun stuff like the dirt bikes. Europe is known for extreme sports and even though only a small percentage is sold there, they should increase it more to make more sales and money annually For as long as the Internet has been around, it has served its purpose for commercializing products online where everyone can see it and buy it. The internet can very well boost up sales of the dirt bikes sold in the United States. Some of the features that is should pose on the web should be the structure of the bike. People are more interested at how the bike looks rather then what engine has. Majority likes to know what they are getting for their moneys worth. It should also display its price range to let know the customers what they have to pay before hand. Countries in Europe are fascinated with good looking bikes and they will spend a lot of money to buy these products especially if it has not been introduced over there.
Performing a Competitive Analysis
Well, the dirt bike has become famous for its great technology and services that the Dirt Bike U.S.A. has to offer. Since these dirt bikes are top of the line, they should be tested for its durability out in the open fields. Some activities that will create the most value are plenty of trails, creeks gullies, washers, and hills. These activities should increase the value for the customers by have them test their product on one of these activities. If the customer is not satisfied then there should be improvement. Seeing how these bikes are top of the line, there should not be any problem selling these items over the internet or directly to the consumers. Other companies that can compete with dirt bikes would be like the jet skis companies. For the season of summer, people like to own a jet ski and also a dirt bike. This might become a minor setback on the Dirt Bike Company because of what people think is suitable for the season. Some of the competitive forces that can affect the industry are the price range. Some people might find it expensive to purchase such products. So prices could be the leading factor of the competitive forces that might affect the company slightly. Some of the competitive strategy that the company should imply to the customers is longer warranty and price deduction. They should have sales once every four months, this way people can buy more dirt bikes. They should also commercialize through the Internet and through ads to better increase the popularity of the dirt bikes. They should
give some bonuses when you purchase a dirt bike and other kinds of deductions. This will guarantee customer satisfactions and therefore will boost up the sales for the year.
Developing an E-Commerce Strategy
Dirt bikes can significantly benefit from e-commerce. E-commerce has helped many companies throughout the world no matter how big or small. Since Dirt bikes specialize in selling parts and motorcycles, on its website it should sell their products. However since they usually sell their products through authorized dealers; they should continue to do so on the site. There should be a whole section where to buy the products and when you click on the product the customer wants to buy, they will be redirected to authorized dealers site. This option will only occur if the dealer does not give Dirt bike permission to sell their product directly from the Dirt bike site. Dirt bike should also mainly be advertising the dealers and the products, but also include a news sections and other various sections. Customer service should be included in the sites structure. Their customer service should be set up that there is an email address to ask questions but also give out a phone number, just in case the customer doesnt want to wait for an email response.
The web site would be of great value to Dirt bike. Instead of fans of the company only hearing news about them in magazines, they can log on and check them out real quick. For Dirt bike to create this site they would have to contact a web designer and hire them to create one. This would run them between $25-$100 and depending if the designer is a well known pro. Dirt bike could create a membership fee of low cost which would include discounts and subscriptions to magazines.
The web site will include news sections and advertisements of the magazines that support them. They will also have a section that will allow customers to buy the motorcycles and /or parts. Examples: mixunit.com and King-mag.com.