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Industry Challenges

Date post: 09-Apr-2017
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1 IE BUSINESS SCHOOL APPLICATION AFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?
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1

IE BUSINESS SCHOOL APPLICATIONAFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY

What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?

2

During my studies at IE Business School I would like to focus my efforts on After Market sales in the sports cycling industry in relation to DT Swiss.

DT SWISS (ASIA) FACTORYAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

3

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Spokes and Nipples

4

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Hubs

DT Swiss is a manufacturer of high end cycling components. Our products range from:

5

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Rims

DT Swiss is a manufacturer of high end cycling components. Our products range from:

6

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

RWS

DT Swiss is a manufacturer of high end cycling components. Our products range from:

7

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Wheels

DT Swiss is a manufacturer of high end cycling components. Our products range from:

8

DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

and Suspension

DT Swiss is a manufacturer of high end cycling components. Our products range from:

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CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

10

CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

$

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

11

CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

RETAILER

$$

It is then sold on to a local retailer, whereby it is sold to the end customer.

DISTRIBUTOR

$

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

12

CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

$ $$ $$$

The industry is dominated by a very traditional form of marketing products.

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

It is then sold on to a local retailer, whereby it is sold to the end customer.

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BENEFITS OF THE TRADITIONAL MODEL

MANUFACTURER

The main benefit is that the manufacturer has increased cash flow after selling to the distributor.

DISTRIBUTOR

AFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

14

BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

$MANUFACTURER

The main benefit is that the manufacturer has increased cash flow after selling to the distributor.

DISTRIBUTOR

$$

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BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

We can then negotiate better terms with suppliers and plan production accordingly.

MANUFACTURER

SUPPLIER

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BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

It also allows us to plan our budget and staff requirements. Giving us a clear picture on growth.

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DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

18

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$

19

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$$$

20

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$$$ $ $$

21

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

$$$ $ $$

While at IE Business School I would like to work on a business plan for DT Swiss to implement a direct selling model, eliminate middle men, save our customers money, and increase our bottom line.

22

PROPOSED SOLUTIONAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

MANUFACTURER YOUR NEW WHEELS

$

While at IE Business School I would like to work on a business plan for DT Swiss to implement a direct selling model, eliminate middle men, save our customers money, and increase our bottom line.

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IE BUSINESS SCHOOL APPLICATIONAFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY

This presentation was created by Robert Valentini as part of an application to IE Business School.


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