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Diamond Bikes
Business Plan
January 28,2014
Preet Parekh
Cho Shing Sze
Naijuan Fu
Guichi Guan
TABLE OF CONTENTS
Executive Summary…………………………………………………………………………….
Mission Statement………………………………………………………………………………
Situation Analysis………………………………………………………………………………
SWOT Analysis…………………………………………………………………………………
Business Resources………………………………………………………………………………
Business Strategies……………………………………………………………………………….
2. Mission Statement
Diamond Bike provides a new, safe, healthy, and creative trend towards the lifestyle of our consumers within the city. By creating and selling our special and unique products to the public market, it brings convenience and fun to the community. Our professional working team which designs and supervises all the details and production line of our goods and services promises that by riding Diamond Bike, our consumers will be distinctive from the rest. Our four key stakeholders include our working team, our clients, our investors, and government.
Our responsibility towards our consumers is to satisfy their basic needs and wants with Diamond Bike. Making their life easier and more comfortable. To our working team, we provide area for them to express their creativity on our products and services. By providing a cosy working environment of working area, we believe it can increase the sense of belonging and loyalty to each of our colleagues. To our investors, we hope to take Diamond Bike with us to every city in the world, and bring our products and services to every place. By expanding our business, investors will be able to gain profit on their investment. To government, we pledge that we will promote environmentally friendly bikes in our products, in order to provides a less CO2 emission community in every city with Diamond Bike.
Besides the products and services that we design and create for our consumers. Diamond Bike also offers a various type of accessories, parts, colors, shapes, and features to different types of request according to their needs and wants on our product. The customization part is meant to make your bike becomes a unique, daily accessories with our clients, like diamonds, shining everyday.
3. SITUATIONAL ANALYSIS (MARKET RESEARCH)
3.1 Economic Forces (Industry)
Diamond Bikes will be in the bicycle industry. We are focusing on the Mountain Bike
segment because the estimated potential market is about 120,000 units ,much higher than the Road Bike segment. of only 16,000 units. The largest companies in the industry are Petal to the Metal, Bolt Bikes, Panther Bikes and Firm 5.This industry is thriving as more and more people look to find eco-friendly ways to work and around the city. Sales also increase as people look to lose weight and become healthy. The bike industry is thriving and will continue to grow as long as people are trying to become fit and reduce waste.
3.2 Technological Forces
Bicycles have evolved a great amount over the last 20 years. Advances in material technology have made certain materials more affordable reducing the overall price of production and the retail price of a majority of bicycles. Lightweight aluminum and carbon fiber bikes have become very affordable increasing the amount of people riding bikes in cities and towns. Braking technology have also increased over the years. Before cyclists would have to use their feet to fully stop the bicycle on wet surfaces, today bikes stop on the second even in the snow. As parts such as brakes and tires improve, the cost of production also increase. Assembly and production have become much easier over the years as the number of factories and production lines have increased.
3.3 Competitors
Our main competitors are Petal to the Metal, Bolt Bikes, Panther Bikes and Firm 5. Petal to the Metal is currently our biggest competitor followed by Panther Bikes. In order to surpass our competition we need to offer bikes that stand out from the rest. Fully customizable bikes will be available allowing the customers to build the perfect bike of their dreams.The prices our competitors set play a big role in the amount of bikes we sell as customers will most likely go for the lowest priced bike with high quality and high awareness (brand name).
3.4 Regulation
All bicycles must meet certain regulations in order to be legal to ride and sell. Brakes must meet a certain stopping time in order to guarantee the safety of the rider on the road. Bicycles cannot have unfinished sheared metal edges or any sharp parts that may cut or harm the rider. Screws, bolts and nuts must be secured and cannot loosen during testing. Handlebars need to be symmetrical and no more than 16 inches about the seat in its lowest position. Pedals must have treads on both sides and reflectors.
SWOT Analysis
Business Resources:
Elena: CEO- Chief Executive Officer
Elena has the responsibility to look after the company’s operation. Her task is to make sure the company run successfully under her supervision. She makes important decisions based on the entire corporation, and she provides strategies on improving the operation systems of the company. She also gives permission on setting measures and goals for the company.
Preet: CFO- Chief Financial Officer
Preet has the responsibility to control and inspect the cash flow and financial documents and activities within the company. He needs to make sure everything is within the budget and provide financial strategies and suggestions to the company.
Alan: COO- Chief Operating Officer
Alan has the responsibility for inspecting the daily activities within the company. He needs to make sure that the goals and measures that set by CEO are achievable. He also needs to ensure that the employees under his control meet the quotas and limit.
Paul: CTO- Chief Technology Officer
Paul has the responsibility to make sure the technological requirements met with our product line. He needs to provides new technological ideas on the function with our new products and make sure the machinery and workers are adequate on their tasks.
Financial Resources:
Below is the Financial Resources that we invested when we took over the company:
Retail Price: $650
Production Quantity: 28,000
Forecast Sales Units: 28,000
Forecast Retail Sales: $18200000
Year’s Budget for TV: $380,000
Year’s Budget for Internet: $470,000
Year’s Budget for Magazines: $250,000
Year’s Budget for Public Relations: TV: $150,000
Internet: $180,000
Magazines: $200,000
In the future, we are trying to put our profit into more area and aspects of public relation. We will invest more on the commercials and advertisements including online, television, posters, magazines; that based on our products and services to invite more investors to invest on our company. Therefore, we can have more equity on our hand and expand the cycling market and opportunities of Diamond Bike to different cities. We will also borrow money from banks to give a further support on any strategies on operating the company or production line including the technological problems.
We also consider about the costs and debts on our production. After our company has developed in this industry, we may release another product line of cheaper bikes with less expensive materials to produce our products. There might also be other different models that we can think of to lower our production costs. Also when we has developed customer’s loyalty between consumers and our brand, we can set the price higher, in order to change our product line into a more high-end way. By increasing the selling prices and lowering the costs, it helps us to save budget effectively; and hence, less debts. By cutting the costs and expense, we are able to gain more equity. The equity that we have borrowed from banks and the investment from investors also make us have more financial resources in the future.
6. Business Strategy
Objective 1:
Plan:
Objective 2:
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Objective 3:
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Objective 4:
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