Brompton Bicycle

Part I

Use the SWOT framework of analysis to critically examine the internal and external

environment of Brompton Bicycle as described in the case study. Finish your

analysis by providing recommendations to Brompton Bicycle about future actions

they should take for business success.

Introduction

This book looks at the case study of the Brompton Bicycle as it struggles to fight off a stiff competition from other manufacturers. Using the SWOT model to analyse its internal and external environment, we evaluate those strengths it needs to capitalise on, and the weaknesses within the business that exposed it to open competition, as well as consider the opportunities present in the sector and the threats it faces as a company. Finally a suggestion on possible steps that will help lessen these threats as well as recommendations on future actions it should take for its business success.

Strengths

Can boost production

Change of management

Debt free firm

Makes the best folding bike

Unique product

Products retains original nature

An inbuilt engineering values

After sales services

Waiting time reduced to 3 weeks

Weaknesses

Six- months production lead time

Sluggish production methods

Unable to meet demand

Loss of market share

Patent expired eight years ago

Trains workforce due to skill shortage

Location is detriment to success

Opportunities

Huge market potential

US/Far East market is growing in sales

Outsource of non-core components

150.000 devoted customers worldwide

Threats

Competitors produces large quantities

Competitors sells at lower price

Competitors may invest in research and development

Table 1 The SWOT framework

Strengths

Brompton Bicycle has quite a number of strengths to draw from in its bid to withstand the competition. One of those strengths is its brand recognition. It produces good quality bicycles with the right price to match.

There are vast business...