California Choppers

CC caters to “older, wealthier motorcycle enthusiasts trying to regain some of the excitement of their youth”. Up to 2000, CC sales occurred in California, Arizona, Nevada, New Mexico, Oregon, and Washington. Based on this information, CC’s geographical segmentation is located in the American West coast. In addition, the advantage for having such a Western influence is due to the scenic nature of the roads (Ex. United States Route 305). The demographic nature of the target audience is older, retired baby boomers because of their lifestyles In this respect, CC is catering to a niche market by offering custom-made motorcycles to a specific demographic and geographic area.

Market Needs/Growth

Tensions between the current Chief Executive Officer (CEO) Jane Heathcliff and former CEO Arlen Doakes are causing stagnation in further business development and growth. While Heathcliff advocates for moderate growth, Doake wishes to expand CC towards an international market in Canada and Europe. Financial analysis reveals the decreased profits reported in 2005. Initial expansions plans failed because the company had “ineffective market development, inefficient production processes, excessive operating costs, and high financial leverage use”. Another problem with CC is the lack of accountability and responsibility by the board of directors and the CEO. Doakes effective ran CC like a tyranny, which allowed him 100% control of the company and a final say in all matters. Without an effective CEO to plan a course of action and an empowered board of directors to evaluate and carry out the CEO’s plan, CC could only stagnate.