LB160 eTMA 01 Brief summary of example on Brompton Bicycles
Brompton Bicycles, estimate this year they may sell nineteen, 000 foldable bikes with profits of £925, 1000 before taxes but they intend to to boost creation to 55, 000 cycles a year which has a £1million creation revamp and a big sales push targeted overseas. The organization is aware they need to see significant sales growth in the Uk and overseas in the event they want to stay a competitor in the quickly growing global market, however they have found problems just like capacity and slow development times along with patents which out of date 8 years ago. Although they remain covered by copyright laws other rivals can duplicate the invention. There is also the problem of being based in London, uk so the firm does not enjoy the low salary structure of Taiwan, in which 80% of bikes are produced. Brompton will be unwilling to relocate as they have had to educate most of its 85 personnel in specific skills. Brompton are competitive in other price areas because they have retained changes to all their bikes little over the past two decades so have been able to invest in equipment and all their very own previous marketing has been through word of mouth, that they can do need to give attention to in the future. Though competitors may compare upon quality and undercut all of them on value, last year 1 competitor manufactured 350, 1000 bikes, Brompton believes in engineering ethos and producing motorcycles which are built to last so would not want to lose sight with the quality of their bikes and turn into a mainstream dealer, as this would reduce its charm.