Transcript Alpha Lake Bike Rental and Repair

ALPHA LAKE BIKE RENTAL
AND REPAIR
Case Study
S.W.O.T Analysis
Strengths
Internationally known location
Crankworkx Fest
Weaknesses
Not by
tourists/Whistler
Village
poor location
80% of business
in Jun-Aug
(seasonal)
Lacks diversity
(bikes only)
Minimal
marketing (local
paper only)
Unknown to
tourists
Pays for bike
service, rather
than self service
Loyal clientele
Spare storage space
Strong summer months
Newer bikes for rent
Little competition
low overhead (1 salary, 1312.50 month rent)
S.W.O.T Analysis
Opportunities
Promote through
MB competitions in
Whistler
(ie.Crankworx)
Threats
Move to Creek
area
closer to village,
lower rent, larger
Move upmarket
(high end bike
rental)
Internet
advertising
Offer
training/tours
Offer ski and
snowboard rentals
in winter months
Change work
hours
Rent is set to
go up 10%
Worsening
July
performance
Weather has
potential to
be negative
external
factor
Possibilities
of more
competition
8.3 K/M from Village
Definitely Location
What Decisions to make
Minor
Major
Cut employee hours
Relocation to
Olympic Village
Less hours on weekdays,
more on weekends
Have Promotions
Diversification
Make a website
Cover his & employees
car in advertising
Higher ration of
adult to kid’s
bikes
Assumptions
Assuming that he
wants to keep his
business
Assuming he does
not want to sublease for off months
Assuming he has
cash flow to be
patient
Alternative Strategies
Integrate Himself into the
Business more
Storage or Mailbox Rentals
Relocate
Strengths
-less labour costs
-better understanding of
business and products
-consistent income 365 days
of year
-more exposure through
related business
-more exposure,
-better access to market
-larger space
Weaknesses
-more work for him
-difficulty transitioning into
new position
-more work/broader range of
work
-liabilities and related
insurance
-significant increase in
overhead
-significant increase in
competition
Strategies
Solution



Move Business to Whistler Village
Why:
-Larger customer base (residents/tourists)
-More Exposure in the Village
-Former Olympic competitor can set him apart from crowd
-Function Junction rent increase
-No expansion opportunity in Function Junction
-Diversification if no income during lean season
How:
-Rent out the location in Whistler Village
-Buy more adult bikes & higher end bikes
-Market himself and his business
(ie: local events, sponsorship events, hotel discount tie-ins, groupon)
-Raise Prices
Solution cont…
We’re sure with a
move Adam Craig
will go from
feeling like this….
To feeling like this…
Course Components Used
Marketing Mix
 S.W.O.T Analysis
 Growth Strategies
Market Product Analysis
 Situational Analysis
 Market Scanning

