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This paper analyzes and discusses a case study of a small growing company Dirt Bikes USA which produces and sells dirt bike models for racing and off-road recreational use. The report touches upon the company's goals and gives information concerning the products and services which are provided by the company. The report gives all the necessary data about the company's organization and management. Moreover, it provides analysis ans evaluation of the best markets for Dirt Bike's products and gives some recommendations regarding the use of Web to increase the international sales.
Case Study Analysis
Dirt Bikes USA
Dirt Bikes USA is a small company located in Carbondale, which produces dirt bikes most of which are sold in the USA. The company does not have its shops and sells the product by means of distributors located in the USA. The company has already got the international sales but they are miserable. It is very important for Dirt Bikes USA to find more buyers abroad and expand its manufacturing.
ANALYSIS OF DIRT BIKES USA COMPANY
The History of the company Dirt Bikes USA goes back to 1993 when two young men, experienced bikers, Carl Schmidt and Steven McFadden went into business. The main aim of their business was to produce dirt bikes. At that time dirt bikes enjoyed high rate of popularity in the United States. These young men had some engineering skills which helped them to invent special frames for their bikes. They used the engines of such famous companies as Honda and Rotax Motors in order to build their own models of dirt bikes. The company's goal was to launch manufacturing of well salable dirt bikes which would comply with the customers' requirements: high quality of materials used for manufacturing, wearing qualities, usability. Today, when much of the work has already been done, the goals of the company are the following ones:
to expand the manufacturing of dirt bikes;
to find new ways of promotion the product;
to find new customers;
to improve the quality of the product;
to raise the rating of the company.
But the major aim of the company is to open a manufacturing unit and sales outlets in major markets (India, Europe, Asian countries)
The culture of the company Dirt Bikes USA which denotes the shared values and practices of the employees who work for this company, is represented by a so-called "urgent" culture. This type of culture has such distinguishing features as "positive work environment, with tight bonds among the employees of the company". (Moss, 2001)
The employees are anxious about the company's mission and try to do their best to achieve the main goals of the company. According to the data represented on the site of Dirt Bikes USA, we learn that the company has a friendly family atmosphere and an encouraging team work. The employees pay great attention to the quality of their work. They try to learn more and more and to apply their knowledge and introduce their innovations. (Dirt Bikes USA)
The characteristics of culture also includes such terms as "weak" and "strong" culture. (Heathfield, n.d.) Dirt Bikes USA has strong culture because most employees of the company agree on culture. For example, it is known that many of Dirt Bikes employees are "dirt bike racing enthusiasts" who often take part in different racing competitions in order to promote the products of their company. (Dirt Bikes USA)
Dirt Bike USA is engaged in manufacturing and distribution of the product. However, the company does not use direct selling. It works with 40 distributor who are located in different parts of the USA. Moreover, the company cooperates with European distributors selling a small percentage of dirt bikes in Europe.
There two types of product available to the customers namely Enduro and Moto. Today the company offers four models of dirt bikes:
the Enduro 250 - $3250 (see fig.1)
the Enduro 550 - $7600 (see fig.2)
the Moto 300 - $4295 (see fig.3)
the Moto 450 - $8995 (see fig.4)
Fig.1 Enduro 250 Fig.2 Enduro 550
Fig.3 Moto 300 Fig.4 Moto 450
The difference between these models in concluded in construction and the purpose of use. For example, Enduro models are mostly for endurance racers, Moto models are for moto racing. Speaking about the financial performance of the company, it is necessary to say that sales revenues are not steady growing. (Dirt Bikes USA)
It is known that about 120 employees work in engineering, design and production departments of Dirt Bikes USA. Among them there are 3 designers and 3 engineers, 4 employees who represent Parts department, 10 employees work in Service warranties department, 5 employees work in Shipping and receiving department. The Sales staff consists of a marketing manager and 5 sales representatives. The corporate administrative staff consists of a controller, an accountant and two human resources staff members, three secretaries, two information systems specialists.
There are several levels of management in Dirt Bikes USA company:
Top-level Managers are Carl Schmidt who serves as CEO or Chief Executive Officer and Steven McFadden who serves as COO or Chief Operational Officer and the President of the company;
Middle-level Managers are not included into the levels of management;
First-level Manager is represented by a marketing manager in the Sales Department.
So, we cannot say that there are levels of management in this company. Speaking about the types of information systems and technologies which benefit the company, the Supply chain management system will help this company to manage its inventory levels in a proper way. (Supply chain management)
Customer relationship management system will be of use too.
One more system is Extranet which will allow the dealers to communicate in a direct way with the production department.
According to some statistical data, it is known that dirt bikes are very popular in such countries as Canada, Mexico, Australia, the United States, China and some other countries which have mud-locked roads and even lack of roads.
In order to find out what countries will be the best markets for Dirt Bikes products, it is necessary to learn about the per capita income of these countries. For example, China's per capita income is $4,282; Australia - $54,868; the United Kingdom - $36,298; Canada - $45,887; Ireland - $45,642; New Zealand - $31,588; Mexico - $9,283 and others. (International Monetary Fund)
It is clear that those countries which have a higher per capita will be the best markets for Dirt Bikes product because the people who live in these countries will be able to buy dirt bikes.
The company should use Web to increase international sales and domestic sales. It will be a good advertising of the product. People from different countries of the world will have an opportunity to get the information about the company and its product. For customers it is also an easy way to choose and buy a dirt bike. As e-commerce is very popular nowadays, I am sure that it will benefit the company and attract thousands of new customers from all over the world.
One more thing is that it is better to sell both the dirt bikes and the spare parts online in order not to lose the customers. It's better to keep a phone service for creating better relationship with the customers.
I think that the main features which should be placed on the Web site of Dirt Bikes USA company to attract the buyers are the following ones:
photographs of all the models of dirt bikes;
the description of the models including their advantages, technical characteristics, price;
information concerning the delivery;
information concerning the possibility to buy a dirt bike on credit;
information concerning warranty responsibility;
information concerning the supply of spare parts for dirt bikes;
information concerning discount and price reduction for regular buyers;
Feedback of regular buyers and those who were satisfied with the product of Dirt Bikes USA company;
information concerning the company's distributors including their phone numbers and e-mails.
I am sure that a Web site will help the company to take a deserved place in the list of dirt bikes manufactures and to increase the amount of sales.
One more recommendation concerning the success of business for Dirt Bikes is to open a company store in the USA.
In conclusion, it is necessary to say that Dirt Bikes USA company has vast opportunities to expand the production and sales of the product. A good advertising of dirt bikes by means of web site will not only promote the product but also attract a great deal of buyers from all over the world.
A company's store will also enlarge the amount of sales. It is very important for Dirt Bikes to use a wide range of information systems in order to favor its design and manufacture, sales and services.