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1 IE BUSINESS SCHOOL APPLICATION AFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?
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Industry Challenges

Apr 09, 2017

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Rob Valentini
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Page 1: Industry Challenges

1

IE BUSINESS SCHOOL APPLICATIONAFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY

What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?

Page 2: Industry Challenges

2

During my studies at IE Business School I would like to focus my efforts on After Market sales in the sports cycling industry in relation to DT Swiss.

DT SWISS (ASIA) FACTORYAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Page 3: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Spokes and Nipples

Page 4: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Hubs

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Page 5: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Rims

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Page 6: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

RWS

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Page 7: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Wheels

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Page 8: Industry Challenges

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DT SWISS PRODUCT RANGEAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

and Suspension

DT Swiss is a manufacturer of high end cycling components. Our products range from:

Page 9: Industry Challenges

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CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

Page 10: Industry Challenges

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CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

$

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

Page 11: Industry Challenges

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CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

RETAILER

$$

It is then sold on to a local retailer, whereby it is sold to the end customer.

DISTRIBUTOR

$

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

MANUFACTURER

The industry is dominated by a very traditional form of marketing products.

Page 12: Industry Challenges

12

CURRENT DISTRIBUTION MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

$ $$ $$$

The industry is dominated by a very traditional form of marketing products.

The brand or manufacturer first produces its product, then sells this to an importer/distributor.

It is then sold on to a local retailer, whereby it is sold to the end customer.

Page 13: Industry Challenges

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BENEFITS OF THE TRADITIONAL MODEL

MANUFACTURER

The main benefit is that the manufacturer has increased cash flow after selling to the distributor.

DISTRIBUTOR

AFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

Page 14: Industry Challenges

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BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

$MANUFACTURER

The main benefit is that the manufacturer has increased cash flow after selling to the distributor.

DISTRIBUTOR

$$

Page 15: Industry Challenges

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BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

We can then negotiate better terms with suppliers and plan production accordingly.

MANUFACTURER

SUPPLIER

Page 16: Industry Challenges

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BENEFITS OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

It also allows us to plan our budget and staff requirements. Giving us a clear picture on growth.

Page 17: Industry Challenges

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DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

Page 18: Industry Challenges

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DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$

Page 19: Industry Challenges

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DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$$$

Page 20: Industry Challenges

20

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

The main drawback is that along each step of the way the product becomes more and more expensive as more layers of margin are added onto the final price.

$$$ $ $$

Page 21: Industry Challenges

21

DRAWBACK OF THE TRADITIONAL MODELAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

DISTRIBUTOR

MANUFACTURER

RETAILER

YOUR NEW WHEELS

$$$ $ $$

While at IE Business School I would like to work on a business plan for DT Swiss to implement a direct selling model, eliminate middle men, save our customers money, and increase our bottom line.

Page 22: Industry Challenges

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PROPOSED SOLUTIONAFTER MARKET CHALLENGES IN THE CYCLING INDUSTRY

MANUFACTURER YOUR NEW WHEELS

$

While at IE Business School I would like to work on a business plan for DT Swiss to implement a direct selling model, eliminate middle men, save our customers money, and increase our bottom line.

Page 23: Industry Challenges

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IE BUSINESS SCHOOL APPLICATIONAFTERMARKET CHALLENGES IN THE CYCLING INDUSTRY

This presentation was created by Robert Valentini as part of an application to IE Business School.