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