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  

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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 

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