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Boo Bicycle SWOT

Boo Bicycles sells high-end customized bamboo bicycles that are more environmentally friendly than competitors' bikes. However, they have a small customer base and sell directly through their website, limiting sales opportunities. While bamboo bikes have durability advantages, some perceive them as less structurally sound. There is a growing market for affordable, stylish urban bikes. Introducing a lower-priced "Aluboo" model could allow Boo Bicycles to expand their customer base and generate more revenue, helping address their current weaknesses. However, more established competitors pose a threat that would need to be considered.

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Andrew Choi
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371 views1 page

Boo Bicycle SWOT

Boo Bicycles sells high-end customized bamboo bicycles that are more environmentally friendly than competitors' bikes. However, they have a small customer base and sell directly through their website, limiting sales opportunities. While bamboo bikes have durability advantages, some perceive them as less structurally sound. There is a growing market for affordable, stylish urban bikes. Introducing a lower-priced "Aluboo" model could allow Boo Bicycles to expand their customer base and generate more revenue, helping address their current weaknesses. However, more established competitors pose a threat that would need to be considered.

Uploaded by

Andrew Choi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Provide a complete situation analysis for Boo Bicycles at the time of the case.

Do you think they


should go ahead with the “price-accessible” Aluboo launch?

Using a SWOT analysis, below is an analysis of the current competitive landscape:

Strengths: Boo Bicycle sells bicycles made of bamboo, which is proven to offer a smoother ride
and higher durability. The materials used for Boo Bicycles are also more environmentally
friendly compared to its competitors. Boo sells bikes through webpage so it doesn’t lose a profit
margin through distributors like most other competitors. The bamboo material also makes Boo
Bicycles unique visually so the brand is easy to identify by the style. These bikes are high-end
customized bicycles. The frames of these bikes were manufactured in Vietnam where labor and
material costs were inexpensive.

Weaknesses: Because Boo uses its webpage as its sales channel, it has to deal with shipping
costs and logistics. Because of this, customers are not able to try the bikes first so they have to be
aware of the company and actively look for Boo bikes specifically. Boo Bicycle must also have
enough floor space to maintain inventory. The reputation of bamboo bikes has been hurt by other
competitors so buyers are wary of the structural integrity of the frames.

Although the bicycle materials were manufactured in Vietnam, the bikes were assembled by
hand at Boo headquarters. This is a very inefficient and slow process in the supply chain but it
allowed for customization, which Boo Bicycle is known for and is able to justify its high price
tag since custom bikes make up only 3% of the American market.

Opportunities: There are many opportunities that Boo Bicycles can tackle. Boo needs to figure
out how to destroy the misconception of bamboo bikes and its superior functionality over metal
bikes. This would make Boo Bicycles more appealing to those segments that worry about the
functional integrity of the bike.

The rise of the urban and fashion bicycle market is increasing with popularity as Americans are
leaning towards forgoing car ownership and becoming more environmentally friendly. Cities and
companies have started to promote bike riding by creating bike sharing programs and creating
bike routes and facilities. This makes cycling much more appealing to those on the fence and
will increase ridership. From a business standpoint, this creates the potential of bringing in more
customers into the market, leading to higher revenue.

Another huge opportunity that Boo Bicycle has is that there is a large segment of bike buyers
who don’t want to pay for expensive bikes because they’re not buying bikes based on
performance for intense riding. By introducing a mass-market bamboo bicycle with a similar
style that makes Boo Bicycles noticeable, Boo Bicycle has the potential to generate a lot more
revenue and expand into new segments of bike riders.

Threats: There are many competitors that share one or more characteristics that make Boo
Bicycles a unique brand.

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