Case Analysis Zane Cycle Group 4 PDF

ITA 2- GROUP 4
Saakshi Vernekar D-20-250

Kalpavi Rawal D-20-231
Kunal Kunkolienkar D-20-214
Gajanand Sharma D-20-242
Rishab Ramchandani D-20-230
Mitali Gawas D-20-210
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Zane cycle case study
FACTS
● Zane’s cycle is bicycle shop which was founded by Chirs Zane
● This shop is first seller of bicycle in several regions.
● He believed in his ability to succeed.
● His main purpose was to satisfy his customers by using new innovative
tools to achieve his future goals.
● Chris began his process at the age of twelve.
● Chris Zane wanted to be his own boss, so that he can collect necessary
resources and can start highly competitive bicycle.
● Chris knew that to become successful he would have to take some risk.
● Zane would not experience failure.
● He gave one-year warranty on his bicycle while others gave 90-day
warranty.
● He further offered lifetime warranty to his customers.
● He negotiated a deal with phone company and agreed to pay remainder
for two companies’ yellow page advertising.
● Calls to either of those numbers heard not only “The number you are
calling is no longer in service” but also “If you are in need of a bicycle
dealer, Zane Cycle’s will be happy to serve you”. By pressing zero, the
caller is automatically transferred to Chris.
● Chris Zane recognised that he had to give the appearance of being a
larger business.
● He contracted with a marketing co- operate firm to develop mail order
catalogue.
● His creativity boosted sales.
● He hired sales representatives and gave then freedom to make decisions
they needed to please the customer and make good sale.
Assumptions:
1) He knew that he wanted to make appeal of Larger Business to customers
even though it was a smaller firm
2)He had good Knowledge of dirty marketing tactics
3)- He knew Customer looks for better quality at lower price
4)Zane was a confident person and wanted to be sucessful in life.
5)He had never giving up attitude as he would never accept failure.
6)He had many ideas on how to increase his sales.
MINOR PROBLEM
1. Zane started at a very young age which had no guarantee of success
2. Zane cycles was giving one-year warranty whereas other companies were
giving only 90 days
3. He had a small bike shop competing with against larger retailers which
probably wouldn’t survive
4. Zane cycles gave lifetime guarantee to all transactions
5. Offering 1-year warranty would add up to his cost which will result in
losses.
6. Zane would be unsuccessful to satisfy his customers.
MAJOR PROBLEM
 Zane cycles was offering a lot of offers like lifetime guarantee and
doorstep pickup which would increase in expenditure
 Zayn took a lot of risk just because he had faith in his ability to be
successful.
Alternatives
1.He could have kept variety of cycles with ranging discounts, i.e. from cheaper
to medium to expensive.
Positives: Negatives:
•Increase in profit  keep different type of cycle the
•Discount will attract More shop requires a big warehouse
customer to visit their shop  this will require more working
fore
•There will be a brand image in  they shop may require huge
mind of people that Zane cycle keeps no. of funds
all kind of cycle in cheaper and best
rates.
•The shop will be known for its
value and variety (V2)
2.In order to maintain a loyal customer base he could have given a token of
love and appreciation to the ones who gave them large orders.
E.g. if someone has bought 2/3 cycles then he could have given a bottle stand
or the locks or the bells for free.
positives negavies
 this will create a goodwill of  this will affect the net profit
the shop in the customer’s  increase in unwanted expenses
mind
 this will create loyal customer
it will make the customer happy and
they will visit the shop again
3)Instead of taking risk, Zane should do proper planning and run his business.
• This would result in Profit • If he fails in proper
making for Zane. planning, he would face huge
• This would help Zane to losses.
minimise as much losses as • If he fails to draw a rigid
possible. plan, he wouldn’t be able to
• This would help Zane in expand and grow his business.
conducting his business efficiently
and help in long growth.
4)Zane should do proper research on the business.

• Proper research will help to • If his research is wrong, it
decide whether to run this can turn out to be a big failure for
business or not. him.
• Proper research will help • If he does not works
him to take steps which will lead according to the research done, he
him his business to grow and earn can face huge losses.
profit.
• Proper research will help
him to overcome losses.
5). Zane should know his competition and marketplace.

• This would help him to • If he sells his product where
decide whether the product which there is more of competition, it
he is selling, should be sold or not. would result him in losses.
• This would help him to • If he conducts his business
increase his profit by selling his in a place where there is a lot of
product where there is less competition, he won’t be able to
competition. run his business.
• This would help him to
grow and expand his business by
knowing his competition and
marketplace.
IMPLEMENTATION OF THE BEST ALTERNATIVE:

 The best solution in this case is that Zane should have proper knowledge
and should research well before starting his business and should know
his competition and marketplace which would avoid him in facing losses
and grow his business on a larger scale.
PLAN B:
 The next solution is that Zane shouldn’t be over confident and should
not take a lot of risk instead he should take time and create a rigid
plan, know the conditions of the market and after proper research, he
should go ahead with the decision which will help him to make profit.

 Advantage: Zane would know how to allocate his resources properly
and have a proper idea about the future.
 Disadvantage: it cannot give Zane guarantee and also requires great
implementation practices.
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ITA 2- GROUP 4

Saakshi Vernekar D-20-250

4)Zane should do proper research on the business.

5). Zane should know his competition and marketplace.

IMPLEMENTATION OF THE BEST ALTERNATIVE:

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