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By Binita Kar Fareez Bhathena Pratima Shinde

Introduction Business Setup Entry Strategy in Overseas Market Advanced Manufacturing Techniques Sourcing Strategy Marketing Strategy Brand Management Research and Development and Innovation Strategy Survey + Indian scenario Conclusion

Introduction

Giant Bicycles was established in 1972, mainly into bicycles & bicycle components production Giant Bicycles Corporate

Vision is to become The Worlds Best Bicycle Company Mission of being The Global Bicycle Company

Giant Bicycles Business activities involves

All-road Bicycles 74.14% Indoor Sports Bicycles 1.5% Electric Bicycles 1.73% Bicycle Parts 22.63%

Business Setup

The company established it success through Original Design Manufacture for famous global brands like SCHWINN and TREK Subsequently setting up there own manufacturing units and service center

Entry Strategy in Overseas Market

United States

Europe

China

Entry Strategy in Overseas Market

EUROPE

Europes major imports was for two wheelers products which was originated in Taiwan, hence it was crucial market for Taiwan In 2001, Giants business was able to gain 28% exports out of its total bicycle Giants acquired market share in Europe was on account of three major factors

They set up a production plant and subsidiaries. The increasing in riders for mountain biking in Europe during mid 80s Further, Europe did imposed 30.6% antidumping duties on Chinese bicycles which spurred the growth

Entry Strategy in Overseas Market

Establishment of Single European Market turnout to be advantages to domestic players such as

Closeness to market Getting better market info Stimulating demand Removing tariff Reducing transport cost

In order to reap these benefits Giant set up a wholly owned Holding company in Netherlands followed by sales subsidiaries in Germany, UK, France by recruiting local staff fluent in local language Giant adopted an export strategy to enter Europe and focusing on mass production. After achieving a steady growth in sales, Giant Europe Manufacturing Company was set up which was earlier known as a holding company in Netherlands and
began manufacturing since 1997.

Entry Strategy in Overseas Market

United States

Due to decrease in sales over a time period the company speed its promotional activities for the self brand Entered the market by setting up wholly owned sales subsidiaries in 1987 gaining 9.56% market share

Entry Strategy in Overseas Market

China

In 1993, company penetrated the market with sales subsidiaries and wholly owned Green field venture Joint Venture strategy was adopted with Chinese biggest bicycle manufacturer to produce low-priced bicycles, hereby minimizing the risk and gaining competitive advantage

Advanced Manufacturing Techniques

Giant became Taiwans largest Original Design and Original Brand manufacturing company, own and operates four manufacturing company in Taiwan, China (two companies) and Europe Giant was specialized in Design, Development and Manufacturing which made the company Original Equipment Manufacturer Giant uses state of the art machinery producing the quality of custom built bikes with the efficiency of large scale manufacturing facility They have a tight control on quality and costs by opting forging process to manufacturing techniques such as fluid and press forming

Sourcing Strategy

Derailleur System was bought from the open market, all other components are purchased through internal organization and quasi integration Owned two component-manufacturing plants in Taiwan and China

Company embarked on Global Sourcing-Decentralized, strategy which poses the risk of exchange rate fluctuations

Marketing Strategy

Giant is a global corporation and extensive enterprise networks through its regional sales & marketing offices in sixty countries
Regional offices analysis the changing market trends, while the headquarters overseas look into brand management, product manufacturing, R&D, finance & global marketing Global Giant, Local Touch provided freedom and autonomy to the regional sales offices to pursue market-specific sales & marketing The company had adopted High coordination approach to minimize the cost in the marketing activities

Brand Management

Cycling sport was supported and initiated through its sponsorship professionals and amateur cycling team at international and regional levels. Sponsorship enables the developers to see their designs in real world settings and leads towards further product development

Company has been delivered the best-designed and best quality bicycles to its consumers as a part of Total Best Value

Research and Development and Innovation Strategy

Emphasis on R&D to develop high quality models. Resources where concentrated in Taiwan, to prevent duplication of efforts & leakage of ideas Considering the changes in the consumers preference local R&D offices support was setup in the key locations, then the ideas where transferred to major centre in Taiwan Giants Innovation:

Worlds first composite bicycles of chromoly instead of steel MCR road bicycles carbon composite bicycle which was rewarded as Best New Product in 1998 by Business Week Light weight aluminum designed namely Giant TCR Compact Road Frame

Survey + Indian scenario

Lafree forefront electric-battery assisted technology, achieved great success in Asia

Add up points on Survey + Indian scenario

Conclusion

Giant is designing and developing products to reach people in every segment of the cycling population It symbolizes the future of alternative transportation and a cleaner environment which will lead to Bicycle-Friendly Nations