Use the SWOT framework of analysis to critically examine the internal and external environment of Brompton Bicycle as described in the case study. Finish your analysis by providing recommendations to Brompton Bicycle about future actions they should take for business success.
Brompton Bicycle – A SWOT analysis
Brompton Bicycle are looking to increase their future sales to over 19,000 folding machines (Smith 2008 p5) and increase their revenues, whilst maintaining their ‘quality’ brand image. Their new managing director Will Butler-Adams has acknowledged that there are some issues that need addressing before they can achieve this. Therefore below is a table which analyses the company’s strengths, weaknesses, opportunities and threats.
StrengthsUnique, copyrighted designLarge Overseas MarketRefined manufacturing processGood Reputation associated with * Brand * Quality / Engineering Ethos * ‘Quirky’ BritainDebt-free | WeaknessesSlow productionLong waiting listsNational shortage of skilled workersHigh labour costsHigh location costsLoss of direct salesRestricted overseas sales |
OpportunitiesManagement restructureTarget Market (such as commuters)Environment ‘Going Green’OutsourcingIncreased online activity * Marketing * Promotion * SalesInvestment in * Production * Tooling * Workers * Research & Development | ThreatsExpired patentsCompetitors * Low labour costs * Low location costs * Lower product prices * High sales / market shareExport Regulations |
Brompton Bicycle is a company that has a foundation that has been laid by their strengths. Their unique bicycle design and the refined manufacturing process (Smith 2008 p5), of their machines has helped their reputation to grow. Their reputation is not only based on their ‘engineering ethos’ (ibid), which equates to the consumer purchasing a good quality product, but for also being ‘quintessentially British’ (Smith, 2006, p6).
However, as they look to build upon this...