COMPANY ANALYSIS FOR TAILORED BIKES (Research Paper Sample)

Tailored Bikes Company Analysis Student’s Name Institutional Affiliation Tailored Bikes Company Analysis Introduction To this point, Tailored Bikes seems to have been a success in selling custom made bikes. However, the company has been reliant on being in the correct location, and utilizing its overall management. To this point, the company has failed to properly manage its strategic activities and limited resources. Tailored Bikes can only remain this competitive and develop in the market if this leadership approach persists. Tailored Bikes' success is dependent on a number of factors. A contemporary SWOT analysis will be created so as to assist with, trend analysis, competitor environment, financial statement analysis, and corporate strategy suggestions in this document. Financial Analysis, Second year performance Financial documents such as the Statement Of income, Statement of Cash flow, and Balance Sheet help to understand a company's strengths and limitations. As financial advisors, our primary mission help Tailored Bikes in better understanding its financial information and identifying areas where they may improve in order to achieve a competitive advantage in the market. Tailored Bikes’ financial statements show that the company is projected to produce estimated revenues of $28,000, and $878,000 in the second, and third quarter respectively. However, subsequent quarters will register nil revenues. This would lead to a gross profit of $14,126, and $579,671 in the two mentioned quarters respectively. The company’s revenues will be derived from recreational, mountain, and speed bikes. Financial performance= net profit + gross profit 2 total issued shares = ($39,208+$579,671) /2/ 2,500,000= 8.08 The organization’s operating profit will be = Yearly gross profit – yearly total expenses $593,797- $1,010,447= ($416,650). This means that the first year of operations are expected to yield a loss of $416,650The company is also expected to record a modest gross profit of $593,797, and total yearly expenses of $1,010,447. Making the company incur a loss for the financial year under study. As a new business, and one with operating obligations, the company is expected to incur high costs related to Research & development, quality control, system improvement, advertising, store expenditure, depreciation of machinery, marketing research, shipping and internet marketing. For the entire financial year under study, (Q1 + Q2 + Q3 + Q4) = $1,010,447. The purpose of this section is to assist Tailored Bikes to compare its financials to the competitors' and work on refining the process by developing different flow diagrams to enhance efficiency. For investors, a company with efficient debt ratios, lower expenses and higher revenues is always good. The goal is to assist Tailored Bikes in becoming more financially solid, which will allow it to obtain resources for expansion, which is essential for attracting more customers. Market Analysis Bicycles have registered significant growth in terms of sales revenues in recent years in the United States. Bicycles sales reached a high of $6.9 billion in 2020. With over 40% of this sales revenue coming from the country’s 10 largest bicycle manufacturers. The bicycle industry is expected to grow at an annual compounded growth rate of 5.7% (2017-2030) (Buning, 2019). This is largely owing to expected increases in population levels, and increased awareness for a healthy lifestyle and green environment among millennials. Individuals who purchase bicycles in the US have an average yearly income of $37,000, and individuals who value living a healthy lifestyle. These individuals account for approximately 12.5% of the US population (Lange, 2021). Growth in bicycles sales is also largely attributed to government actions towards building infrastructure suitable for bikers. This includes cycling tracks, and paddle facilities. This means that Tailored Bikes has an opportunity to expand its product offerings, and cater for this diversified market. Competitive Market Analysis Despite the bicycle market being dominated by many big brands, it is important to note that the greatest share of bicycles sold in the sector is associated with the ‘other’ category. This accounts for over 32% of the sales revenue. Just because the market has no monopoly, it means that the market is largely diversified and strong. Tailored Bikes’ offerings face stiff competition from companies such as Aluminum precision products, Worksman cycles and Scifit. Aluminum precision products is highly specialized in manufacturing aerospace, automotive, industrial, and leisure products for those particular segments. The company manufactures special bikes with archery adjusting settings, receivers, and mounted special fire- arms. Worksman Cyles’ bicycles are industrial, recreational and very special bikes powered on electricity. Their bikes are suitable for vending, last mile deliveries, people with special needs and going to areas with low gravity. Lastly, Scifit is a manufacturer of bike accessories, and upright bikes. The company also manufactures treadmills, functionality trainers and workout equipment. All these companies have different lucrative partnerships which enable them to survive in the market, and hold significant competitive advantages. For instance, Scifit has partnered several industrial companies and it is currently the major supplier of industrial bikes, hence the company occupies a modest 15% market share in the US Bike industry. The company has also enhanced its logistics chains to enable a smooth flow of bikes from its factories right up to the final user. SWOT Analysis SWOT is a strategic tool used by organizations to do a self-audit, and evaluate the internal elements, relative to the external elements (opportunities and threats). The tool allow an organization to maintain a clear picture of the current operating environment and map a strategic pathway. Tailored Bikes’ strengths include talented and motivated employees, and an enterprising mindset by management. The company’s management can quickly solve probl...