PEST and PORTER e-scan analysis of Detroit Bikes

NAME: ______________________________
Detroit Bikes
1. Apply the PEST and PORTER e-scan model to the Detroit Bikes business model. Based on this, what is
your take on the attractiveness of their industry? Please double check to make sure your name is on your
case summary.

PEST analysis of Detroit Bikes
Political  Political instabilities
 Tax tariffs
Economic  Low production cost
 High exchange rates
Social  Ethical code of conduct
 Employee Insurance and Health
insurances
Technological  Eco-friendly bikes and bicycles
 High mileage vehicles
Political instabilities adversely affect the business operations of Detroit Bikes. Within this, mention can be
made of the murder rates, which adds an interrogative parameter to the security of the employees. Along with
this, tax tariffs act as obstacle in the importing and exporting the services to the foreign markets. High pension
costs, lack of appropriate funds, quicken loans were introduced for improvising on the situation (Becherer &
Helms, 2016). Offshore management enhanced the awareness about the prospective clients, who contributes in
the productivity through the foreign investments. Selecting the ethically minded customers proves effective for the
Detroit Bikes in terms of enhancing the brand image. Within this, mention can be made of the ethical code of
conduct, which helps in averting the risks of conflicts, discrimination and harassments. Technology upgrades the
standards and quality of the performance. Valos et al. (2017) argues that stable contacts with the research and
development team is assistance towards acquiring infrastructural development through the means of latest and
modern technologies. Typical evidence of this lies in the production of eco-friendly bikes and bikes, which gives

more mileage. Initiatives like insurances reflect the conscious approach towards the wellbeing of the clients and
customers.
PORTER’s e-scan model
Competitor rivalry
Detroit Bikes face tough competition from Detroit Bicycle Company and Shinola. Major drive behind this is
the spare parts of the bikes are imported. The prices of importing the parts is difficult for the clients to avail. Along
with this, operational cost also differs. In case of Detroit Bicycle, the cost is approximately, $3200 and in case of
Shinola, the price of the bikes ranges from $1000-$2950.
Buying power of the suppliers
Most of the suppliers do not belong to the standards required by Detroit Bikes. This is in terms of the
incapability towards coping up with the large volume of production. Detroit Bicycle and Shinola targets markets
with high end for increasing the profit margin (Rothwell et al. 2017).
Threat of substitutes