Bike Rider: Summative Assessment of Bike Manufacturing Company

This report presents a comprehensive business plan for "Bike Rider," a bike manufacturing company based in Great Manchester, UK. It outlines the company's business objectives, aiming for significant market share growth within the first three years. The report delves into value creation through the Customer Value Proposition Canvas, focusing on a Minimum Viable Product (MVP), and analyzes customer profiles, gains, pains, and jobs. Furthermore, it employs the 'Lean' Business Model Canvas to capture value and details a thorough development plan, including a marketing strategy with trade shows, advertisements, and website presence. The report also explores potential future directions, justifies the company as an investable opportunity, and concludes with references and appendices. The COO's responsibilities are analyzed, and the viability of the business is critically evaluated, highlighting the importance of custom fitting and high-quality components.

Bike Rider- “A Bike Manufacturing Company”
Part B Summative Assessment
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Table of Contents
Introduction......................................................................................................................................3
Business Objectives.........................................................................................................................3
Value creation through Customer Value Proposition Canvas (Minimum Viable Product)............4
Customer profile..........................................................................................................................4
Value Capture through ‘Lean’ Business Model Canvas..................................................................7
Detailed Development Plan.............................................................................................................8
Marketing Strategy......................................................................................................................8
Mission........................................................................................................................................8
Marketing Objectives...................................................................................................................8
Strategies......................................................................................................................................9
Marketing Mix.............................................................................................................................9
Possible Future directions..............................................................................................................11
Reason for which this lean startup is an investable opportunity...................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendices....................................................................................................................................15
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Introduction
Bike manufacturing requires a step by step procedure. Here the company name is “Bike Rider,
situated in Great Manchester, UK. In this study, objectives of bike manufacturing will be
presented in terms of profits, the customer value proposition will be analyzed through value
proposition canvas for a minimum viable product, and lean business model canvas will be
entailed. And then my responsibility as COO will be analyzed along with critical evaluation and
viability of the profitable business (R. and Prabhu, 2020). Instead of a more conventional
approach, the main difference between creating a lean startup and the Lean Startup Technique is
that founders should ask, "Should this product be made? Rather than is this product can be
made? "The process of creating a lean company is to find a challenge, test the problem, and
develop a solution that will solve the problem. There are three steps that entrepreneurs should
take to start developing a lean startup. It is necessary to understand whether or not the issue that
the product is addressing is enough for consumers to choose to buy it while finding a company
concept to use the LEAN startup approach (Albites Sanabria, 2019). Seeking a company concept
can be difficult, and hence it is important to pay attention to daily issues. For the product to gain
momentum, consumers must aggressively pursue solutions to the problem. Companies would
then build their product – minimum viable product (MVP). Businesses must test their MVP on
the market for actual consumers - early or no - to see if their concept is sustainable and to obtain
analyzable details.
Business Objectives
This bike manufacturing company "Bike Rider" will capture 4% of the market share in the first
year, 10% of the market share in the second year, and 15% in the third year. The competitive
advantage of Bike Rider is focused on its product, which allows us to have a variety of posts that
suit any rider correctly (Midgley, 2014). The number of posts depends on the weight of the
runners. There are no other custom fitting suppliers available. This is very valuable because the
way the post is tuned greatly affects the journey, the safety margin, and the weight. With the
post-customization tailored to the weight range of a rider, weight is just as high as safety and ride
quality is optimized by having adequate flex, damping friction on the roads and the trails. The
flex connected with the post is very much like a suspension and it is positive.
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Year Sales Revenue Profit Profit margin
Year 1 £2,40,000 £1,60,000 10%
Year 2 £4,00,000 £3,00,000 17%
Year 3 £6,00,000 £4,10,000 25%
Value creation through Customer Value Proposition Canvas
(Minimum Viable Product)
The customer value proposition is a tool to guarantee that the value and specifications of the
good or service are fulfilled. The partnership between two aspects of the larger business model
canvas of Osterwalder has been discussed in detail; client segments and valuation proposals. The
canvas may be used to enhance an existing product or service offering or to create a new offering
from scratch. MVP is a software edition that an organization wants to produce so that the team
can conveniently obtain the best possible data on its future clients and product reviews (Ode,
Rigby, and Proudlove, 2017). A crucial move in a successful start-up is product validation. It is
time to play with the concept of business in the real world in this phase.
Customer profile
Gains
Customers want a bike which will be kind of long-lasting and also it will provide the desired
service. This desired service can be explained from the perspective of the bike’s enough space,
longevity, and hassle-free service (Abad, 2020). When customers find that they have got their
services at an affordable price, they become delighted. They want to post-purchase happiness.
Pains
In the survey, it has been found that customers didn’t get their expected service due to the
problem of hassle. It is found that bikes remain long-lasting, but the problem occurs in the
different parts which obstruct the happiness of the customers. It is also found that sometimes
bike emits huge carbon which is harmful to the health of the bike rider and obviously for the
environment.
Customer jobs
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A bike is sometimes a dream vehicle for many people. They save money to buy a bike so that it
can be used in their daily operational activities. In the area of job sector, office going people use
a bike as it makes time-saving time by avoiding public transport. Through this society can be
remain moving by doing their daily functions smoothly (Kleber, 2018). Apart from the office
going people, it is used by businessmen, students vastly. So, there is a huge customer base for
bike manufactures. Customers want to have a reliable bike that will satisfy these needs of going
office smoothly, doing business activities without hassle, and going to universities and colleges
without disruptions.
Figure 01: Value Proposition Canvas (Somenahalli, 2020)
Gain creators
This “Bike Rider” manufacturer will produce products attaching the best quality. On the high
side, it will attribute one kilometer above 20,000 to 30,000 of the smaller sports motorcycles, and
on the 50 000 kilometers for larger ones. By analyzing the competitors, it has been found that
Harley-Davidson motorcycles maintained an average of 84% of their worth for five years by
model according to the details gathered by the Kelley Blue Book Official Motorcycle Guide.
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With the Indian, Ducati, and Triumph trailing marginally at 77%, BMW was not far behind, at
81%, with 73% and 72%. So, to satisfy the customers, this “Bike manufacturing” company will
include the best features.
Pain relievers
To mitigate the customer's complaints, the long-lasting feature will be applied. Lighting will be
attached to high quality. Our lighting will add to aesthetics and improve the motorcycle's
functionality. Adding lights to color will differentiate the bike. The visibility on dark roads
would also be improved (Ode, Rigby, and Proudlove, 2017). The upgrade of the illumination will
make the bike much more attractive if companies wish to sell.
Products and services
This “Bike Manufacturing” company will add the following features
 Adjustable saddle: Adjustable saddle will be applied to the bikes. This is a must for
people spending long hours riding. A saddle that doesn't suit well to the bottom will
cause some lasting harm and not just pain in the longer run. The saddle should be adapted
to the comfort of the rider as well as to the correct height since a decent bike stance can
result in back discomfort or can even cause long-term harm to a spine because the saddle
is either too high or too low (HEm, 2017). The saddle should also be the perfect height
for the horse since the whole weight of the rider is not to bear, but a nice deal.
 Good braking: Three types of brakes are predominantly available: rim brakes, rudder
brakes, and drums. Each type of brake has its special purpose, but all share one aim, to
minimize or even avoid the speed of the bicycle entirely.
 Getting the best tires: In this "Bike Rider" company, we shall attach the best tiers. Much
like brakes, there are quite a few selections when it comes to buying wheels. But
basically, they have the same sections which are the hub, spokes, nipples, and rim. The
centerpiece is the inner side of the wheel, and the centerpiece is the outer side of the
wheel. The spokes are the thin wires or bolts which link the center with the surface. The
nips protect the spokes while the rim is attached to the hub (R., 2020). Now, all these
pieces are necessary for them to last regardless of their use. The pneumatic itself is
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another big element in having the correct set of tires. Some pneumatic pipes suit the
normal road, some for off-road construction and even extra traction on a wet surface
Value Capture through ‘Lean’ Business Model Canvas
A business model canvas will be drawn here by attributing the key characteristics of the "Bike
Rider" company.
Table 01: Business model canvas.
Business Model Canvas
Key partners:
 Bike
insurance
company.
 Suppliers
of bike’s
parts
 Wholesal
ers and
retailers
for
purchasin
g bikes
 Bike
designing
company
Key activities:
 Bike
manufactur
ing
 Collecting
bikes’ parts
 Joining
parts to
make it in
full form.
 Bike
selling,
specifically
to
wholesalers
 Research
and
developme
nt
 Innovation
Value
proposition:
 Providing
long-
lasting
bikes
 Better
quality at
the
competiti
ve price
 Producing
low-
carbon
emission
bikes.
Customer
relationships:
 Customer
loyalty by
providing
the best
services.
 Attaining
word of
mouth from
customer
 Digital
services
through
providing
digital
functions in
bikes.
Customer
segments:
 Office
going
people
 College
and
university
level
students.
 Businessm
en.
Key resources:
 Strong
Channels:
 Social
Cost structure:
 Cost for
Revenue stream:
 Selling of
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research
and
developm
ent
 Innovativ
e
products.
 Skilled
employee.
 Best bike
designers.
 Economic
al
affluence
media like
Facebook,
Instagram,
and email.
 Websites.
 Word of
mouth from
customers
purchasin
g parts of
a bike.
 Cost of
shipping
 Cost of
advertisin
g
 Cost of
research
and
developm
ent
 Cost of
innovatio
n.
bikes.
 Selling
ideas to
other
manufactur
ers.
 Subscriptio
n fee from
customers.
Detailed Development Plan
Marketing Strategy
As the Chief Operational Officer, I prepared some marketing strategies, which are explained
below.
Trade Shows: At the largest trade fairs, Bike Rider will be available. At most, once an art
festival a year attends 75 percent of local bike stores. These displays will offer customers an
incentive to display potential items and to speak with business executives and position orders
before the fall.
Advertisements: Bike Store, A business publication, would be commercial. The majority of the
UK motorcycle stores will get a version from Bike Rider which highlights advertisement
possibilities.
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Websites: Bike Rider will create a site with the latest list of its deals. This is the current
knowledge and distribution origin for goods. The website would be an important source of
knowledge for both promotional events and retail store attendance.
Mission
The goal of Bike Riders is to establish a wide variety of bike and bike parts. We are there to
draw and support our clients (Rashad, 2017). All things will fall into line as we stick to the
principle. Our divisions meet our consumers' needs.
Marketing Objectives
 Return clients rise by 6% every year.
 Customer loyalty costs drop by 5 percent annually.
 Build Bike Rider's global consciousness of urban riding.
 Boost inventory by 15% every year by knowing the effectiveness of this pricing strategy
to the suppliers.
Strategies
The key aim of a Bike rider is to be the leading supplier of bike parts deals within the United
Kingdom (R. and Prabhu, 2020). To first build a consumer understanding of the products sold,
the marketing campaign then builds the client base and eventually moves for customer
satisfaction and company repeat.
The idea that bikes are trying to convey but they're a single stop for fantastic sales. This is
achieved using multiple approaches. Involvement in regional industry events is the first process.
Bike riders will build a stand to point out the goods they sell and tell suppliers that they're just an
origin of the surplus inventory.
Finally, Bike rider will have a comprehensive website that shows all the various items and latest
disponibility such as on buying possibilities (Garcia, et al 2011).
Marketing Mix
The promotional combination of Bike Riders consists of multiple marketing, delivery,
advertisement and issued orders, and client care techniques.
Product offered:
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 Motorbikes: The retro-cruiser is a strong second, and the athletics bike would be a
distant third of the current bikes. We also market some used bikes to our clients, who
order new motorcycles (Hoj et al., 2018).
 Accessories: Our selection of accessories is big. The group includes locks, machine
speedometers, grilles, storage frames, easy chairs, headlights, helmets, water bottles,
panniers/backpacks/message pockets, baby seats and trailers, bicycle parking racks, and
vehicle roof rack installations.
 Parts: Parts usually apply to parts or materials that are needed for the bike's basic
operation. Many are both central aspects and repair replacements, such as cranksets,
pedals, tires, derails, or brakes. Strictly retained are other such items as headsets, bottom
braces, spokes, chains, cable networks, or cable housings, but others will be selling to
riders who wish to work on their bikes (S.A. and M.M., 2020).
Customer engagement: With our broad channel portfolios we deliver a genuine value
proposition (through WhatsApp, Facebook, messenger, and many other apps). By the way, they
want, we strive to include clients. Only at the level of community support, they offer, retailers'
employees would be happy. Business strategies and treatment systems of Bike Riders stress the
value of satisfying the needs of consumers (Weitzel, 2017). Profits are almost assured if this is
done. We are bridging the divide between machine learning and artificial intelligence. By
recognizing problems and offering concrete input into customer loyalty, we lead company
outcomes through ingenuity, imagination, and technology.
Suppliers: There are several pieces of a bike. The important elements of a bike are wheels,
frame, seat, handlebars, and components. We may also see the helmet as a big safety issue. And
as we want to reduce our cost and give the best service to our suppliers, we get the parts from
different stores of Great Manchester.
Bike part Supplier Name
Wheels Wheel Guru, Bicycle Garage, Cycle Republic,
Halfords - Altrincham
Frame and components M & J Distributors Ltd, A6 Cycle Warehouse,
Bicycle Doctor
Seat and handlebars Road & Racing, Wilco Motosave, Cookson
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Cycles
Brake/shift levers, crank, front derailer, rear
derailer, cassette, and chain.
Rick Green Cycles, Oldham Motorcycle
Spares, DNA Cycling Limited, The Derby
Shop, Manchester Cycle Exchange Ltd, etc.
Prices: A dynamic algorithm that takes into consideration profit margins, the supervised
duration of the company, and the device's supply in other distributors shall become the
recommended price (Garcia, et al 2011). And we generally try to keep the price at a mid-level
range of bikes like from $2000- $20000. But we also keep some top-level bikes priced at
$32,300.
Retailing: All goods are delivered to consumers in Great Manchester, UK, from Bike Riders
Store.
Endorsement and advertising: To generate exposure, Bike Rider uses multi-turn ads. Like
showing up in parks, pages in social media (Facebook, Twitter), and the all-time bypass leaflets.
Primary focal points
As the COO I think, the returns on investment in the production of business development (profit)
will be important, but consumer growth and brand awareness will be the main primary objectives
for this company. For developed and emerging organizations, we give multiple possibilities. Our
joint efforts can be transformed into a real bike design idea. No mass manufacturing. No mass
production. Elegant and plain. We try to determine who the closest customer is. A customer's
worth can be measured using a variety of criteria: expense point, value for life, purchase costs,
continuing cost of operation, bragging rights, brand activism, to name just a handful. To know
who is to be targeted and with what post (Weitzel, 2017). Take domestic shopping, for example.
Research has found that women make the bulk of buying choices, even though they are not real
consumers. Shoppers require experience to shop. This technique was perfected by direct-to-
consumer labels. It sells a lifestyle; Ever lane not only sells clothes, but it also sells organic and
body good clothing. Away not only sells luggage; it does sell body products. Brand history is one
of the most successful opportunities to strengthen consumer retention that we try to follow.
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Possible Future directions
Future technological changes: Companies now face the issue of smarter, slower processes,
more efficient manufacturing facilities, and better efficiency. A huge volume of useful data is
generated by the abundance of sensors in development environments (Mudhomath and Angadi,
2018). The majority of businesses who want to modernize their factories and production
processes will have one or more general goals:
 Will put the agile delivery of IT tech and production mentality into the plant's OT world.
The incorporation into OT of conventional IT infrastructure and procedures.
 Will allow the medium time to recover quicker by reducing downtime for predictive
repair equipment and automating program upgrades. If a failure or breakdown happens, a
quick recovery period should be expected.
 Will enable centralized management and control in one plant or through a variety of
plants to see the overall production process.
Changes in customer need: The easiest way to customize – to incorporate or change a product
to accommodate the customer. Personalization and adaptation are growing more than cosmetics.
It is the distinction between putting a customer's name to a commercially manufactured item and
creating a unique body product, between purchasing a pair of drugstore glasses and having
tumor-optimized chemotherapy. The individual has always been personalizing and adapting they
have traditionally become the affluent province of deals such as personalized customization and
high-performance vehicles (Rashad and Habib, 2017). In addition to their growing interest in
customization, customers are now increasingly willing to participate in making, or at least
planning, the goods they purchase. This is essentially a change in the identification from passive
receiver to active participant, which blurs the distinction between manufacturer and customer.
Reason for which this lean startup is an investable opportunity
When thinking about investment, investors think first about the possible reasons for which the
opportunity is coming, will the opportunity will be available for a long time, and will it be
profitable. Bikes are among the most common forms of transports, with 800 million bikes versus
two to one vehicle. Bikes are also the most energy-efficient vehicle: the bike consumes 35
calories a mile, while the car burns 1,860 calories a kilometer (1,156 calories per km) (Hoj et al.,
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2018). Fitness, race, and visiting was used not only for travel but also for bicycles. They come in
countless types and models, including running bikes and on-the-ground bikes as well as
stationary bikes, tricycles, and tandems. Lean startup is a simple set of guidelines for
entrepreneurs to develop their companies more effectively and at a reduced price under minimal
capital and massive uncertainty. It is based on the premise that businessmen should implicitly
conclude how their company functions and verify it directly and empirically (Albites Sanabria,
2019). If this start-up never existed, the world would be worse off because it would lose some
job opportunities, a little but economic factor and overall may be a growing business opportunity
or a brand. Increasing the problem of road pollution and increasing costs of fuel are projected to
remain the primary drivers of cycling requirements and hence increasing bike demand. Growing
public health issues will play a key role in the development of the global bike industry in the next
eight years, as well as the increased adoption of green transport in an attempt to minimize carbon
footprint. Also, rising political funding would drive bike purchases in years to come and prompt
the growth of dedicated cycling networks in developing and developed economies. Shortly, the
market for sports bikes will be directly boosted by a rising bike application in trekking and
leisure, along with a large number of bike races.
Conclusion
This can be hard to find and so daily issues should be considered. Companies must test their
MVPs on the demand for actual consumers – early or not. It is time to innovate with the urban
world with the business paradigm. This study demonstrates market priorities, value development,
consumer profile, and value acquisition. Then, a comprehensive bike rider growth strategy, the
future directions, and reasons for this lean start-up are an investment opportunity.
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References
Abad, P., 2020. Customer Value Proposition. SSRN Electronic Journal,.
Albites Sanabria, J., 2019. The New Business Road Test: What Entrepreneurs and Investors
Should Do Before Launching a Lean Startup, by John Mullins. Emprende y Transforma, 1(1),
pp.89-92.
Garcia, A., Altbuch, A., Rutherford, D., and Delo, M., 2011. Bike Rider. Sports & Exercise,
43(Suppl 1), pp.184-185.
HEm, A., 2017. Road Bike features. 61(6), pp.306-307.
Hoj, T., Bramwell, J., Lister, C., Grant, E., Crookston, B., Hall, C., and West, J., 2018.
Increasing Active Transportation Through Bike Use: Pilot Study Comparing the Health Benefits,
Attitudes, and Beliefs Surrounding E-Bikes and Conventional Bikes. Health and Surveillance,
4(4), p.e10461.
Kleber, D., 2018. Design Thinking for Creating an Increased Value Proposition to Improve
Customer Experience. ETIKONOMI, 17(2), pp.265-274.
Midgley, P., 2014. Bike lanes key to bike-share success. ECOS.
Mudhomath, V., and Angadi, P., 2018. Automatic Detection of Bike-Riders Without
Helmet. International Journal of Trend in Research and Development, Volume-2(Issue-5),
pp.1972-1975.
Ode, E., Rigby, J., and Proudlove, N., 2017. How Knowledge Management Processes Increase
Customer Value and Firm Performance Through Value Co-Creation. SSRN Electronic Journal.
R., S., 2020. Bike Rider. pp.58-60.
R., S., and Prabhu, D., 2020. Analysis and Design a Safeguard For Bike Rider. pp.58-60.
Rashad, D., and Habib, D., 2017. Evaluate the Associated Deformities in Motor Bike Riders.
Contemporary Research and Review.
Rashad, D., and Habib, D., 2017. Evaluate the Associated Deformities in Motor Bike Riders.
International Journal of Contemporary Research and Review.
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S.A., H., and M.M., F., 2020. Materials and technologies of parts for bikes. Operation of
Transport, 95(2), pp.92-97.
Somenahalli, S., 2020. Value proposition canvas. 40(5), pp.670-684.
Weitzel, K., 2017. We know our passion—but do we know our value?. 23(2), p.4.
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Appendices
Marketing Research
The questions that the focus group discussed for the Bike Rider manufacturing company are
given here:
Sr.
no.
Questions Period
1. When will we launch the product?
Initial phase2. What will be the quality of the bikes or parts?
3. What will be the price range?
4. Shall we proceed on this quality or will
change the design?
Ongoing phase5. What will be the color to make better
identification of product?
6. Are the customers satisfied?
7. Can we reach our customers?
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