Schwinn Bikes: Case Analysis

Jennifer Bolyard

Instructor Turrentine

MBA 553

2 August 2015

Case Analysis: Schwinn Bicycles

What are the strengths and weaknesses of Schwinn?

        The Schwinn brand has been producing a durable quality bikes for over 100 years. This has allowed the company to become a house hold name. Schwinn was once the most popular brand of bikes, every kid wanted one. Recently, Schwinn management has been overhauled. This has allow for improvements in technology. Schwinn is striving to make high end, high tech bikes along with the traditional type bikes. The company has embraced the mountain biking trend as well. Today, Schwinn offers a wide variety of bikes. It is easy any type of rider to find a Schwinn bike to use.

        While Schwinn has been around for over 100 years, those years are not without its faults. Schwinn largest weakness is the old management’s way of doing things. This old management ignored the emerging mountain bike tend in the 1980s. This set back Schwinn and its backs, allowing other companies to take over. Due to this, the company found itself bankrupt. This has a huge impact on the success of the company. Today, the majority of the bikes are made in the United State, however, Schwinn bikes are produced in Asia. This, too, has hurt the company. Mountain biking is a United States sport, many Americans want to buy American made products. Schwinn is not an American made product. Finally, Schwinn in the past has not embrace the technology advance in bike production. This has allowed for companies like Trek and Cannondale to surpass Schwinn.  

What opportunities and threats does the company fact?

        Schwinn has been given a unique opportunity that most companies do not get, that is to start over. In 1992, when Schwinn found itself in bankruptcy court, they were able to reevaluate and embrace the change. Schwinn is able to improve the technology of the bikes, create more models, and embrace the mountain bike trend. Improving the product line is the biggest and best opportunity for Schwinn. The company is able to redefine itself and prove that it can make it in this market. Schwinn would greatly benefit from the purchase of a respected US manufacturer, such as Yeti. Although, I would encourage Schwinn to maintain international manufacturers, as there are great opportunity for Schwinn to develop a strong marketplace for bike internationally.

        Unfortunately, Schwinn is no longer a respected name in the bike community. Schwinn had a great run but has a lot of work to do to make of for its downfalls. The largest downfall is the mountain bike. Schwinn should have been leading the charge with mountain bikes. Embracing emerging technology to improve biking. In addition, Schwinn has hurt itself by not producing in the United State while its competitors are.  Schwinn’s competitors have established creditability within the market, while Schwinn has failed.