Baldwin Bicycles.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 3370A/B

:P Bicycle making company for almost 40 years. 10 models ranging from beginner to deluxe models. Hi-Valu Stores Inc. Chain of discount department stores in the Northwest. Sales volume growing to point that house product lines being added. Pros and Cons of distributing through Hi-Valu Pros Cons - A contract with Hi-Valu would give it - Never distributed through a access to many new locations as Hi-Valu department store. Use to toy shops and has numerous chain locations. bicycle stores. -Any bicycles not purchased within four - Baldwin Bicycles had image of being months would be purchased by Hi-Valu “top of the line” but not above average. -Would have to create a large inventory of bicycles (unknown demand) **-however, investment in storage not required! -Would have to sell at lower price than Hi-Valu wants to sell the challenger brand names models. This might help bicycles at lower prices than the name- gain more marketshare. brand bicycles… i.e. buy bikes at lower price because of the need to maintain ratios - Bicycle boom flatted out and current -Hi-Valu requires extensive operations running at 75%. Could use customization to its bikes. Wants the extra work maybe! different handlebars, seats fenders, etc. and the name challenger engraved.
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