Making use of the Green Ocean Approach December a few, 2012 Trouble Statement B-cycle charges an annual fee in range of $50-100 for regular membership thereby making its giving uncompetitive against mass bicycle merchandizers just like Wal-Mart and Target who have sell bicycles at extremely discounted and cheap prices. Analysis Plan/Data Used/Key Assumptions Analysis Prepare: We will use the Green Ocean Approach Canvas & the 4 Actions Structure to assess measures B-Cycle should take to stay ahead of its red ocean bike store competitor.
Essential Assumptions: 1 ) Purchasing a bi-cycle is a discretionary spend 2 . There is a good market for cheaper alternatives to owning a bicycle Info: 1 . B-Cycle charges an annual fee in range of $50-100 (Source: B-Cycle website) for its membership while its usage fee is relatively more affordable in variety of $5 for 24 hours to $15 for 7-day rental 2 . Mass merchandizers like Wal-Mart & Goal dominate Bike Dealership & Retail market, which is a $6. 1 billion industry, with 75% market share (Source: IBIS Industry Report) 3. A mass merchandizer like Wal-Mart sells a comfort & cruiser cycle at a starting price of $69-88 4. B-cycle charges fees up to $1200 for loss and harm to its motorcycle (Source: B-cycle website) Info Analysis & Conclusions B-cycle annual regular membership fee are at same price point as the retail cost of a ease and comfort or cruiser bike marketed by WalMart which makes getting a bike a far more tempting idea as opposed to letting a bike.
B-Cycle does not give liability protection for motorcycle damage and customers may end up having to pay up to $1200 in damage fees which makes it very expensive idea compared to proudly owning one’s cycle. In order for B-Cycle offering to compete effectively against mass merchandizing bicycle dealership like Wal-Mart, B-Cycle should help to make its value proposition more desirable for customers to enable them to rent a motorcycle as opposed to investing in a bike. Tips to Managing Eliminate Membership rights Fees.
Create a loyalty plan for its people that rewards members based on usage. Decrease customer financial obligations against destruction or loss of a bike by providing protection software. Increase places across the country to gain footprint and market share inside the bike leasing segment.