Few CEOs successfully manage the development of their business from OEM outsourcer consumer marketers and branded manufacturers expert Tony Lo, CEO of Giant Manufacturing Co. Ltd., now the largest bicycle manufacturer in the world. In the mid-1980s produced tremendous over a million bicycles per year with the Giant brand to less than 15% of them by 2008, Giant bikes produced 6.4 million with 70% borne by the giant brand. And in 2010, the transition still in the process exp as CEO was Lo … Read more »

Few CEOs successfully manage the development of their business from OEM outsourcer consumer marketers and branded manufacturers expert Tony Lo, CEO of Giant Manufacturing Co. Ltd., now the largest bicycle manufacturer in the world. In the mid-1980s produced tremendous over a million bicycles per year with the Giant brand to less than 15% of them by 2008, Giant bikes produced 6.4 million with 70% borne by the giant brand. And in 2010, still in the process of transition experiments as CEO Lo with a new business model for women cyclists in Taiwan and the world was – uses some of the big lessons and challenging others. The case studied giant historical development of OEM outsourcer to brand manufacturers who rely heavily on forward integration giants in the construction of a world-class, global retail organization. Giants ability to understand the customer and move him / her market has both revenue growth and profitability (eg, the average selling prices in 2006, 2007, and 2008 were $ 325, $ 345 and $ 360 respectively) driven. This sets the stage for new challenge Lo: the realization that its products do not meet the needs of women clients (including especially his wife). As a result, Lo asked his CFO Bonnie Tu to the first all women’s bike shop in Taipei (owned by company, not the traditional retail organization) to open, and charged them with not only finding out the needs of women customers, but also the commission that they make a profit. “Because your clients are women, if you do not know how to sell them, you’re out of business period. So to experiment for survival,” says Lo. The event includes the audit of the company’s progressive integration into the trade, looking closely at the Liv / giant pilot and the surprising business model that developed it.
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from
Willy Shih,
Ethan S. Bernstein,
Maly Hout Bernstein,
Jyun-Cheng Wang,
Yi-Ling Wei
Source: Harvard Business School
15 pages.
Publication Date: Apr 16, 2010. Prod #: 610096-PDF-ENG
A giant among women HBR case solution

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