G. Competitor and Market Access Profile
cubic centimeter; measure of motorcycle engine size
deutchemark; unit of currency used in Germany
electronic fuel injection; used in place of carburetors on newer motorcycles
European Union; a consortium of European countries formed to create a free trade zone and soon to share a common currency
Gross domestic product; a measure of a nation (or region's) economic output
motocross; an off-road track-based form of motorcycle competition
strengths, weaknesses, opportunities and threats; a type of analysis undertaken to compare a company to the market as a whole
Cannondale Corporation, a leading American manufacturer of high quality bicycles, recently introduced the MX400, a motocross motorcycle. Manufactured in the United States, the MX400 is the company's first motorized vehicle and represents a logical step in the company's evolution.
Cannondale already has a strong international presence with its bicycle line (which currently offers more than 60 models); it expects to build on this presence with its motorcycle as well. By using its wholly-owned European subsidiary to initially market the product and later to manufacture motorcycles, the company can gain quick access to European markets.
Initially, Cannondale should market the motocross product in Germany, and use success there to gain access to other European countries. Germany is the second largest motorcycle market in the world (second to the United States), and its economy has recently recovered to the point that it should be able to support the new product. No modifications are necessary to the product, which can be marketed in a similar fashion as Cannondale's bicycles: through a combination of racing sponsorships and traditional advertising targeting motocross "enthusiasts."
The purpose of this report is to propose a market entry strategy for Cannondale Corporation introducing a new product for sale i...