Bicycle
Product Production
Although Bicycle production has grown to well over one hundred million bicycles in the year 2000, there are still specialty markets that have not been saturated. Couple that with the fact that there are still many nations in the world where citizens cannot afford to purchase automobiles, and a potential for new products becomes more obvious. With these factors in mind, this report will present reasons that will justify producing specialty bicycles in the Daniel Manufacturing Company's spare warehouse space.
Competition
It is obvious that world production is up. Currently, the largest producer of bicycles in the world is the nation of China. "China manufactured a record 52 million bicycles in 2000 -- over half the world total. Nearly two thirds of these were exported, with 17 million going to the United States." (Larsen, 2002)
The European Union's new found togetherness makes it seem like a large producer of bicycles; however, when seen as individual nation states, only Germany was producing more than ten million bicycles in the year 2000. India also produced a little more than ten million bicycles. The next closest producer was Italy who runs second out of Europe having produced approximately 3 million bicycles.
Because the United States is such a giant importer of manufactured bicycles, the nation only produced a little over one million bikes. As late as 1995, the United States used to produce nearly nine million bicycles annually but economic restructuring and foreign competition has brought the Unites States production numbers down to the current lows.
World Sales
The United States has well over forty million cyclists which currently makes it the number one market in the world. The problem with those figures is that the United States is currently importing ninety seven percent of the bicycles sold to those millions. Off shore locations like the Virgin Islands, Haiti and Puerto Rico are all bicycle utilizing nations due to island locale and convenience.
One must also consider the North American Free Trade Agreement (NAFTA). This free trade pact opens the doors to both Mexico and Canada. Additionally, Canada has trading rights with...
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