Bicicleta Limited International Expansion Report

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Table of Contents

Introduction
Target Customers
Ecosystem
Competitive Landscape
Testing Business Opportunity
Risks and Mitigation
Promoting the Solution
Business Model Summary
Final Recommendations
Conclusion

Introduction

The global business environment is changing rapidly due to technological advances, consumer needs, and rivalries arising from different players. Bicycle manufacturers are compelled to expand their operations, address challenges arising from environmental degradation, and consider powerful strategies to remain competitive and relevant in their respective sectors. Having succeeded locally within the past few decades, BICICLETA Limited has a new opportunity to invest in Denmark and eventually achieve its business goals. The new destination offers various attributes that make it a favorable place to start exporting bicycles, including the increasing number of people relying on bicycles. This decision is based on the fact that half of the country’s working population ride their bicycles to the workplace. Most of the completed studied have further revealed that the local citizens living in the capital, Copenhagen, cycle over 1.4 million kilometers every single day. The success of BICICLETA bicycles in this country would make the company a regional leader, thereby setting the stage for future expansions at the global level.

Target Customers

Denmark is one of the countries in Europe whereby many people prefer cycling. Its geographical attributes make the country favorable for cycling, such as the presence of appropriate terrains and cycling sideways. The government puts in place proper mechanisms for inclusion when it comes to the use of bicycles in public spaces. Over 50 percent of the country’s population relies on bicycles for movement. This knowledge means that BICICLETA Limited needs to focus on most of the citizens working in different cities and those relying on them for fitness purposes. These considerations indicate that BICICLETA has the potential to sell it bicycles to a population of around 3 million citizens in the selected country. The choice of this market or target customer is reasonable and capable of supporting the success of the business venture within the shortest time possible.

Ecosystem

The consideration of various partners and the move to strike alliances could make the business process more effective and successful. To achieve significant results and reduce chances of failure, this company needs to partner with Coh&Co Copenhagen. This company is famous in the country for being the leading manufacturer and designer of bicycles that meet the demands of more people. This model will reduce barriers to entry and ensure that the exported bicycles provide additional opportunities to the potential buyers. The company can go further to partner with the country’s health department or ministry. With the challenges associated with the ongoing coronavirus disease of 2019 (COVID-19), more people have embraced a wide range of physical activities to improve their overall health outcomes, including cycling. This alliance could ensure that more citizens who want to cycle select BICICLETA’s bicycles. The company does not need any form of acquisition at this time since it could be costly. With such choices and the presence of a competent team, chances are high that BICICLETA will find it easier to pursue and achieve the intended objectives.

Competitive Landscape

The current statistics reveal that BICICLETA stands a chance to encounter fierce competition in Denmark since a culture of cycling exists. For instance, around 90 percent of the citizens in this nation own bicycles. This rate is higher in comparison with the number of individuals who own cars in the country. Within the past two decades, Denmark has witnessed more companies producing and marketing bicycles to the locals. Some of the leading ones include Christina Bikes and Coh&Co Copenhagen. There are also organizations that have specialized in marketing luxury bicycles, such as Velorbis and the famous Biomega. Some of the investigations presented in the recent past have reported that Copenhagen has a total of 289 wholesale or bicycle shops. It is also evident that the number of companies manufacturing and selling bicycles has risen to 20. These aspects reveal that the selected market is competitive despite the opportunities it has to offer to BICICLETA Limited.

Testing Business Opportunity

The best way to test the effective of this choice is to analyze some of the anticipated competitors and how they have been performing in Denmark. For instance, the country witnesses around 500,000 bicycles being sold to different clients annually. As described earlier, 90 percent of the population own and use bicycles in Denmark. Additionally, Denmark and Italy were some of the leading countries in terms of bicycle sales and use. These countries rivaled the Netherlands, thereby becoming appropriate choices for doing business. The ongoing COVID-19 is another powerful reason explaining why more people would prefer bicycles than ever before. Experts acknowledge that such a trend has the potential to further bicycle sales much further. In Copenhagen, around 50 percent of employed individuals rely on bicycles to commute to and from their workplaces. The same trend is observed in some of the leading cities across the country. The existing policies and frameworks support the country’s bicycle culture. Consequently, the 20 companies operating in Denmark make considerable sales for their bicycles. With BICICLETA’s bicycles delivering comfort, convenience, and luxury to most of the current customers in the Netherlands, chances are high that the company will succeed in this foreign market.

Risks and Mitigation

Various risks are notable in Denmark that might disorient BICICLETA’s business investment in the foreign country. For instance, the current unrest in Ukraine and the subsequent wave of humanitarian crisis has the potential to affect Denmark. With more people shifting their focus on the nature of this issue, chances are high that the sales for bicycles could decline. The problem of terrorism has become a major issue in the wider European region. This problem calls for businesses to be prepared and take appropriate insurance cover for their operations against the malpractice. The threat of intellectual property (IP) remains critical in Denmark since it is home to many bicycle manufacturing companies. This knowledge should compel BICICLETA to patent its models and designs to ensure that they are not copied or replicated. The country is associated with economic and political stability. However, unrests could emerge as more people seek fair working conditions and political approaches to address their grievances. This company could mitigate this risk by identifying regions and streets that are accessible to customers but less likely to witness riots. These measures are evidence-abased and capable of ensuring that the organization achieves the much needed business aims in Denmark.

Promoting the Solution

The people of Denmark form the primary target market for BICICLETA as it plans to invest in this foreign country. With the above risks capable of affecting performance, there is a need to have proper mechanisms in place that resonate with the demands of the intended buyers. This approach is capable of supporting the establishment of the relevant user base. The marketers would begin by gathering information from the population to understand how they purchase and the features they consider before acquiring them. The professionals will launch additional campaigns in partnership with the government and Coh&Co Copenhagen. This strategy will offer a powerful model that sensitizes the people about the available bicycles while showcasing their benefits. The leaders at this company need to consider competitive prices that are affordable and capable of attracting more possible clients. Proper branding and marketing approaches relying on the use of successful cyclists and athletes in Denmark and across Europe could help promote the solution within the selected target market. Continuous improvements would be required depending on the recorded insights and the changing expectations of the customers.

Business Model Summary

BICICLETA requires an effective exportation strategy that could help the company achieve positive results in a timely manner. As described earlier, this organization stands a chance to benefit from a partnership venture with a successful company in the Danish market. This approach has the potential to reduce chances of failure and overcoming most of the risks identified above. The effort would allow most of the professionals from both companies to found a common ground and consider the best approaches to market their bicycles more effectively and successfully in the market. For BICICLETA, the value proposition is that the company intends to deliver high-quality bicycles that deliver safety, convenience, and comfort to the user. The customers should also rest assured that the product delivers value and excellence while supporting them to achieve their goals in life.

To achieve positive results faster, BICICLETA would need competent personnel to complete the marketing roles. An expatriate would be needed to support the company’s investment, be involved in the proposed partnership, and solve some of the emerging challenges. There is a need for this company to involve legal professionals to identify and address business requirements in the country. Adequate finances would be needed for promoting the product, sensitizing more people about the offered features, and meeting operational expenses. The use of a proper model, competent managers and marketers, proper pricing, and product designs are the major capabilities capable of delivering the much needed outcomes. In terms of costs, the company would require around 10 million pounds to support the process. The revenue model is designed in such a way that every bicycle sold could present around 15 percent profits to the company.

Final Recommendations

The outlined aspects offer strong reasons for this company to expand internationally. Denmark is a favorite destination due to the prevailing cycling culture. The success of this venture, however, depends on the steps the involved leaders put into consideration. The first recommendable step is to have a detailed review of BICICLETA Limited and examine its capacity to achieve the intended expansion aims. The formulation of a competent team is critical that will develop the foreign entry strategy. The second step or approach is the development of an effective market entry model. Key issues include setting clear goals and aims, completing a preliminary research on market share, engaging in value proposition, and analyzing existing risks or barriers to entry. This step would allow the team to identify partnership is the best approach for entry into the Danish market. The company would then consider insurance needs and financing plans for making the venture successful.

The third and final step of the proposed model is the development of an effective marketing plan once operations are launched in Denmark. The team would need to describe the characteristics of the customers, cities for starting operations, cultural attributes of the people of Denmark, and regulations influencing business activities. The company can consider branding, packaging, and pricing attributes for the bicycles. Specifically, the product needs to be attractive and offered at a competitive price. The identification of the existing business practices would be essential to support the approach and ensure that desirable results are eventually recorded. The team would formulate a logistics plan capable of explaining how transportation and storage needs would be met.

A promotional plan is necessary to launch the exercise effectively. For example, the company can launch a local website in Denmark and liaise with the identified partners for effective performance. Social media platforms need to be integrated to help deliver results. Finally, the team would need to engage in continuous monitoring using various metrics, including sales, customer responses, brand acceptability, and complaints. Such attributes will help the team improve operations continuously and eventually ensure that positive results are recorded.

Conclusion

This report has identified Denmark as a favorite market for BICICLETA to launch international operations. The country promotes cycling with 90 percent of the population having bicycles. A detailed and practical plan will help match the company’s strengths with the market demands in the foreign country. The recommended model is reasonable, capable of addressing possible risks, and sustainable. The considerations of all the outlined aspects with ensure that BICICLETA Limited attracts more possible buyers and eventually realizes the intended business aims.

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