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Peak Bikes:

A Summary

01

Khloee Huynh, Sebastian Skenderi, Audrey Wu, Selina Hach

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Product Line

2

Cliff Crusher

Mountain Bike

Baby Bike

Kid Bike

Gravel Goliath

Road Bike

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Introduction

Financial Result

  1. Shareholder Value
  2. Profit after Taxes
  3. D/E Ration
  4. Profit Margin
  5. Market Share
  6. Actual vs. Projected Results
  7. Net Income
  8. Competitive Advantages vs. Disadvantage

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Business

  1. Mission
  2. Strategy
  3. Promotion Piece

Lessons

  1. Lessons Learned
  2. Future Outlook

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Financial Results

4

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Shareholder Value

Life Cycle ($65.33) NiceBikes ($66.07)

$61.76

3rd place

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Profit after Taxes

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$5,198,412

Life Cycle ($6,577,887) NiceBikes ($6,721,191)

3rd place

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Debt to Equity Ratio

Six out of seven companies had a ratio of 0%

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Profit Margin

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12.7%

Net Income

Total Income

x 100

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Market Share

1st - Total market share

Kids segment: 18.4%

Ranked 1st

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Mountain segment: 20.3%

Ranked 1st

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Road segment: 21.1%

Ranked 2nd

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Market Share Continued

10

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Actual vs. Projected Results

Actual: $17,603,708

Projected: $22,688,023

→ Made less money than forecasted

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Net Income

approximately $5,000,000

The graph fluctuates depending on our decisions for that year

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Competitive Advantage

General control on bicycle market

Baby Bike: 18.4%

Cliff Crusher: 20.3%

Gravel Goliath: 21.1%

A loss of liquid assets

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When? At the beginning and middle of the simulation

Difficult to make the decisions we hoped to

Competitive Disadvantage

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Business

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Mission Statement

Efficient

High-quality

Affordable

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To provide a product that combines the best aspects of every bike into one.

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Efficiency index: 95

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1st place

tied with Life Cycle

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Quality Index: 91

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1st place

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Baby Bike was priced at $390

Cliff Crusher was priced at $730

Gravel Goliath was priced at $1,930

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Strategy

  • A high price point as well as a high level of quality

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  • Increase the amount of money spent on social media and search advertising

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  • Entice as many stores as possible, emphasis on sports stores

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1

Focus on the Mountain Bike�

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We generally persevered with our original strategy.

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We focused on

  • a high level of quality for all three bikes
  • increased the amount of money spent on advertising
  • persuaded stores to stock our products with high retail margins

We deviated from our strategy when deciding on bike prices because

  • low price point attracts more customers

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Promotional Piece

Website: It helps customer

  • Understand our products
  • Purchase our products
  • https://axyw10.wixsite.com/peakbikes

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Lessons

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Lessons Learned

Taking risks can pay off immensely

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Observe the actions of our competitors

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Compromise and Communication�

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Result: move up on the scoreboard or increase our shareholder value significantly

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Could have had a better cash flow earlier

Teamwork makes the dream work

  • Clearly communicate our opinions
  • Attend every meeting
  • Compromise on important & risky decisions

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Future Outlook

Utilize liquid assets�by reinvesting into the company

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Increase shareholder value as well as sales

  • repurchase as many shares as possible
  • invest into the bike qualities that our customers value

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Conclusion

Ranked 3rd out of all companies

Highest total market share

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2

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If anything we could change, it will be taking more risks earlier

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Thank you!

Q&A