The executive report of Phoenix' s bikes

Executive Summary

2005

Executive Summary

Phoenix

Recommendations for future development

BOARD OF DIRECTORS

The company is in a good position enough to do well in future . The management team have made decisions that permitted the company to minimize the threats and continue its work at a high professional level . The opportunities for future development can 't be considered to be too various . The homogenous product , rather strong rivals , low level of differentiation -all these are factors that reduce the field of future possibilities for Phoenix . Nevertheless , there

are several ways the company could follow

According to the data of the financial state of the company it 's very difficult to replace Swift and occupy the first point among these 5 companies . Swift , being a powerful company with a good market share (bigger than Phoenix 's one ) and making the most of its value chain won 't loose its positions in the nearest future . Furthermore , in the situation of fixed prices , low level of differentiation and limited portfolio it 's practically impossible to speak about the abrupt increase of sales by choosing some revolutionary strategy . Of course , it 's possible to increase the profit of the company by finding cheaper suppliers but these also are looking for better profit and establish themselves the level of their prices . So this factor isn 't under the control of Phoenix . Consequently , we have to talk about the common act of all the components of company activities . The increase of the efficiency of each of them will lead to the growth of company 's sales at all what will find its result in growing of Phoenix 's market share . It will be good to start finding out the main ways for future development according to the Porter 's five forces

Competitors

The company being within the group of competitors has to pay much attention to their development . As we see , Phoenix is the second among four its competitors .Wool Cool and Ice Cold Penguins can 't be distinguished , actually , by successful position . In case of further loosing these companies their positions , Phoenix could acquire them getting by these a great deal of market share , spreading the quantity of its sales and using the funds of the acquired company . Though , it 's necessary to act in a very quick manner in this case because each of the leading companies would try to conquer the outsider first . So , a constant and attentive investigation of the market situation has to take place . Despite of these perspectives , this possibility isn 't very reliable as the company can 't develop its potential by awaiting the distraction of other companies

The joint venture also is a possible way . The union of two leading companies may have a lot of positive perspectives . Were united Phoenix with its 19 ,3 of the market and Swift with its 20 ,8 . A powerful company could appear . The brand names can remain unchangeable for example : SWIFT PHOENIX . The customer who knew before the product of these...