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Shimano’s Challenge Case Solution & Answer

Shimano’s Challenge Case Solution

Porter Five forces Model

Competitive Rivalry

There are different competitors which are competing against Shimano. One of these competitors include Maeda industries, which is also based in Osaka. Shimano practically focuses on monopolistic deals and scale;whereas, the main focus of Maeda industries is on staying little to medium estimated and to spend significant time on specific parts.

The threat of new entrant

The threat of new entrants is quite high because of the low capital nature of the industry. There is no such limitation for the new entrants to enter into the market and prove themselves. Shimano dealt with such a situation by implementing decreased costs mechanism and using the latest technology parts to compete with its rivals.

Bargaining power of customer

Due to the higher competition; the bargaining power of the customers is quite high in the market. Shimano has dealt with this situation by maintaining its quality and making its consequent worth in the market.

Bargaining power of supplier

The bargaining power of suppliers for Shimano has decreased because of a few reasons. Some of them are their large numbers, geological spread, and expanded requirement for quality.

Threat of substitute

Since the bicycle industry has higher demand in the market; the threat of substitutes  is comparatively higher for Shimano.

Inference

While analyzing the market analyses and several forces model that affects Shimano; we have found that Shimano overcomes its challenges by establishing different strategies in the market while maintaining its focus on its core strengths, such as:

  • The focus on technology to create innovative and high-quality products.
  • Setting up an immediate line to clients and repeating its items on its customers’ requests
  • Transferring innovation between various product offerings and fields to generate profit from speculation and to deliver high value-added products.

All of these aforementioned factors are significant growth factors in driving Shimano’s success.

Question no 2

Power Meters

Power meters are the devices placed on the bicycle to find the power output of the rider. It allows you to see and improve the overall effect or power that you have to expend on the bike.

Shimano’s Power meter

Shimano introduced its power meter in 2017. Shimano’s power meter was built into FC-R9100-P cranks. Although the design of Shimano was quite well in terms of other meters because it was designed in a way that limits its damage possibility. But, when it comes to the market competency; Shimano’s entry was late when compared to other major competitors, such as: PIONEER.

If I were in charge of Shimano’s business; I would not enter the power market meter due to the following reasons:

  • The power meter supplied by other overseas manufacturers, such as: PIONEER, had already significant worth in the market. PIONEER power meters were designed in a very convalescent way that they were able to be fixed on both sides of the crank. In contrast, the power meter designed by Shimano was just able to be fixed on just one side of the crank. Another important feature was that the extra services or paddle efficiency were provided by the PIONEER, unlike Shimano. So, Shimano had less significant importance than PIONEER in the power meter market.
  • The power meter designed by Shimano was not widely used by professional riders of sports bikes.
  • Since in Japan, people usually designed custom-made bicycles for themselves; the power meters were not of that much importance or significance for them. Japanese people bought it very rarely…………………………

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