MAN 2604-3D PRINTED BIKE-VU NGUYEN THUY DAN

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Feb 20, 2024

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HOMEWORK 1 - 3D PRINTED BIKE FROM AREVO STUDENT: VU NGUYEN THUY DAN BC ID: D21012901 COURSE: INTERNATIONAL BUSINESS LECTURER: MS. PHUONG CAO 3D PRINTED BIKE REPORTS 1.The business type of the company (start-up); Their vision & aspiration; The value proposition (unique selling points) (what they believed/claimed to be their competitive advantage) AREVO is a startup company in 3D printing technology, with the raw material being carbon fiber. The factory will manufacture 3D printers as well as provide software services and solutions for designing and manufacturing 3D-printed carbon fiber composite materials. It manufactures ultra-strong, lightweight composite parts for end-use applications using direct digital additive manufacturing technology. Their vision is to establish the world's largest 3D carbon fiber printing factory in Vietnam. They aim to install 3D printers as well as other new-generation carbon fiber 3D printing products to be produced in Vietnam in the future. Regarding their unique selling points, AREVO brings 3D printing technology into mass production by allowing fast design and manufacture of mass- produced parts and structures. Moreover, due to their lightweight and outstanding strength-to- weight ratios, carbon-fiber composites provide viable alternatives for certain metal parts and assemblies because they minimize material costs while boosting mechanical performance. In

addition, Arevo's 3D printing technology speeds up manufacturing by 50 percent while lowering expenses by 20 percent. At the same time, this new technological approach is much faster than the traditional printing method, which is 18 days and 18 months respectively. As a result of their technology, the company believes that it will undoubtedly lead to better product quality and significant savings on storage in many industries; to enable fast production of parts that need to be put into operation in the shortest possible timeframe; or to offer postponement services that increase customization options while also reducing delivery times. 2.What happened ? (How did they fail?);Reasons for failure from the company’s points of views. Since May 2023, Arevo Vietnam Limited Company has terminated all operations and investments in the country due to several reasons. Their project, Superstrata Bikes was also discontinued as a result of financial difficulty. This was because the unexpected extreme harshness of the Covid-19 pandemic has led the company to encounter a skilled labor shortage and to be unable to afford carbon materials due to inflated costs, which was difficult for them to comply with the designed standards. Moreover, this also caused the company to find it arduous to maintain its research and development team. 3. Your own analysis of their reasons for failure, using PESTLE environment analysis and/or any other factors that you find relevant to the case (do not repeat the reasons already cited by the company). The reason for the project's discontinuation, on the other side, was that its high price was not justified given the product quality and services supplied. Customers were dissatisfied with the project's reputation due to delivery delays and products that did not fulfill stated requirements. Those who ordered at a price of $3,000 voiced their disappointment when discovering the

discrepancy between the promised and delivered bikes. To be more specific, Superstrata promised the traditional model would weigh 7.5kg, yet most users have reported it weighing more than 11kg. Another point of frustration has been the safety concerns caused by the scientific errors in the design and inferior production of various components added to riders’ sense of insecurity. Therefore, the deficiency in the company's responsibility and the product quality given have a great contribution to the negative feedback towards the projects. Furthermore, the economic aspect is a critical component that has a direct impact on buyer decisions. The influence of COVID-19 on customers worldwide has significantly affected both their behavior and demand. People tended to prioritize low-cost goods during the period of growing inflation. Because quarantine prevents people from leaving, they were more hesitant to purchase transportation products, particularly high-priced ones. Superstrata is definitely not a bike for budget-conscious. Another consideration is the business's customization options. It provided customers with a vague idea of the things they would receive. As a result, even though these qualities distinguish the project from its competitors, they prohibit bike enthusiasts from purchasing the products. 4. What are takeaways from this case? Arevo's collapse stemmed from their misguided product strategy, supply chain management, and investor relations. First and foremost, Arevo should connect the design engineer and procurement department early in the product development process to examine the capabilities of these vendors to produce massive numbers in order to avoid carbon material shortages.Second, risk management is critical for standardized manufacturing by guaranteeing that each part has an alternate source to replace it if another supplier fails to deliver on time. Furthermore, it is not allowed for manufactures to compromise with an unqualified supplier due to time constraints.

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Regarding its product Although Superstrata's e-bike presents as a luxury product, the buyers have stated that its experience and deeper design don't exactly exude a luxurious, cohesive vibe. Therefore, unique characteristics of the product should be established to differentiate it from competitors. Despite making extensive efforts to engage in direct negotiations with the company in order to obtain resolutions and responsibility, the investor's complaints, however, were met with silence. Furthermore, some of them were promptly cut off from connection. This prompted them to accuse the products as fraudulent, exposing the corporation to increased scrutiny and criticism from investors and causing the project to be halted. These failures reflect the importance of maintaining quality, integrity and responding promptly to consumer concerns. Business leaders need to prioritize accountability as the technology industry grows, ensuring their ground- breaking innovations fulfill the promises made to customers and society at large. 5. What else did you learn from this case, particularly any new type of financing/legal concepts and risks that you learned from this case? Arevo’s negative situation reached its peak when people have condemned on its Superstrata Bikes crowdfunding project on Indiego platform, which received over half a million US dollars in funding from supportive users. Crowdfunding is defined as a method of raising funds to businesses and enterprises, allowing funndraisers to received funds from online channels. The benefits of crowdfunding brings to Arevo is undeniable in terms of raising capital and marketing efficiency. It connects the firm with a huge number of potential investors, each of whom contributes a small amount to help fund the project and raise the whole amount required. However, a bad crowdfunding approach will create a detrimental effect on the company's prestige, which is evidently shown in the case of Arevo when they were failed to meet the

expection of customers. In order to prevent reputational damage, it is critical for the business to deliver on their promised products with high commitment. In the event of unexpected challenges, transparency is required to maintain trust and credibility.

MAN 2604-3D PRINTED BIKE-VU NGUYEN THUY DAN

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