(1) I have a case study of 2 pages and one question is provided that needs to be solved by reading and analyzing the case study.Kindly go analyze the case study and answer the following question:Highlight the key elements of Pakistan’s Bicycle Industry. What are the current challenges of the bicycle industry in Pakistan? Note: The case study is attached as 2 pictures. Sohrab finding its way to survive in a rapidly changing businessenvironmentohrab is not just a cultural icon, but livelihoods of many people depend on their access to it.In a country where income is low and pollution generated by automobiles is high, it would beecstatic to see a renewal of the bike culture in Pakistan. As we see the old-fashioned Sohrabbicycles around us and wonder how this industry is preparing to meet the challenges of the 21stcentury.Sohrab CyclesSohrab bicycles have been a source of inspiration for generations. The company's initial single-speed roadster was introduced in the 1960s, and it remains one of their most popular models today.50 years later! Sohrab replaced this classic with other types, including mountain bikes, BMX stylebikes. Its name is synonymous with bicycle in Pakistan. This bicycle is built from a sturdy metalframe, is often painted black, and has a metal flat plate at the back that has been used over time forall kinds of purposes. When it comes to great quality no one can do better than Sohrab.BackgroundThe company began in 1952 with a core of traders in Lahore, following a foreign exchange crisiswhich severely restricted imports in Pakistan. The traders saw an opportunity to domesticallyproduce and sell bicycles, and consequently founded Sohrab on 8 September 1953. It initially had22 members and produced 5 bicycles a day. It now has 228 members and produces approximately2000 bicycles a day.As stated above the society was registered to provide mutual help and benefits to its foundingmembers. According to the rules of the society, its controlling powers lay with its general body.Since the Directors also happen to be the owners, they take decisions for the betterment of thesociety with full sense of responsibility.CBCCInitially, only a few spare parts of bicycles were manufactured locally and about 90% spare partswere import from abroad. With the passage of time, the situation started improving and todayalmost 98% bicycles spare parts are being manufactured in house or through vendors.A Glimpse into the Pakistani Bicycle IndustryAt that time of Independence in 1947, there was no bicycle factory in Pakistan. Imported bikeswere made available and NILA GUMBAD market in Lahore became a hub for bicycle sales. In1952, a scarcity of foreign exchange reserves prompted a thorough examination of domesticproduction. A cooperative society was established for bicycle manufacturing in Pakistan.Almost 98% of spare parts of bicycles are now being manufactured in Pakistan or through vendors.Today almost 98% of bicycle spare parts are being manufactured locally.Pakistan's bicycle industry has a production capacity of 1.45 million bicycles per year. Accordingto different published sources, there are 300 bicycle vendors in Pakistan. These vendors buy rawmaterial worth Rs49 million and after value addition sell it on to the manufacturers for Rs98million. The 300 vendors supply to 7 big Manufacturers and 20 unorganized small firms. TheseManufacturers supply a further of Rs1.32 billion worth of new bicycles and Rs100 million worthreplacement parts of bicycles to the retail. The demand for Chinese cycles is extremely high, owingto the affordable prices and fashionable designs that appeal to clients. Chinese bicycles havesuperior finishing. Some people are concerned with money, while others are concerned withquality.Sohrab Target MarketSohrab's primary market is in mainly remote and rural population areas of Pakistan where themotorbikes and cars are still not affordable to some people. A few big city people ride the bicycleson the city streets for exercise and have formed bicycling clubs for themselves.Challenges of the 21st centuryBicycling is becoming more than just a hobby or a simple mode-of-transport in many parts of theworld. It has also become a serious sport that has seen rapid technological innovations. From theuse of continuously variable transmissions in place of hub and spoke gear sets, to the use of ultra-light weight materials, the bikes of today are remarkably improved over the last generation ofbikes.Despite the nostalgia associated with the Sohrab, Pakistani bicycle industry is under serious threatfrom regional competition. China, for example, is exporter of high quality, cheap bikes whereasPakistani industry is harely able to meet local demands. As free trade develops in the region, boththe government and producers stand to lose.A Sohrab can still have the nostalgic shape and look, but has it evolved over the past few decadesto incorporate the innovations in design, ergonomics, durability, and efficiency"? CBCCWas it a Marketing Failure?Product improvement or innovation is the key to the success for any brand. Those brands thatstayed on making the one product that is their competitive edge and as a result, they missed out onreaching the other segments who acknowledged the prestigious status of that brand as the leaderin producing high-quality products at a very low cost but couldn't adopt the brand because it onlyproduced one type of product.The market for bicycles in Pakistan is very diverse. Local brands did not take advantage of thecompetition and missed out on catering to different target markets like kids' cycles, enthusiastcycles such as mountain bikes, rally bikes, cycles with gears and innovative features, and premiumcycles because of their vision of making cheap priced yet durable cycles for poor Pakistanis.Introducing new logos and designs always shows brand's commitment to the adaptability.Successful brands tried to market themselves as a brand that is bigger than just making low-pricedcycles. Those who kept on making low-cost cycles for a long time and not try to change their brandimage of an affordable brand, and it is a reason why they never venture into other markets.Sohrab cycle once was the No.1 cycle for Pakistani buyers and still today it has many buyers.Sohrab's quality speaks for itself and that's the reason still today despite many challenges buyerslove it. Sohrab rely on the mouth of words strategy and yes it worked for them for many years.that's also a reason Sohrab cycle didn't do any planned marketing strategy to introduce in themarket neither did they do marketing to remind of the bicycle when it market was falling. It becameNo. 1 by taking an advantage of in 1952 shortage of foreign exchange which started creatingdifficulties for the importers. At that time there was no other manufacturer of cycle in Pakistan.Due to the advent of technology, and the availability of cheaper motorbikes, bicycles as a meansof transport were abolished and only used for enthusiast purposes. The Sohrab cycles saw adownfall in their sales of the cycle. They had to move into making bodies for auto rickshaws,commercial bikes and wheelchairs because they had no equity in the mind of customers becauseof their singular cycle offered in the past. They could have had a competitive edge against theChinese-made cycles for kids and enthusiasts if they ventured into making products for otherssegments earlier. They did not innovate and didn't foresee the future. By the time it happened, itwas too late for them.Changing TechnologySuccessful brands are very adaptive to the change in technology and trends. Here comes theChinese made bicycle which was the great challenge to the Sohrab cycle as, the Chinese basedmade cycle was light in weight and it cost cheaper than the most of local brands. Sohrab producesthe bicycles with great quality which lasts years. In the current situation customers are pricesensitive, so due to the price sensitivity many good brands loose it's market. Chinese made cyclewere very low in price which gear set included in it and use of ultra-light weight materials thatmakes that bicycle light weight and the quality is ok. The import of the fancy cycles from ChinaCBCChas badly affected the bicycle manufacturers here. Failure to adapt the change and lack of research& Development about the product could lead to brand failure.Conclusive NoteHuman resource also has a vital role in the development and success of the company. Neglectingits importance could damage the brand overall performance. Following the traditional ways ofmanaging Human resource practices which applied throughout the operations of any company.These types of operations are cost-based operations, where the job of the workers isstraightforward; to assemble the mass-produced Sohrab cycles. Without the proper mechanism ofHuman resource Decisions are made at top level usually the owners, they take decisions and decidethe fate of the company regardless of if executives are capable or not.There was no research and development department with investments, and the employees werenot empowered to give input or suggestions on how the company should operate or innovate. Therewas a hierarchy, everyone had a fixed job, and the employees had no autonomy, which resulted ina lack of motivation for the employees, and no idea generation and groupthinks for the companyto improve on its processes and products and innovation of any kind.

Management Management is the process of Planning, Organizing, Staffing, Directing, and Controlling…

Answered: I have a case study of 2 pages and one…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

(1) I have a case study of 2 pages and one question is provided that needs to be solved by reading and analyzing the case study.

Kindly go analyze the case study and answer the following question:

Highlight the key elements of Pakistan’s Bicycle Industry. What are the current challenges of the bicycle industry in Pakistan?

Note: The case study is attached as 2 pictures.

Sohrab finding its way to survive in a rapidly changing business
environment
ohrab is not just a cultural icon, but livelihoods of many people depend on their access to it.
In a country where income is low and pollution generated by automobiles is high, it would be
ecstatic to see a renewal of the bike culture in Pakistan. As we see the old-fashioned Sohrab
bicycles around us and wonder how this industry is preparing to meet the challenges of the 21st
century.
Sohrab Cycles
Sohrab bicycles have been a source of inspiration for generations. The company's initial single-
speed roadster was introduced in the 1960s, and it remains one of their most popular models today.
50 years later! Sohrab replaced this classic with other types, including mountain bikes, BMX style
bikes. Its name is synonymous with bicycle in Pakistan. This bicycle is built from a sturdy metal
frame, is often painted black, and has a metal flat plate at the back that has been used over time for
all kinds of purposes. When it comes to great quality no one can do better than Sohrab.
Background
The company began in 1952 with a core of traders in Lahore, following a foreign exchange crisis
which severely restricted imports in Pakistan. The traders saw an opportunity to domestically
produce and sell bicycles, and consequently founded Sohrab on 8 September 1953. It initially had
22 members and produced 5 bicycles a day. It now has 228 members and produces approximately
2000 bicycles a day.
As stated above the society was registered to provide mutual help and benefits to its founding
members. According to the rules of the society, its controlling powers lay with its general body.
Since the Directors also happen to be the owners, they take decisions for the betterment of the
society with full sense of responsibility.
CBCC
Initially, only a few spare parts of bicycles were manufactured locally and about 90% spare parts
were import from abroad. With the passage of time, the situation started improving and today
almost 98% bicycles spare parts are being manufactured in house or through vendors.
A Glimpse into the Pakistani Bicycle Industry
At that time of Independence in 1947, there was no bicycle factory in Pakistan. Imported bikes
were made available and NILA GUMBAD market in Lahore became a hub for bicycle sales. In
1952, a scarcity of foreign exchange reserves prompted a thorough examination of domestic
production. A cooperative society was established for bicycle manufacturing in Pakistan.
Almost 98% of spare parts of bicycles are now being manufactured in Pakistan or through vendors.
Today almost 98% of bicycle spare parts are being manufactured locally.
Pakistan's bicycle industry has a production capacity of 1.45 million bicycles per year. According
to different published sources, there are 300 bicycle vendors in Pakistan. These vendors buy raw
material worth Rs49 million and after value addition sell it on to the manufacturers for Rs98
million. The 300 vendors supply to 7 big Manufacturers and 20 unorganized small firms. These
Manufacturers supply a further of Rs1.32 billion worth of new bicycles and Rs100 million worth
replacement parts of bicycles to the retail. The demand for Chinese cycles is extremely high, owing
to the affordable prices and fashionable designs that appeal to clients. Chinese bicycles have
superior finishing. Some people are concerned with money, while others are concerned with
quality.
Sohrab Target Market
Sohrab's primary market is in mainly remote and rural population areas of Pakistan where the
motorbikes and cars are still not affordable to some people. A few big city people ride the bicycles
on the city streets for exercise and have formed bicycling clubs for themselves.
Challenges of the 21st century
Bicycling is becoming more than just a hobby or a simple mode-of-transport in many parts of the
world. It has also become a serious sport that has seen rapid technological innovations. From the
use of continuously variable transmissions in place of hub and spoke gear sets, to the use of ultra-
light weight materials, the bikes of today are remarkably improved over the last generation of
bikes.
Despite the nostalgia associated with the Sohrab, Pakistani bicycle industry is under serious threat
from regional competition. China, for example, is exporter of high quality, cheap bikes whereas
Pakistani industry is harely able to meet local demands. As free trade develops in the region, both
the government and producers stand to lose.
A Sohrab can still have the nostalgic shape and look, but has it evolved over the past few decades
to incorporate the innovations in design, ergonomics, durability, and efficiency"?

Transcribed Image Text:CBCC Was it a Marketing Failure? Product improvement or innovation is the key to the success for any brand. Those brands that stayed on making the one product that is their competitive edge and as a result, they missed out on reaching the other segments who acknowledged the prestigious status of that brand as the leader in producing high-quality products at a very low cost but couldn't adopt the brand because it only produced one type of product. The market for bicycles in Pakistan is very diverse. Local brands did not take advantage of the competition and missed out on catering to different target markets like kids' cycles, enthusiast cycles such as mountain bikes, rally bikes, cycles with gears and innovative features, and premium cycles because of their vision of making cheap priced yet durable cycles for poor Pakistanis. Introducing new logos and designs always shows brand's commitment to the adaptability. Successful brands tried to market themselves as a brand that is bigger than just making low-priced cycles. Those who kept on making low-cost cycles for a long time and not try to change their brand image of an affordable brand, and it is a reason why they never venture into other markets. Sohrab cycle once was the No.1 cycle for Pakistani buyers and still today it has many buyers. Sohrab's quality speaks for itself and that's the reason still today despite many challenges buyers love it. Sohrab rely on the mouth of words strategy and yes it worked for them for many years. that's also a reason Sohrab cycle didn't do any planned marketing strategy to introduce in the market neither did they do marketing to remind of the bicycle when it market was falling. It became No. 1 by taking an advantage of in 1952 shortage of foreign exchange which started creating difficulties for the importers. At that time there was no other manufacturer of cycle in Pakistan. Due to the advent of technology, and the availability of cheaper motorbikes, bicycles as a means of transport were abolished and only used for enthusiast purposes. The Sohrab cycles saw a downfall in their sales of the cycle. They had to move into making bodies for auto rickshaws, commercial bikes and wheelchairs because they had no equity in the mind of customers because of their singular cycle offered in the past. They could have had a competitive edge against the Chinese-made cycles for kids and enthusiasts if they ventured into making products for others segments earlier. They did not innovate and didn't foresee the future. By the time it happened, it was too late for them. Changing Technology Successful brands are very adaptive to the change in technology and trends. Here comes the Chinese made bicycle which was the great challenge to the Sohrab cycle as, the Chinese based made cycle was light in weight and it cost cheaper than the most of local brands. Sohrab produces the bicycles with great quality which lasts years. In the current situation customers are price sensitive, so due to the price sensitivity many good brands loose it's market. Chinese made cycle were very low in price which gear set included in it and use of ultra-light weight materials that makes that bicycle light weight and the quality is ok. The import of the fancy cycles from China CBCC has badly affected the bicycle manufacturers here. Failure to adapt the change and lack of research & Development about the product could lead to brand failure. Conclusive Note Human resource also has a vital role in the development and success of the company. Neglecting its importance could damage the brand overall performance. Following the traditional ways of managing Human resource practices which applied throughout the operations of any company. These types of operations are cost-based operations, where the job of the workers is straightforward; to assemble the mass-produced Sohrab cycles. Without the proper mechanism of Human resource Decisions are made at top level usually the owners, they take decisions and decide the fate of the company regardless of if executives are capable or not. There was no research and development department with investments, and the employees were not empowered to give input or suggestions on how the company should operate or innovate. There was a hierarchy, everyone had a fixed job, and the employees had no autonomy, which resulted in a lack of motivation for the employees, and no idea generation and groupthinks for the company to improve on its processes and products and innovation of any kind.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here