The External Environment
Competition
Though Trek is the leading brand for women’s bikes, there are some
major competitors in the field that pose a threat. The two main brand
competitors are Giant Bicycle and Specialized Bicycle Components.
Both of these companies offer a very similar fitness bicycle designed
for women. These competitors are further compared in the Strategy
Canvas on page 16.Lower priced bicycles dominate the cycling industry. Of the 18.7
million bicycles sold in the United States in 2012, 74% were sold in
big box stores. Due to the extremely low average price of these
bicycles compared to those sold in specialty bike shops, they
accounted for just 30% of the dollars spent in this industry by
consumers. This generic alternative is perhaps a stronger competitor
for this line of bikes than the brand competitors mentioned before.
Most casual cyclists will opt for a lower priced bike before spending
thousands of dollars on a more expensive brand.