BSP Final Project New

TI Cycle Of India Ltd
Table of Contents
Acknowledgments ..................................................................................................................... .3 Executive Summar.Error! Bookmark not defined.4
Section NO.1
1)Introduction of Indian Bicycle Industry.05 2) Trends......06 3) Industry Product Scope..................................07 4) PEST Analysis.....08 5) Porters 5 Force analysis.10 6) KSF..19 7) Industry Life Cycle............20
Section No.2
8) corporate Profile....21
a) Murugappa Group b)Tube Investment of India 9) TI cycle of India a) b) Brands of TI Product Profile . . .. .. . . . . 21 . 23 ..27 .29 29 .31 32 34 ..35
10) Product life cycle 11) SWOT Analysis a) IFE b) EFE
Shahbaz,Khubaib,Umair
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TI Cycle Of India Ltd 12) Competitor Analysis .. .. 37
13) Strategic group Map 14) CPM
. 40 42
Section No.3
15) Value chain of TI .44
Section No.4
16) Mcgahan Framework Model 17) Ansoof Model 18) Grand Strategic matrix 19) Diversification strategy 20) Integration strategy 21) Generic strategy 22) IE matrix 23) Selecting strategy 24) Distribution network of TI 25) Future strategic option . .. .. .51 ..51 52 .53 .54 55 ..56 .. 57 58 59
Section No.5
26) Financial Analysis . 59
27) Reasoning for related diversification66 28)Conclusion........................................................................................................................... 66 29) References...67 30) appendix..68
a)
The History of Bicycle Industry....68
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Acknowledgments
We bow our head in gratitude to almighty Allah, who blessed us with the ability and energy to complete this work. We were asked to work on this project of Business strategy and polices. We want to thank my respected teacher DR Sarwar Azher, who gave us this opportunity to understand & learn field work of business strategy We also want to thank our class fellows and friends especially Asif who has guided us in completing this project.
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EXECUTIVE SUMMARY The Murugappa group, headquartered in Chennai, India, is a $1.5 billion conglomerate with interest in engineering, abrasives, sanitary ware, fertilizers, finance, bio-products and plantations. It has 29 companies under its umbrella; eight are listed and actively handed on the national stock exchange and the Bombay stock exchange. Together, they have over 28,000 employees. TI is a leading player in bicycles segment with 30 percent market share by virtue of its brand equity, product development capability and proximity to the markets. The company reported a turnover of RS. 1563.39cror and profit after tax of Rs. 98.55cror in 2004-2005 TI introduced many brand as BSA, Hercules,Philips,and recently introduce carbon made bicycle with the name of Montra brand.
In this report we use different model as Ansoof model, Mcgrham model, and strategies like generic, integrated, diversification strategies, and also use matrix as Grand matrix, IE matrix to finalize the strategy for TI cycle of India. In this project we critically examine the case study and research on different websites to find out the information. We also analyze the TI strategies which they are using. We give recommendation on the base of calculation and financial analysis give suggestion about future strategy.
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Section No1
1) Introduction of Indian Bicycle Industry:
y India produces approximately 10% of the world annual bicycle production, which is estimated at 125 Million units. y The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units are a government demand for the various welfare schemes. Exports out of India are largely to Africa and the less developed economies and negligible to western markets. y Before 1974 there was only one bicycle manufacturing unit in India making approximately 400 bicycle. y In 1951 two units with financial and technical support of well known British manufacturer. y y Order weare of 2 million and expected to grow to 9 to 3 million a year by 1975. India was dominated by 18 large and medium size units.industry has subsential growth and install capacity 1.37 million in the large sector and 0.75 million in small sector. y The utilization capacity was low in small sector 12-13%.capacity was concentrated in the North both in large and small sectors. y With an annual turnover of more than 12 million bicycles, the bicycle industry is one of the most established industries in India. y y Second largest bicycle manufacturer in the world, next only to China. More than 90 per cent of the bicycle production in India comes from four bicycle companies. Major players with their per cent share in this sector are Hero Cycles 35%,
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Atlas Cycles 24%, TI Cycles 18% and Avon 15%. Hero Cycles has grown to become the worlds largest bicycle maker followed by Atlas Cycles.
(http://www.herocycles.com/indian.php)
2) Trends:
!950-1975 The north Indian market showed definite trends in recent year that a large percentage of women and girls had taken to cycling. Cycling ahs become a social acceptable activity for women. Low awareness of cycling as a sport in India Only mode of cheap personal transportation Cycle industry is facing increasing competition in those years. Typically rural and semi urban consumer depend on the advice of other cyclist. Demand of cycles is increased with festivals like Diwali, puja, marriage seasons Licensed by the government Huge demand exist in Standard segment
After 1980s: Encouraging trend in usage of cycle for health and leisure activities A declining market of standard bicycle and increase in special bicycles Competition from China and other low-cost manufacturing destinations Rising prices of raw material such as steel and rubber Multiple product variations (Style, Size, Color, Material, Trendy) Sales in the childrens segment, ladies, school and college students were growing at a speedy pace Rise of Purchasing Power (Increase in spending power/Income levels)
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Demand exists in Special segment People prefer motor cycle as compare to bicycle as a fast mode of transportation people prefer public transport system as compare to go on bicycle because of limited time. 3) Industry products scope: The bicycle industry can broadly be defined as the industry that is concerned with the bicycles and cycling. It includes bicycle manufacturers, parts or components manufacturers, and accessory manufacturers related to the bicycles. It can also include distributors, retailers, bicycle organizations, bicycle event promoters, and bicycle related service providers. The industry, with the changing environment, also caters to the needs of health, gymnasium and leisure segments. The size of the Indian bicycle industry stands at US $1.2 billion. The number of units (finished bicycles including all segments) produced is around 12 million, according to an industry source. Of this, the number of units exported annually is about two to three million, which points to a huge demand in the domestic market. According to figures from the Engineering Exports Promotion Council, in 2007-08 India exported bicycles and components worth US $185.42 million. India has seen a tremendous increase in the number of bicycle manufacturers and bicycle exporters in the recent past. Today, the Indian bicycle manufacturing and bicycle spares industry is well accepted and is also widely recognized for its quality standards in international markets. Most bicycle components, spares and bicycle accessories in India, except for free wheels and single piece bicycle hubs, are manufactured by the Small Scale Sector (SSIs), while the large scale units are permitted to manufacture bicycle frames, chains and rims for captive consumption. The manufacturing and export of complete bicycles falls within the organized sector. The Indian bicycle industry is currently in the midst of making endeavors for enhanced and increased bicycle exports since the scope for export of Indian manufactured bicycles in the international market is significant. As per public reports the present level of exports falls within the range of Rs. 150 crores.6 This includes Bicycles, bicycle spare parts and bicycle accessories.
India produces approximately 10% of the world annual bicycle production, which is estimated at 125 Million units. The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units are a government demand for the various welfare schemes. Exports out of India are largely to Africa and the less developed economies and negligible to western markets.
Major players in the domestic bicycle industry are Hero Cycles, TI, Avon & Atlas with 48%, 27% & 14% & 10% of share of volume respectively. (page# 37 ) Most cycles manufactured & sold in India are in the low price bracket of Rs. 2,500 to Rs. 5,000.
The market for the premium or the lifestyle bikes targeted towards the lifestyle consumer is just about
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TI Cycle Of India Ltd emerging. The definition of high end bikes itself is changing. Earlier the high-end bikes were considered as those selling between Rs. 5,000 to 8,000. However now with global brands moving into the country this definition is also changing with price-points starting from Rs.15,000 to as high as a few lakhs. The demand for these cycles at this stage is very limited but is expected to grow at a frenetic pace in future. (http://www.avoncycles.com/gents-bicycle.asp)
4) Political Factors:
Pest Analysis
Manufacturers should not increase the prices without prior approval of the government. Manufacturers are asked to freeze prices of their cycle( without saddles or accessories) at the level of their F.O.R. It was also suggest that the distributor margin cover commission agent, sole distributors and the dealers. Distribution margin did not increase 15% of sale. All price revisions would be cleared with the government for industry safety. The cost audit and voluntary control were not applicable to the small scale sector only the large integrated manufacturers were covered by it. The sixth Tariff commission recommended that Protection need not be extended beyond December 31,1963
Economic Factors:
Small scale sector contribution approximately 8 to 10% of the total production which is 150,000- 200000 units. India produces approximately 10% of the world annual bicycle production, which is estimated at 125 Million units. (Article Source: http://EzineArticles.com/4392039)
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This is significant in view of the growing economy in India with increasing per capita income especially for rural India is projected to grow by 17.3 percent to Rs 54,527 in 2010-11 from Rs 46,492 in the year-ago period, according to the official data released today.
The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units are a government demand for the various welfare schemes.
Social Factors:
Cycling had become a socially acceptable activity for women because of it demand of ladies model increased. The rural consumers bought cycle from urban market or bought them second hand from an urban or semi urban user it was a common trend in rural consumers. Sudden burst demand on festival like Diwali, Puja, Harvest,and marriage seasons. The social trend in India was used cycles sold to the rural consumer. The rural consumer bought cycle either in the urban market or The typically a rural or semi urban consumer depended on the advice of other cyclist. For example the milkman before buying the cycle looked around the brands used by the other milkmen. The fitter mechanics employed by the large dealers and as well as self employed cycle repair shop men had major influence in decision making of the buyers.
Technological Factors:
Lastly, the technology also plays an important role in the bicycle industry. During the 1980s and 1990s much of the growth increase can be attributed to new technologies such as the use of new light weight materials in the frame of bicycles which greatly increased performance. Also shift from Dip Brazing technology to Welding to reduce the
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overall cost of the production. The technology also results in the customization rather than standardization of the cycles. In 1960-62 India had the technology maturity to manufacture quality cycle with out external help. Now with help of new technology Magnesium frames are used in production of cycles with reason able price. In cycle industry carbon fiber as a frame material is used for making cycle.
5) Porter Five Forces Analysis

THE PORTERS 5 FORCES MODEL (TEMPLATE) BARGAINING POWER OF BUYERS. Assess the power of Buyers Circle one of the following. Determinants Defining Question 1 = low, 5 = high, or N/A if it doesnt apply to your industry. Concentration Are buyer fragmented or highly concentrated (i.e. do a few monopolize the market?) If they are few and concentrated, then buyer bargaining power is typically high. Product versus Cost Does your product buyers purchase represent a Total significant fraction of the buyers cost? If so, buyer bargaining power is typically high. 1 2 3 N/A 4 5 1 2 3 N/A 4 5
Purchases
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Product
Is the buyers product or serve a commodity? Is
3 N/A
Differentiation there branding critical to success? Is there any actual versus a perceived difference? If the product are standard or undifferentiated, buyers typically have high bargaining power
Switching Costs
Is Switching cost low or high? If buyers face few switching costs, their bargaining power is typically high.
3 N/A
Backward Integration
Can they make what you make themselves? Is there a threat of backward integration? If so the threat is typically high
3 N/A
Impact Quality/
on Is the product you offer important to the quality of the buyers product or services? If not buyer power is typically high
3 N/A
Performance
Buyers Information
Does the buyer have complete information on the product he may purchase? If so buyer power is typically high
3 N/A
25/7=3.6
Result: As the result of the above analysis, it represents that the bargaining power of the buyer is relatively higher because buyers have low switching cost, low product differentiation and complete information about the products.
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BARGAINING POWER OF SUPPLIERS. Assess the power of suppliers Circle one of the following. Determinants Defining Question 1 = low, 5 = high, or N/A if it doesnt apply to your industry. Concentration Are the supplier fragmented or highly concentrated? (Do a few monopolize the market)? If an industry is dominated by a few companies, the suppliers are 1 2 3 N/A 4 5
typically powerful. Presences Substitute inputs of Are there any substitutes for your supplier products? If not suppliers are typically powerful. 1 2 1 2 3 N/A 4 5
Importance Relative Is your industry an important customer to Customer. the supplier group? If not suppliers are typically powerful Impact on Quality/ Performance Is your supplier product essential to the quality or performance of your business? If so suppliers are typically powerful
3 N/A
3 N/A
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Product Differentiation
Is the suppliers product or service a commodity? Is branding critical for success? Is there an actual versus a perceived difference? Suppliers with differentiated products typically have more bargaining power then suppliers selling commodities.
3 N/A
Switching Costs
How costly is it for you to switch from suppliers product? If switching costs are high, suppliers are typically more powerful.
3 N/A
Forward Integration
Can the supplier produce the product you make? Is there a threat of forward integration? If so, suppliers are typically powerful
3 N/A
22/7=3.14
Result: As the result of the above analysis, it represents that the bargaining power of the suppliers are low because of the presence of substitute, switching cost, product differentiation is low. INTENSITY OF RIVALRY Assess Determinants Defining Question the power of
Buyers, Circle one of the following. 1 = low, 5 = high, or N/A if it doesnt apply to your
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industry. Industry growth How slowly or quickly is the industry growing? If it is a slow growth industry, there is likely to be more intense fights among rivals for market share. 1 2 3 N/A 4 5
Fixed Cost
Does your business have a high fixed cost? If so, rivals will typically be tempted to cut prices to ensure sales, thus posing a significant threat
3 N/A
Product
Is your product or service a commodity?
3 N/A
Differentiation Typically the closer the product is to being a commodity the fiercer the intensity of rivalry. Brand Identity Is branding critical for your Rivals success? Is there actual vs. perceived difference? Brand identification by buyer reduces the threat of rivals. Switching Costs How costly is it for your buyer to switch between providers? Low switching costs typically increase rivalry. When a customer can freely switch from one product o another, companies must struggle to capture and retain customers. Concentration and balance Are there a large number of firms of equal size and power, all chasing after the same customer? If so rivalry is typically intense 1 2 1 2 1 2
3 N/A
3 N/A
3 N/A
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Diversity competitors
of Are
there
competitors
with
different
3 N/A
strategies and frame of reference? When competitors are diverse it is more difficult to establish the rules of game, so the threat from competitors is greater.
Exit Barriers
Are exit barriers low or high? High exit barriers make it costly to abandon a product. E.g. when an organization has specialized assets that cannot be easily sold off.
3 N/A
33/8=4.125
Result: As the result of the above analysis, it represents that the intensity of rivalry is high because the high fixed cost, exit barrier and no product differentiation and market is a competitive market with a number of companies that lead to a tough competition. THREAT OF NEW ENTRANTS. Assess the power of Buyers. Circle one of the following. Determinants Defining Question 1 = low, 5 = high, or N/A if it doesnt apply to your industry. Economies of Does successful entry require that companies have Scale experience and significant economies of scale or experience? Barriers to entry are typically high when an aspiring company must cut costs in order to compete in a large-scale and/or experienced market. 1 2 3 N/A 4 5
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Product
Do new entrants need to differentiate by spending
3 N/A
Differentiation heavily on advertising, customer services or product differences to overcome existing customer loyalty? Product differentiation is typically a barrier to entry.
Brand Identity
Do new companies need to spend heavily on brand identification to gain customers loyalty? Brand identification is typically a barrier to entry
3 N/A
Switching Costs
Does the buyer have to pay to switch from one suppliers product to another? High switching costs are typically a barrier to entry.
3 N/A
Capital Required
Does the new company need to invest large financial resources (relative to market size) in order to compete? Huge capital requirements are typically a barrier to entry
3 N/A
Access Distribution
to Do the new comers have access to distribution channel for product or services? Difficult access can typically be a high barrier to entry.
3 N/A
Cost advantage
Established companies have cost advantages over new rivals because they may have already obtained proprietary product technology, access to raw materials, favorable locations and government
3 N/A
subsidies. In addition, established company may have passed a learning or experience curve. Such costs advantages are typically a barrier to entry for a new entrant.
23/7=3.3
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Result: As the result of the above analysis, it represents that the threat of new entrant is low and barrier to entry is high because access to distribution is very challenging for new entrant, huge capital is required and switching cost is also low. The existing players in the industry have cost advantage to the new rivals because they have already production technology and favorable locations. THREAT OF SUBSTITUTION: Assess the power of Buyers Circle Determinants Defining Question one of the
following. 1 = low, 5 = high, or N/A if it doesnt apply to your industry.
Price performance
Does the substitute offer a better price or performance? A substitute product or service is a threat to competition when it offers a higher performance at a given price or the same performance at a lower price.
4 N/A
Switching Cost
Is it costly for buyer to switch to the substitute product? When buyers must pay more to switch to a substitute the threat of substitutes is low.
3 N/A
4/2=2
Result:
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As the result of the above analysis, it represents that the threat of substitutes is lower. Because the price of the substitute is high as compare to cycle. So it is very difficult to switch on subtitue.Therefore the threat of substitutes is relatively lower.
Interpretations:
BARGAINING POWERE OF BUYERS: The Dealers and sub-dealers are compelling to provide the cycles of their choice (Special) which may cause losing the market for standard cycles. Buyers switching cost is low because of the availability of Hero, Atlas, Avon and Chinese Cycles in the market. The buyer can switch to the other brands so the bargaining powers of buyers are high.
BARGAINING POWERE OF SUPPLIERS: Industry players are not facing sizeable threat from suppliers because the major parts of cycles are manufactured by them except some of the parts for special cycles are imported from Japan.
INTENSITY OF RIVERLRY Industry players are facing stiff competition because of number of players Like, Avon, Atlas, Hero and few foreign competitors. The competition is strong in standard cycles because the market growth of standard cycles is slow. But it is weak in a sense that market for special cycles is growing rapidly. Switching cost in special is low so the buyer may shift the demand.
THREAT OF NEW ENTRANTS: Over all the industry in a mature stage and there is strong threat of new players particularly form China, Indonesia and Taiwan with low priced cycles. But on the other hand strict regulatory control of the Government on this industry and access to distribution channels is difficult. So it is very difficult for the new entrants.
THREAT OF SUBTITUTE:
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In cycle industry threat of substitute is low because close substitute of cycles is cycle Scotty and motor cycle which have high switching cost and high prices.
6) Key Success Factors:

Product design In cycle industry survival innovative products designs are compulsory to attract the customers. Technological up-gradation The industry players need to replace their old machinery with latest updated machinery that does reduce production time and cost of the products. Research & development The industry players more focus on the research and development to create innovation in products. By the innovative products as carbon frame and magnesium frames so they can compete domestic market as well as the international market. Product quality In cycle industry there is a huge competition with local and international players. The players do more concentrate on quality products and sustain this quality on the basis of quality standards. Quality depends on good material as steel,frames,tubes etc So this way they can attract and make loyal to customers with their brand. Strong distribution network Companies in bicycle industry must have strong retail and distribution network for survive in the industry.
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Cost competitiveness Industry players and new comers use new technology and install plants to reduce the production cost by this they can penetrate in the market and gain more market shares.
Customer satisfaction & loyalty Companies offer low cost and high quality cycles with design through this can succeed in the industry and can make customers loyal with their brands. Financial capital The financial capital is necessary to sustain and compete in the industry because huge investment is required otherwise no one sustain and enter in this industry. Market shares: The companies in cycle industry offer low cost and high quality products to customers focus on rural and urban areas to gain market shares. Brand Image: Indian people are brand conscious as given information in the case that people purchase cycle which are recommended by other person(cyclist, friends).
7) Industry Life cycle:
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Cycle industry
Bicycle industry is a mature industry where competition is very high. Product innovations are few and incremental. In Indian bicycle industry two core models exist specials and standards. While the market has matured in standard model but in growth in special model, the market of special segment is growing rapidly. The companies target to youth in special segments. Industry players are introducing new designs and with different material which are frequently copied by others. Market of standard bicycle is decreasing because people prefer stylish bicycle as girls and boys. In Indian market material is available at low cot and they are manufacturing inside of India .In some cases players import material for special bicycle. The drivers of demand essentially are the rates of growth of income and its distribution.
Section No.2
8) CORPORATE PROFILE a) MURUGAPPA GROUP
The Murugappa group, headquartered in Chennai, India, is a $1.5 billion conglomerate with interest in engineering, abrasives, sanitary ware, fertilizers, finance, bio-products and plantations.
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It has 29 companies under its umbrella; eight are listed and actively handed on the national stock exchange and the Bombay stock exchange. Together, they have over 28,000 employees. The business has its origins in 1990, when Dew a bahadur AM Murugappa chattier established a money-lending and banking business in Burma (now Myanmar), which then spread to Malaysia, Sri Lanka, Indonesia and Vietnam. A century down the line, it has withstood enormous vicissitudes (including strategically moving its assets bank to India and restarting from scratch in the 30s before the Japanese invasion in world war 2) to became one of the countrys biggest industrial houses. The group turnover crossed the $1 billion mark in 2003-04, with an impressive growth of 25% Rs. 42,060 million in 2002-03. The group clocked a 40 percent jump in profit before tax over the previous year. Murugappa Groups consolidated turnover for 2004-05 crossed %1.44 billion. The group achieved a growth of 20 percent over the previous year. The group is a market leader in India across a spectrum of products like sanitary ware, fertilizers, abrasive, automotive chains, car doorframes and steel tubes. Neemzal, a neem - based organic pesticide, is the countrys best known brands like BSA and Hercules in bicycles, parry ware in sanitary ware, parrys spiraling and parrys Beta carotene in nutraceuticals, ball master and Ajax in abrasives, Gromor and paramfos in fertilizers, and many more come from the Murugappa group. Its companies have tie-up with Borg-warner of the USA, wend of Germany. Morgan Crucibles of the U.K and Mitsui Sumitomo insurance of Japan. It has registered 43 International patents for its research and development innovation. The group has grown consistently through its decisive and visionary response to change times. Its pioneering efforts, steadfast commitment to ethical business practices and it dogged pursuit of new arras to extend its business acumen have brought in its wake several prestigious national and international awards. Social commitment has always been the cornerstone of the groups ethos and it has been at the forefront of eco-conservation, public health, and education in the communities where its companies operate, since 1957. It runs four schools, a polytechnic college and four hospitals. Besides, the group runs a research and development center for rural development the sir AMM
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Murugappa Chettiar research center (MCRC), which has been a designing simple, costeffective technology for local artisans since 1977. The Murugappa group has 29 companies active in the area of engineering, abrasive, sanitaryware, fertilizers, finance, bio-products and plantations. The major companies of the group all: Carborumdum Universal Limited Cholamandalam Investment & Finance Company Limited Coromandel Fertilizers Limited EID Parry Indian Limited Godavari Fertilizers Limited Parry Agro Industries Limited Parry Nutraceuticals Limited Ube investment of India Limited
Name of the Companies TII EIDP CFL CUL OTHERS
% of turnover 28% 34% 16% 8% 14%
(Source: http://en.wikipedia.org/wiki/Murugappa_Group)
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b)
TUBE INVESTMENT OF INDIA LIMITED
A reputed engineering company in India, driving excellent in work and part of the US $1.5 billion India conglomerate, the Murugappa Group.
CORPORATE HISTORY Incorporate in 1949- TI cycles of India (TICI) in collaboration with TI, UK the worlds largest manufactures of bicycles. A tube product of India (TPI) was established in 1955 with the objectives of providing backward integration to bicycles. TPI merged with TICI in 1959. Name of the company changed to tube investments of India Ltd. TPI established a cold Rolling mill in 1962 for the production of cold Rolled close annealed steel strip. TPI established EOU at Avadi in 1996. Tube plant commissioned in 1997 at Shirwal, Maharashtra. Facilities to produce doorframes for Maruti 800 cc and Hyundai Santro in 1998 Cycles plant at Nashik set up in 2001. Tube Investment of India limited is the flagship company of Rs. 6250 cr. Murugappa Group. It manufactures precision steel tubes and ships, car door flames, auto motives and industrial chain and bicycles. The company has 13 manufacturing assembly units spread across the country. Marketing offices that act as interface between customer requirements and production train ably support these units. The companys shares are listed on the national, Mumbai and Chennai stock exchanges within India and GDRS on the Luxembourg stock exchange. The companys product segments are- Engineering, metal formed products and cycles.
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TI is the market leader in precision tubes with 61 percent market share by virtue of its quality & application engineering capabilities. TI is the market leader in roll formed car door flames with 57 percent market share by virtue of its cost efficiency, association with key auto majors and roll forming capabilities. TI is a leading player in auto motive chain with 35 percent market share by virtue of its quality, cost & delivery and association with two wheeler major. TI is a leading player in bicycles segment with 30 percent market share by virtue of its brand equity, product development capability and proximity to the markets. The company reported a turnover of RS. 1563.39cror and profit after tax of Rs. 98.55cror in 2004-2005 The company also has an interest in the services sector through its investments in Cholamandalam Investment and finance company Ltd and Cholamandalam MS general insurance Co. Ltd., Tube investment of India was one of the most important post-independence forays of the Murugappa group into manufactures. It was a niche the group identified as a trump card for a nascent nation; marking the poor mans vehicle, the bicycle. It was originally founded as TI cycles of India and TI miller-, which manufactured cycle, lamps and dynamo sets-were merged with the company in 1959 and 1984 respectively. TI is the second largest- manufacturer of bicycles in India. Marketing top Brands like Hercules, BSA and Philips, and had a market share of 31 percent in 2003-04. In the value-added special segment, TI in the leader, with a 50 percent market share. More recently, the company entered the promising health conscious exercise bicycle segment in 2002-03. TI cycles of India, one of the leading bicycle manufacturers in India, started in 1949, have been at the forefront of innovation and are a pioneer in the market of cycles. TI cycles are the makes of countrys most famous brands like Hercules, BSA and Philips cycles. The companys vision is to be a worldwide leader in cycling and solution by installing the pride of ownership in the customers.
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Certificates: certified with ISO 9002 & Iso 14001
Exports: TI cycles is an exporter to many regions across the global-Europe, south East Asia and Africa; being some of them
Locations: Chennai (corporate HO), Nashile, Noida, Durgapur, Banglore, Kolkatta, Patna & Ludhiana.
A subsidiary, tube products of India was set up in 195 in collaboration with tube products (old bury) Ltd, UK to produce electric resistance welded (ERW), cold drawn welded (CDW) tubes and draw over mandrel (DOM) tubes. In 1957, tube investments of India started production of cold-rolled close annealed steel strips, in collaboration with TI, UK, primarily to meet in house and group requirements.
Through started as a backward integration project for the manufacture of bicycles, today, TPI is a major preferred supply of precision welded tubes to major automotive companies in India and abroad. It is the undisputed leader in the Indian market for precision welded ERW & CDW steel tubes, with the widest variety and range in terms of size as well as material gracles offered. TPI started operation at Avadi, Chennai, but has expanded with two more plants satirically located in western and northern India. Another subsidiary, TI metal forming, is a pioneer in cold roll forming. It manufacturers and supplies value- added metal formed components like car door flames, sash/division channels, door guide rails and bar assembly. It has plant in Chennai and Bawal (near Gurgaon). Both plants in Chennai and QS 9000 certified. The Chennai plant is ISO 14001 certified.
A third plant has been set up near Baroda (in Gujarat state, Western India) to manufacture and supply doorframes, impact beam, bar and rail assembly for general motors, India. Its client list includes Maruti udyog general motors, India.
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TIDC India formerly known as TI Diamond chain Ltd, was established in 1960 in collaboration with the Diamond chain co, USA. Starting as a marker of bicycle industrial chains TIDC produce from tiller chains, leaf chains and conveyor chain to industrial power drive chains, engineering class chains, in automotive TIDC produces motorcycle drive chains and engine mechanism chain and fine blank parts. Annually production runs to 45 million ESS feet, and commands 40 percent of the domestic market share. The company is known for developing high performance chains, for specific applications and machinery. Some of TIDCs popular brands are Diamond and Xtron, TIDC exports to over 50 countries worldwide. TII has entered into a joint venture with Borg Warner Morse TEC, USA for production of timing and silent chains. It has entered into a technology agreement with Tsubakimoto chains company, Japan, for engineering class chains. Some of TI Diamond chains popular brands are Diamond and Xtron.
Tube Investment group TI CYCLES OF India TUBE PRODUCTS OF India TI METAL FORMING OF India TI DIAMOND CHAIN LTD TII BUSINESS PORTFOLIO Business % Turnover
TI Cycle
41%
Engineering TI Metal Forming
56% 3%
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9) TI cycle of India Ltd

TI is a leading player in bicycles segment with 30 percent market share by virtue of its brand equity, product development capability and proximity to the markets. The company reported a turnover of RS. 1563.39cror and profit after tax of Rs. 98.55cror in 2004-2005
TI is the second largest- manufacturer of bicycles in India. Marketing top Brands like Hercules, BSA and Philips, and had a market share of 31 percent in 2003-04. In the value-added special segment, TI in the leader, with a 50 percent market share. More recently, the company entered the promising health conscious exercise bicycle segment in 2002-03. TI cycles of India, one of the leading bicycle manufacturers in India, started in 1949, have been at the forefront of innovation and are a pioneer in the market of cycles. TI cycles are the makes of countrys most famous brands like Hercules, BSA and Philips cycles. The companys vision is to be a worldwide leader in cycling and solution by installing the pride of ownership in the customers.
Mission:
y y y
Ethical norms in dealing with all the stakeholders Provide value of money to customers through quality and services Treat employees with respect; provide opportunity to learn innovativeness and creativity in business.
Vision:
TI Cycles vision is To be the most preferred brand in fitness, recreation & personal mobility solutions. It strives to give its customers not only a bicycle but a lifetime experience.
a) BRANDS Of TI cycle of India Ltd:
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Hercules Hercules the flag ship brand of TI cycles portfolio, this brand of ours is still as young as ever. Hercules stands for a unique pride of possession-anchored in the time-tested values of heroisne and integrity, to which the brands customers subscribe in their own lives.
BSA BSA anchor flag ship brand of TI cycles, BSA stands for Birneighani small arms. It signifies the joy of cycling; fun and comfort go hand in hand with BSA. BSA today is an intrinsic part of the Indian family with cycles for everyone kids teams and adults.
Phillips
Phillips Cycles Limited was a British bicycle manufacturer based in Smethwick near Birmingham, England. Its history began early in the 20th century and ended in the 1980s by which time it had become part of Raleigh Industries, itself a part of the Tube Investments group. For a number of years, the company was the second-largest bicycle producer in Britain, after Raleigh.
Track and Trail
Track and Trail is the ultimate destination for everything in cycles - from the best of international bicycles and world-class accessories to a network of people with expertise on technology, performance and the intricacies of cycling. For mountain, road and hybrid bikes, you can choose from Cannondale, Bianchi or Schwinn world-class brands known for incomparable designs, superior comfort and ease of riding. We also have an exciting range of BMX and MTB cycles from GT and Mongoose for those who like a bit of adventure in their lives.8
b) PRODUCT PROFILE
TI cycles is one of the largest integrated cycle manufactures in Asia, Manufactures high quality bicycles for both domestic and international market. TICI manufactures and markets the HERCULES, PHILIPS and BSA brands.
Hercules
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Brand Names Hercules Hercules Hercules Hercules Hercules Hercules Hercules Hercules Hercules Hercules Hercules Hercules
Model Names Thriller Bravo Torando Axn Glider Top Gear Ezy Ultra Explorer Captain Kidz Ultima Dx Ultima Ex Wind pacer Hurricane
BSA Brand Names BSA BSA BSA BSA BSA BSA BSA BSA BSA BSA BSA Dina Rocket Comet Champ-H-Plus Aqua Zing I-Bike Model Names Lady bird spot Bravo Lady Bird Dino sour Dash DX
Health Segment
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Brand Names BSA BSA BSA
Model Names Trimgyni Trimgyni Jogger Trimgyni Stepper
10) Product life cycle:
Bicycle
The Company is operating in a MATURE industry where competition is very high. Product innovations are few and incremental. A long run product life cycle operates for the two core models specials and standards. Special bicycles for youth as kids school, college students which is in growth stage. Incremental product innovations (that are usually quickly imitated) expand the growth phase for the specials from time to time. Ability to introduce new variants
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of existing models and somewhat different models quickly is critical to retain market shareTI has 50% market shares in special segment. Therefore standard bicycle in mature stage but trends shows that which is moving from mature stage to decline stage because sale of standard bicycle s are decreasing and TI has market shares is 22% in standard bicycle.
11) SWOT Analysis:

Strengths:
Largest cycle manufacturer of India (one in every 5 cycles came from TI). Highly successful joint venture with Hercules cycles & Motor Co. of UK. Largest distribution network (more than 1000dealer all over the India and warehouses in more than 12 cities) Provide quality products to its customers. Strong Financial Support from Murugappa group. Brand name awareness Most cycle enthusiasts know the TI name. TI is known as a high-performance leader through technology and in the bicycle industry. Good relationships with customers/dealers and after sale services The company advertised its cycles fairly extensively through the newspaper media.
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Weaknesses:
Lack of distribution in rural areas and because of this reason people bought from urban market. Lack of research and development to reduce the cost and improve the quality. High cost of production and follow the economy of scale. TI & M sale representative did not visit cycle hire shops as a routine. They just went on the large hire shops once in a while. So it was realized that competitors of TI cycles was wooing the hire shops by gift and frequent visit on the shops and get discount for bulk buying. No new market tapping (North).
Opportunities:
TI need to be focuses on hire shops as new market in northern areas of India because hire shop owners had to travel long distance to buy a cycle. Some of them travel as much as 40Km. The study revealed that rural areas constituted an important segment of the market. As one cycle used in urban areas 3 were used in rural areas. Women and girls are the new markets for the company because the demands for ladies cycles are increasing. TI cycle has an opportunity to open more warehouse to meet the bust demand of associated with the festivals like Diwali,puja,harvests and marriage seasons.
Threats:
The sharp increase in the prices of raw materials as steel and wages. Competitors focus on its hire shops and purchase cycles in bulk and get discount.
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Cost audit is not applicable on small sectors. Rural affluence agriculturist would move from the bullock cart to the auto age without passing through the cycle age. More competitors entering the market.(China,Tiawan) Changing in government polices successive tariff inquiries and asked to the manufacturers to freeze the prices and also commission not exceed from 15%.
a) Internal Factor Evaluation (IFE) Matrix of TI Key Internal Factors Strengths Largest cycle manufacturer of India New technology Retail and distribution network. Highly successful joint venture. After sale services. Strong Financial Support 0.05 0.08 0.15 0.08 0.05 from 0.10 3 3 4 4 3 4 0.15 0.24 0.6 0.32 0.15 0.40 Weights Rating Weighted Score
Murugappa group. Brand name awareness 0.07 3 0.21
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Provide customers.
quality
products
to
its 0.10
0.30
Weaknesses Lack of research and development High cost of production. Lack of distribution in rural areas No new market tapping (North). 0.05 0.05 0.15 0.05 2 1 2 1 2 0.10 0.05 0.3 0.05 0.10
TI representative did not visit hire 0.05 shops Total 1.00
2.99
Interpretation: IFE score of TI 2.99 which is internally good. TI has strong distribution network and strong financial position financial position. TI concentrate on R & D to reduce the cost of products. b) EFE Matrix: EFE Matrix Opportunities TI need to be focuses on hire shops as new 0.05 market in northern areas of India. Rural areas constituted an important 0.1 3 0.30 3 Weight Rating Weighted score 0.15
segment of the market
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Women and girls are the new markets for 0.15 the company Open more warehouse to meet the bust 0.05 demand of associated with the festivals Threats Sharp increase in the prices of raw 0.05 materials More competitors entering the 0.15
0.45
0.1
0.45
0.45
market.(China,Tiawan) Competitors focus on its hire shops 0.15 2 3 0.10 0.15
Cost audit is not applicable on small 0.05 sectors. Rural move on auto age without passing 0.1 through the cycle age. Changing in govt. policies Total 0.15 1.00
0.2
0.30 2.65
Interpretation: EFE score of 2.65 and weighted scores on above table indicate that the TI cycle has opportunities because to succeed in the market by focusing on new market segments of women and girls. It is opportunity because weighted score is .045 which is high from others variables. Another opportunity that TI cycle of India has that rural area constitute an important segment of the market and concentrate on this segment. As one cycle used in urban areas 3 were used in rural areas. This is 2nd opportunity because in which weighted score is 0.30. The highest threats from
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sharp increase in prices and competitors as china & Taiwan because in which weighted scores is 0.45 which is highest from others variables.
12)
Competitor Analysis
Competitiveness of TI
TI Cycles faced competition from Hero Cycles Limited, Atlas Cycles Limited, and Avon Cycles Ltd. All of them were located in the North. TI Cycles had established a name and reputation for quality. Till the early seventies, being a dealer of Hercules cycles was a symbol of prestige. It lost its exclusivity when competitors from the North entered the industry and built leadership positions on the basis of lower price. (See the appendix for the evolution of the bicycle industry in India.) In the sixties TI cycles was a price leader with a price of Rs.198 for BSA cycle and Rs.172 for Hercules. Hero from Hero Cycles Limited and Atlas from Atlas Cycles Limited sold their cycles for Rs.140 and Rs.150 respectively. In seventies TI Cycles sold its BSA for
Rs224.95 and Hercules for Rs.205.90. Hero Cycles and Atlas Cycles had increased their prices to Rs.170.30 and Rs.181.60. In the early nineties TI had increased its prices to Rs.1475 and
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Rs.1270. Hero Cycles and Atlas Cycles had increased their prices to Rs.1090 and Rs.1176. Avon from Avon Cycles Limited sold its cycles at the lowest price of Rs.690.
In 1994-95 Hero held 47 per cent of the `standard market, followed by Atlas with 27 per cent. TI cycles share was 12 percent while Avons share was 14 per cent. The specials segment, constitute about 35% of the total cycle market was expected to grow by more than 20,000 per month and TI Cycles lead this segment with 50 per cent market share followed by Hero Cycles with 35 per cent and Atlas with 10 per cent. An executive remarked: Since our company had started the industry in India the general psychology was that the leadership would continue owing to the technical sophistication of the product. Hero Cycles intuitively learned to make the cycles on its own and offered value for money. It competed on price and tapped the price conscious segment, which turned out to be the largest segment in the country. We lost our leadership position in 1978 when our employees went on strike, and the strike lasted for a year. This enabled competitors to strengthen their position. The company got marginalized in north and was almost forced to vacate the northern market. Now Major players in the domestic bicycle industry are Hero Cycles, TI, Hind,Avon & Atlas with 35, 21% & 176% & 10% of share of volume respectively. Most cycles manufactured & sold in India are in the low price bracket of Rs. 2,500 to 3000. Competitors of TI cycle of India Ltd: There are many competitors of TI cycle of India Ltd as given below Hero cycle Ltd Avon cycles industries Atlas cycle industries Hind cycle Ltd Sen-Raleight industries
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Everest cycles Ltd
Road master industries But the major competitors are Hind cycle ltd, Atlas cycle of industries and Avon cycles industries
Majors competitors Names Hero cycles Ltd TI cycle of Ltd Hind cycle industry Atlas cycle industries Avon cycle industries Other
Market shares 35% 21% 15% 15% 8% 6%
Market shares
8% 15%
6% 35%
Hero TI Hind Atlas Avon 21% Other
15%
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(Article Source: http://EzineArticles.com/4392039)
13) Strategic Group: Strategic group compromises of a set of business units or firms that have the same similar strategies with same resources. For any industry, it is necessary to divide it into categories that help to better understand the competitive environment.
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TI cycle
SENRALEIG
HIND ATLAS
HERO EVEREST AVON RIM
. Narrow Product line Breadth Wide
Therefore, TI cycle of India Ltd, Sen-Raleigh, Hero, Everest, Avon, Rim, Atlas, Hind all companies have different products prices and product breath. So in which Atlas, TI cycle and Hind have almost same so they are in a same strategic group. Therefore Hero, Everest, Avon and Rim have also same strategies so we keep in a same strategic group but sen-raleigh has high prices and narrow product breath so it is separate.
No # 2
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SENRALEIG H
TI cycle
Hind
Atlas
Avon EVEREST RIM
Hero
Market shares In second strategic group map TI, Hind and Atlas have close market shares and price so they are in one strategic group.
14) Competitive Profile Matrix (CPM ) TI Critical Success HIND ATLAS
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Weights Strong network Product Designs Product Quality 0.1 0.1 Distribution 0.15
Ratings 4
Score 0.60
Ratings 3
Score 0.45
Ratings 3
Score 0.45
3 3
0.30 0.30
3 2
0.30 0.20
2 3
0.20 0.30
Customer satisfaction 0.08 and loyalty Market Share Financials position 0.1 0.11
0.24
0.24
0.24
3 4
0.30 0.44
3 3
0.30 0.33
2 2
0.20 0.22
Technology grading Price Competitiveness R&D Brand image
up 0.12
0.36
0.36
0.24
0.06
0.18
0.12
0.24
0.06 0.12 1.00
3 3
0.18 0.36 3.26
2 2
0.12 0.24 2.66
3 2
0.18 0.24 2.51
INTERPRETATIONS of CPM:
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CPM scores for TI Ltd showing aggressiveness as compared to the Hind, and Atlas. TI Ltd Limited is number one company within the local environment; it is basically maintaining market shares in cycle industry in special segment the following aspects: Strong distribution network Ti cycle of India Ltd focus on distribution network therefore it is a core competency of the company. On the base of this quality company is satisfying the customer or retailer demands. Moreover, Hind at the 2nd number and leading industry in effective distribution and strong financial position. Finally Atlas comes at number 3rd with leading position in persistence in distribution and technology.
Section No.3
Shahbaz,Khubaib,Umair Page 44
15) Value Chain of TI cycle of India

Support Activities: Procurement department: The basic task of procurement department is to buy raw material for processing. The basic raw material used in the cycle industry is steel, stainless steel etc. They have 6 major vendors, from whom they get the spare parts like mudguards and frames etc.. Technology development: Information Technology TI Cycles used computers for office related work like accounts finalization, budgeting and planning, report preparations and the like. Computers were not installed on the shop floor. Manufacturing Technology: They used technology to join the various metal parts was called dip brazing. Also the new technology was introduced in 1985 and a new technology called charge brazing was adopted to join the parts and change into triangle shapes. Human resource management: In 1994-95, TI cycles had total staff strength of 4016 people. The non-managerial staff strength was 3742. TI cycle of India is continually focusing on hiring highly qualified professionals who are young, energetic and motivated towards achieving tasks as challenges. The company has a separate HRM department hiring the right employee for the right job. The qualification of the product mangers and others are MBA and labour qualifications mostly inter and graduates. They are likely offering higher salaries to their professionals based on their motivation towards achieving tasks. They are emphasizing on a friendly working environment to their employees that helps then to achieve their tasks in a positive way. Another task of HRM department is to upgrade the skills of their employees through training programs. Therefore, they initiate training programs for their employees to boost the sales of their employees to better perform their tasks.
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General administration: The basic task of the administration department is effective planning to attain the overall goals and objectives of the company. Therefore the basic objective of TI cycle of India is to serve their customers with high quality at a relatively lower cost. This can only be achieved through strong integration amongst different departments and that can only be ensure through the administration department. Inbound logistics TI cycle of India Ltd use pipes. , Steel, Stainless Steel, Forks, Mudguards, Rims, Tubes, Tyres,saddle,lamp,stand,carrier,lock,bell,chain guard. Operations: Operations at the Ambattur Plant The Ambattur unit began with the assembly of completely knocked down kits imported from the collaborator. The indigenization of the components began with the commissioning of
components manufacturing units in 1954 at Ambattur itself. The management decided to make all parts under one roof, as there were no reliable suppliers of parts in and around Madras. The unit started by producing parts for standard black colored `Hercules bicycles. An executive remarked, In those days producing parts that fitted to each other was a commendable engineering effort. The key parts were the frame and the fork made from steel tubes. To the frame and fork assembly were fitted the various parts of the bicycles like tyres, mudguards, handles, brakes and carriers. Fitting the frame and the fork together was the most critical operation. The technology used to join the various metal parts was called dip brazing. The technology called for dipping the parts to be joined in a bath of molten brass and allowing the molten metal to enter the gap between two parts and solidify. This was a very tough and hazardous operation. It led to wastage by way of excess deposit of brass on the parts. The excess metal was recovered by dipping the joined parts in zinc acid. This operation released zinc fumes and caused pollution. It also restricted the shape of the frame to a `triangle. This technology was changed in 1985 and a new technology called charge brazing was adopted to join the parts. In this technology fine
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particles of brass were charged into the cavities of the two parts and heated at high temperature. This saved the metal but consumed more energy. This technology was replaced by welding. The parts were welded together using welding rods. Welding created the possibilities of alternative shapes and facilitated the introduction of luxury and sports bikes.
The frames and fork assembly was painted in the painting shop. Earlier the parts were dipped in a paint bath. This was discarded in favour of spray painting in which fine particles of paint were deposited on the parts by a spray gun. Outbound logistics Initially fully assembled bikes were sent to the market. To save the cost of transportation and improve logistics, the format was changed to sending ready to assemble kits to the dealers. The components were put in a cardboard box and dispatched to the dealers by truck. The dealers received the cycles in completely knocked down (CKD) conditions in cases. Each case
contained 5, 6, 10 or 16 cycles. The dealer assembled the cycles before sale. The dealers assembled the parts into full bikes at their premise. The technicians of the dealers were trained by the dealer himself.
Marketing and sales The basic task of marketing department is to market their products to the local and the international market to their prospectus customers to boost their overall sales. Company marketer focus to the three segment as employed who use cycle, white collar worker, and the affluent youth. Through marketing effort BSA SLR models which sold about 300000cycles a years was good. They have a very strong sales force that is competent and motivated towards achieving the target. Company extensively advertise in newspaper and sponsor to the sports player and do
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internet marketing and give free gift to its customers for creating customer loyalty.
Services: They offer after sales services to their customers to better cope with their further demand and increase their overall revenues. This also helps in customer satisfaction about their product and customer expectations from the product. TI cycle of India Ltd give warranty and after sale services to its customers as mention given below Everything we make and sell is guaranteed to be free of manufacturer's defects for the time period specified from the original date of purchase. This warranty applies only to frames and components that have been subjected to ordinary stresses of use or component type purchased (mountain, road, cyclocross, track, touring or BMX) and does not apply to frames or components sold to or used regularly by someone other than the person for whom the frame or component was built. This warranty does not cover alteration or failure due to accident. Ti Cycles liability for breach of warranty is limited to repair or replacement of the frame or component at the sole discretion of Ti Cycles. Ti Cycles disclaims all other express or implied warranties as provided in this section, including warranties of fitness for a particular purpose. This warranty is extended to the original owner of the frame or component and is non-transferrable. In all cases, proof of original purchase is required. Production Components - 1 year. Custom Components - 2 years. Production Frames - 2 years. Custom Steel Frames - 5 years. Custom Titanium Frames - 10 years.
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Value Chain Activity: Value-chain Activity Primary: Inbound logistics Operations Yes Yes Mainly once in a year because they purchases in bulk for cater their yearly demand. Through traditional and latest automated machinery & quality control check. Outbound logistics Marketing sales Service Yes & Yes Yes Shipment in large lot to minimize cost and assure quick delivery. Focusing on good retailer and customer relationship to boost the sales Provide warranty and after sale services to its customers and Emphasize on customer feedback to improve quality. Yes/ no How Does TI cycle of India Create Value For Customers
Support: Procurement Yes Buy good quality steel that fits their standards from selected suppliers Technology development Human resource management General administration Yes Effective planning with ability to coordinate and integrate activities across the system. Yes Friendly environment with emphasize on quality work. Yes Large emphasize on quality than to quantity
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Resources, activities and relationships that enable TI to achieve a sustainable competitive advantage? Resource/Activity Is it Valuable? Is it Rare? Are there few Is it difficult to make? Yes Yes Yes Yes Yes Yes No
substitutes? Inbound logistics Operations Outbound logistics Marketing & Sales Service Procurement Technology development HRM General admin. Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes No No NO No No NO Yes No Yes yes
Yes Yes
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VROI Analysis:
(1 is low and 5 is high) KSF Value Rare limitability Substitute Competitive advantage Brand image Technology Continuous innovation R&D Product quality design Distribution network Financial position 5 3 4 5 17/20=0.85 5 4 4 4 17/20=0.85 & 4 5 5 3 4 4 4 3 3 3 5 3 3 3 2 4 4 4 3 2 17/20=0.85 16/20=0.80 15/20=0.75 12/20=0.60 12/20=0.60
Core Competencies: Murugappa Familys has experience, knowledge, values, decision making power. The core competences and competitive advantage of TI is strong distribution network strong financial position and good brand image. Also TI has good score in innovation and technology. TII capabilities: Expertise in Engineering & Electroplating Competencies in Technical Sophistication of the Product Process Efficiencies
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Section No.4
16) McGahan Framework Model Core Activities Threatened Threat ened Radical change Not Threatened BCG Matrix
Star
Creative change Threatened
Core Assets
Intermediating change
Progressive change
Cash Cow Dog
As per McMahan Framework, TI is not facing serious threat of obsolescence of core assets and core activities either. So TI falls in Progressive change. And it is cash cow. On the other hand TI has opportunity to go into auto industry because by using same assets and activities can produce motor bikes. 17) Ansoff Model:
Not
BSA,Her cules,Ph ilips
Montra bicycle:
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TI Cycle Of India Ltd Chennai, March 24, 2011Murugappa Group, announced the launch of India s first indigenously manufactured carbon frame bicycle series with the brand name Montra .Therefore TI is doing product development so it exist in 2nd quadrant of new products and existing market. TI brands as BSA Hercules and Philips exists in 1st quadrant existing product and existing market. TI has opportunity t go into new market as rural market because they have only stores in urban areas people of rural areas come in cities for purchasing bicycle.
18) Grand strategy matrix:

Rapid Market Growth Quadrant II Market development Market penetration Product development Horizontal integration Divestiture Liquidation Quadrant I Market development Market penetration Product development Forward integration Backward integration Horizontal integration Concentric diversification
Weak competitive Position
Strong competitive Position
Quadrant III Retrenchment Concentric diversification Horizontal diversification Conglomerate diversification Liquidation
Quadrant IV Concentric diversification Horizontal diversification Conglomerate diversification Joint venture
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Interpretation: Rapid Market Growth The specials segment, constitute about 35% of the total cycle market was expected to grow by more than 20,000 per month and TI Cycles lead this segment with 50 per cent market share followed by Hero Cycles with 35 per cent and Atlas with 10 per cent. TI cycle of India has strong competitive position in the market because they have 3.23 score in CPM which is high as compare to its competitors so market is growing and TI cycle has strong competitive position so that why TI lies in I quadrant. According to Grand strategy matrix suggested strategies for 1st quadrant are y Market development y Market penetration, y Product development, y Backward integration, y Forward integration, y Horizontal integration y Related diversification
19) Diversification strategy:

TI investment group consists of TI cycle; Tube products of India Ltd, TI diamond Chain, Miller and the Saddles of India all of which are manufacturing companies. So TI group is making tubes, saddles, chains for cycles and motor cycle therefore it is using related diversification strategy by using the almost same value chain.
20) Integration strategy:

TI is using backward and forward integration strategy. TI is manufacturing cycle parts for itself for example Tube products of India is making tube for cycle and motor cycle,TI dimond chain Ltd also is making chains for cycle and motor cycle so TI cycle taking material from its companies for making cycle. TI is also using forward integration for example it is distributing products itself through TI M sales Ltd distribute TI products with branches and district offices all over India
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Horizontal strategic alliance: TI investment group had horizontal strategic alliance with UK companies as TI metal sections were formed with collaborations with BARHINGAM of Tube Investment ltd UK. The TI miller ltd was established in 1960 with H Millar & co. of UK. The Wright saddles of India made collaboration in 1962 with JB Brooks & co ltd UK. So all these alliances were made with related UK companies that had same business and value chain.
21) Generic Strategy:
The TI is using Differentiation Strategy on the base of quality and price. TI more focuses on quality and dont compromise on quality because TI cycle charge high prices from its customers but on the other hand competitors are using penetrating strategy to capture the market. Hero gain market shares on the base of penetrating strategy. Market of standard cycle has declined and special cycle market is growing so this time TI needs to use low cost strategy for standard cycle by changing its style and design to attract the customers. On the other hand TI use same differentiation strategy in special cycle segment because this market segment is growing TI already has 50% market shares in special cycle segment. TI can charge high price on the base of quality and different styles.
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22)IE Matrix.
The IFE Total Weighted Scores 4.0 3.0 Strong (3.0-4.0) High 3.0-4.0 I Average (2.0-2.99) II 2.0 Weak (1.0-1.99) III 1.0
3.0 Medium 2.0-2.99 IV TI V VI
2.0 Low 1.0-1.99 VII VIII IX
1.0
EFE total score Strategy for different quadrants y y y Growth and Build (I, II, IV ) Hold and Maintain (III, V, VII ) Harvest or Divest ( VI, VIII, IX )
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IFE score 2.9 and EFE score is 2.65 which means that the company comes in 5st quadrant that is in (III, V, VII) so the company should go for the hold and maintain strategies that are market penetration and product development, market development 23) Selecting Strategy:
Alternative Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Retrenchment
Anita Modle
Ansoff Modle
IE Matrix
GRAND Mtrix
TOTAL

Divestiture
Liquidation
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Interpretation: From the above calculation that the highest score in market penetration and product development which is 4 and 3 so feasible for TI is to concentrate more on penetrating and market development strategy. If we see the original condition of the cycle industry that the competitors of TI as hero and Hind use penetrating strategy by offering low cost concentrate on and product development so they gain more market shares in current situation now hero is the market leader with 35% market shares. Therefore TI also focuses on market penetrating strategy by offering low cot product with good quality. TI has technology to produce low cost bicycles Also concentrate on product development and introduce new designs, stylish bicycles to tap the market in this way TI again can become the market leader.
24) Distribution Network of TI cycle of India Ltd

TI has strong distribution network all over the India (1,500 direct dealers under whom there are over 10,000 indirect outlets across the country. About 600 of these are trained outlets, including 180 exclusive BSA-GO stores and warehouses in more than 12 cities). The company expects that the number of retail outlets to increase to 700 and exclusive stores to 250 by the end of the next financial year.
TI has extensive distribution channel and distribute its products through multiple channels as given below
Company (TI)
Authorized dealers
Retailers
End consumers
Company (TI)
Unauthoriz ed dealers
Retailers
End consumers
Company (TI) wear house
End consumers
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25) Future Strategic Options Market Development ( Big opportunity) The TI should consider following future strategies for the market development. a) Northern markets should be focused for broadening sales. b) Offering cycles to Indian Postal Services. c) Offering cycles and tricycles to Ice Cream vendors, Home delivery services restaurants, Tea Companies and Soft Drink Companies. d) Offer cycles to courier companies. e) Offering cycles for athletes.
Product Development a) The TI should develop an advanced version of standard cycles for rural area by adding shock absorbers to carry heavy load with ease. b) Light and folding cycles should be developed the urban areas to avoid traffic congestion and parking problems. a) A purpose built cycle with wide carrier for lunch providers in the urban areas. b) Purpose built cycles for house wives with added carriers.
Section No.5
26) Financial Analysis:
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Profit and loss account of TI 1965 net sales less cost of good sold stock consume wages and salaries net mfg.expences total CGS gross profit less operating expenses admn. &gen.expenses Interesty Depreciation operating netprofit/loss add non operating net profit less provision of taxation net profit after tax Add. transfer from previous reserve surplus b/f available for appropriation less statutory dv.reb.reserve disposable profit less dividends transfer to reserve total transfer balance being surface 845.18 388.94 104.09 123.74 625.65 219.53 56.82 18.19 33.24 1118.28 17.11 128.39 64 64.39 0.04 64.43 2.6 61.77 31.25 30.5 61.75 0.02 1966 813.9 398.12 109.7 130.26 638.08 175.82 55.94 27.05 34.95 57.89 29 86.96 40 46.96 0.02 46.98 9.77 37.21 31.25 5.95 35.2 0.01 1967 1002.85 473.63 133.27 171.65 776.55 226.3 66.77 38.49 40.75 8.29 36.88 117.17 49.92 67.22 6.95 0.01 74.18 31.24 42.95 37.5 5.4 42.9 0.05 1968 981.87 522.53 123.33 168.29 823.15 158.72 80.33 41.5 44.99 -8.1 41.56 33.46 1.44 32.02 2.75 0.05 34.82 4.08 30.02 30 30 0.02 k 1969 1163.27 (Lakhs) 1970 1310.96
615.56 709.12 148.52 170.88 202.72 223.17 966.8 1103.17 196.47 88.05 35.31 45.5 27.61 54.52 82.13 26.34 55.79 0.02 55.81 5.05 50.77 37.50 13.25 50.75 207.79 105.17 39.32 51.41 11.89 89.87 101.76 41.29 60.4 0.02 60.49 7.45 53.04 39.71 13.32 53.03 0.02
INTERPRETATION Income statement shows that TI sales was increasing from 1965 to 1970 and the same trend in CGS.There were fluctuation in NP in those years.
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Horizontal Analysis(% change In) 1965 (Sale)100% 100% 100% 100% CGS)100% 100% 100% 100% 100% 100% 100% 100% 100% (N.P)100% 100% 100% 100% 100% 100% 100% 100% 100% 1966 -4% 2% 5% 5% 2% -20% -2% 49% 5% -95% 69% -32% -38% -27% -50% -27% 276% -40% 0% -80% -43% -50% 1967 23% 19% 21% 32% 22% 29% 19% 42% 17% -86% 27% 35% 25% 43% -50% 58% 220% 15% 20% -9% 22% 400% 1968 -2% 10% -7% -2% 6% -30% 20% 8% 10% -198% 13% -71% -97% -52% 400% -53% -87% -30% -20% -100% -30% -60% 1969 18% 18% 20% 20% 17% 24% 10% -15% 1% -441% 31% 145% 1729% 74% -60% 60% 24% 69% 25% 0% 69% 0% 1970 13% 15% 15% 10% 14% 6% 19% 11% 13% -57% 65% 24% 57% 8% 0% 8% 48% 4% 6% 1% 4% 0%
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Vertical Analysis of TI(% of sale) 1965 100% 46% 12% 15% (CGS)74% 26% 7% 2% 4% 132% 2% 15% 8% Net profit 8% 0% 0% 8% 0% 7% 4% 4% 7% 1966 100% 49% 13% 16% 78% 22% 7% 3% 4% 7% 4% 11% 5% 1967 100% 47% 13% 17% 77% 23% 7% 4% 4% 1% 4% 12% 5% 1968 100% 53% 13% 17% 84% 16% 8% 4% 5% -1% 4% 3% 0% 1969 100% 53% 13% 17% 83% 17% 8% 3% 4% 2% 5% 7% 2% 1970 100% 54% 13% 17% 84% 16% 8% 3% 4% 1% 7% 8% 3%
6% 0% 0% 6% 1% 5% 4% 1% 4%
7% 1% 0% 7% 3% 4% 4% 1% 4%
3% 0% 0% 4% 0% 3% 3% 0% 3%
5% 0% 0% 5% 0% 4% 3% 1% 4%
5% 0% 0% 5% 1% 4% 3% 1% 4%
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hind 1968 (Sale)100% 100% 100% 100% 100% (CGS)100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% (N.P)100% 1969 227% 86% 0% 0% 291% 110% 290% 107% 0% 14% 181% -78% 85% -44% -92% 26% 1970 163% 219% 130% 323% 205% 10% 15% 244% 321% 8% 69% -1969% 681% -155% -100% -160% 1968 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -1014%
Horizontal Analysis(% change In) atlas 1969 4% 8% 3% -3% 8% -14% 16% 0% 30% 5% 15% -53% 136% -27% -31% -17% 1970 12% 16% 8% 21% 15% -5% 4% 0% 1% -2% 3% -30% 51% 6% -18% 58% 1968 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 10%
sen.raleigh 1969 8% 0% 4% -15% -1% -15% 7% 0% 6% 2% 6% -124% 52% -82% -17% -95% 1970 -9% 7% 9% -1% 7% -19% 11% 0% 21% -7% 9% -838% 12% -639% -100% -2360%
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hind 1968 (Sale)100 % 66% 0% 0% (CGS)66% 33% 11% 2% 0% 12% 24% 9% 2% 12% 7% (Net profit) 5% 1969 100% 38% 28% 13% 79% 21% 13% 1% 3% 4% 21% 1% 1% 2% 0% 2% 1970 100% 46% 24% 21% 91% 9% 6% 1% 5% 2% 13% -4% 4% 0% 0% 0%
Vertical Analysis(% of sale) atlas 1968 100% 59% 14% 9% 80% 20% 9% 0% 1% 1% 11% 8% 1% 10% 7% 3% 1969 100% 61% 14% 9% 84% 16% 10% 0% 1% 1% 12% 4% 3% 7% 5% 2% 1970 100% 64% 13% 9% 86% 14% 9% 0% 1% 1% 11% 2% 4% 7% 3% 3% 1968 100% 54% 17% 11% 82% 18% 9% 0% 3% 3% 15% 3% 1% 4% 1% 3%
sen.raleigh 1969 100% 50% 16% 9% 75% 14% 9% 0% 3% 3% 15% -1% 1% 1% 0% 0% 1970 100% 59% 19% 9% 87% 13% 11% 0% 4% 3% 18% 5% 2% -4% 0% -4%
Hind %sale was fluctuating in three consecutive years and the same trend seen in Raleigh but % continuous increasing trend in Atals which is 59%,61%,64%.Onther hand overhead cost also increasing from 1968 to 1970.The net profit % is high of atlas as compare to Hind and Religh.
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Ratios of TI cycle:
RATIO ANALYSIS (FROMM1965 TO 1970)
CURRENT QUICK DEBT EQUITY OP.P. M ASSET TURNOVER NP.TO N.SALE N.P TO T.ASSETS D.P.E.C DU PONT(ROE) 3.28 0.32 0 9% 61% 5% 3% 0% 4% 0.99 0.40 0 0% 51% 2% 1% 6% 5% 1.04 0.44 0 -5% 86% -1% 0% 0% -2% 1.41 0.81 0.23 9% 243% 3% 7% 13% 36% 1.45 0.68 0.17 4% 244% 2% 5% 13% 24% 1.53 0.73 0.14 2% 252% 3% 8% 13% 39% 1.14 0.40 0.24 3% 109% 2% 4% 7% 16% 1.25 0.41 0.39 -1% 109% 0% 0% 0% 1% 1.2 0.47 0.44 -4% 109% -4% -4% 0% -18%
Ratio analysis From (2008 to 2009)

Current Ratio:
Year
2009
2008
Current assets Current liabilities Current Ratio
3337063765 1736638728
3226827618 1942587980
1.921
1.661
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Liquid or Liquidity or Acid Test Ratio:
Year Liquid assets Current liabilities Acid test Ratio
2009 2559482488 1736638728
2008 2119891277 1942587980
1.47
1.091
Absolute Liquid Ratio

Year Absolute liquid assets Current liabilities Acid test Ratio 2009 152820715 2008 151600603
1736638728
1942587980
0.087
0.078
(Annual Report:http://www.tiindia.com/)
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TI follows the Evolutionary change:

TI follows the Kaizen theory and believes on evolutionary change, because it was a continuous change that requires time to penetrate into the market. Penetration is not an easy task therefore it will be done through slowly penetrating into the market. Through evolutionary change, TI generate more revenuers by adding value as latest technology and made joint venture with UK companies for sharing of technology and distribution network. Murugappa group continuously related diversify as TI cycle in 1949,tube investment of India Ltd established in 1957.TI diamond chain was made in 1959.TI metal was formed with collaboration of Birmingham Ltd in 1965. TI miller Ltd was established in 1960 and TI saddle in 1962.so Murugappa group take decision on current and suitable situation slowly.
28) Conclusion: After doing the whole project that TI has strong back of Murugappa group.Murguappa has 29 companies from which 12 companies are listed. I cycle is also financially strong as we income statement shows that sale of TI is continuously increase from 1966 to 1970.Now the TI is market leader in special bicycle with 50% market shares. The shares in standard bicycle is 21%.TI needs to more concentrate on standard segment because the TI performance is not good. According to the TI spokes person the that we are just more focus on special segments because it is fast growing market but standard cycle market is going down. Now TI use low cost strategy standard cycle to capture the market shares as Hero cycle Ltd.TI goes in to rural areas it is a big opportunity for TI because in rural areas people have 3 bicycle and in urban areas on 0ne person bicycle from four person.
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29) References:
y y y y y y y y y http://www.herocycles.com/global.php TII Annual Report, 2005 http://en.wikipedia.org/wiki/Transport_in_India#Bicycles Article: Bicycle industry eyes urban market PTI, Nov 1, 2007, 01.07am IST http://articles.economictimes.indiatimes.com/2009-03-29/news/28461898_1_bicycle-industryshiv-inder-singh-firefox-bikes http://www.indianbicycleexporters.com/ http://en.wikipedia.org/wiki/Phillips_Cycles http://www.tiindia.com/article/divisions/12 Case Study TI Cycles: Corporate Strategy (A), by Professor Mukund R. Dixit and Professor Abhinandan K. Jain, Copyright 2002 by the Indian Institute of Management, Ahmedabad.
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30) Appendix:
The History of Bicycle Industry

Innovation Year Country Details 1817 Germany Baron Von Drais invents the "running machine" or Laufmaschine. Patented the following year. Known in various forms as :
Draisine, Draisienne, Velocipede. English version was the Hobby Horse (Denis Johnson). All have two, in-line wheels and the ability to steer. Hand Drive 1821 England Louis Gompertz adds a hand-driven, ratchet mechanism to the front wheel of a Hobby Horse but the innovation, as with Drais' was never really followed up. 1839- Scotland Kirkpatrick Macmillan is traditionally credited with a 1840 machine in which power was supplied to the back wheel via rods connected to treadle-type pedals. Thomas McCall marketed copies; an 1845 version is in the Dumfries Museum. It is questionable whether significant progress resulted from either. Rear-WheelDrive Bicycle 1843 France Alexandre Lefebvre is credited with a rear-drive machine; he took it to America twenty years later and it still exists in the "History San Jose" museum (the earliest extant bicycle?). Pneumatic Tire 1845 England R. W. Thompson invents the pneumatic tire but with no commercial follow-up.
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Treadle Drive
1847 Scotland Gavin Dalzell builds a two-wheeled hobbyhorse with a treadle-drive, possibly copied from the Macmillan design.
Crank-Driven 4-Wheeler
1851 England Willard Sawyer exhibits his four-wheeled, crank-driven vehicle at the Great Exhibition and subsequently becomes established as a Velocipede manufacturer.
Boneshaker Bicycle
1864 France
J. Townsend Trench documents his purchase of a velocipede from the Michaux family. Possibly the first record of a "production" front wheel, pedal-driven bicycle (but note that it was not presented untill 1895). This style became known as the "Boneshaker". Historians still debate the claim of Pierre Lallement that he had previously invented the first pedal-driven machine.
1866 USA
Lallement, now in the USA, gets the backing of an investor, James Carroll, and their patent application is granted; probably the world's first public record of the pedal-powered two-wheeler.
1870 England James Starley products the "Ariel" High Wheeler (aka "Ordinary" or "Penny Farthing"). Later versions had front wheel sizes of upto 5 feet. Wire-Spoked Wheel 1870 England W. H. J. Grout patents the radially spoked, nipple adjusted bicycle wheel (unlike prior load-bearing wheels). Some credit Meyer with this design two years previosly. Ball Bearings 1872 German Friedrich Fischer first mass-produces steel ball bearings, patented by Jules Suriray in 1869.
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Caliper Brake Differential Gear Internal Gearings
1876 England Browett and Harrison patent an early caliper brake. 1877 England James Starley patent a differential gear; probably the first for a bicycle but the principle was not new.
Hub 1878 England Scott and Phillott patent the first practicable epicyclic change-speed gear fitted into the hub of a front-driving bicycle.
Folding Highwheeler
1878 England Grout patents a folding High Wheeler, the first "portable" bicycle. 1879 England Henry J. Lawson patents a rear wheel, chain-driven safety bicycle, the "Bicyclette" (his earlier models were lever driven).
Chain
1880 England Thomas Humber adapts the block chain for use with his range of bicycles.
Safety Bicycle 1885 England John Kemp Starley (James Starley's nephew) markets the revolutionary Safety Bicycle (the "Rover") with a chain/rear-sprocket drive and tangentially-spoked, similar sized wheels. Includes many of the major features of modern bicycles. Seamless Tubing 1886 Germany The Mannessman brothers are credited with the invention of the process to manufacture seamless steel tubing. 1888 Scotland Commercial development of the pneumatic bicycle tire by Dr. John Boyd Dunlop. 1890s France Cycles Aluminium becomes one of the earliest
manufacturers of an aluminium bicycle.
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Derailleur
1896 England E. H. Hodgkinson patents a 3-speed Gradient gear, a precursor of the modern derailleur.
Internal Gearing
Hub 1896 England William Reilly patents a two-speed hub gear. His later 3speed version was put into production by Sturmey Archer in 1902.
Butted Tubes
Frame 1897 England Alfred M. Reynolds takes out a patent on "butted" steel bicycle tubes. 1898 Germany First major commercialization of the freewheel by Ernst Sachs. William Van Anden had obtained the first freewheel patent in 1869. 1910 France The first, easy-to-use derailleur is invented by Paul de Vivie (Velocio) that shifted among four gears at the pedals.
Freewheel
Recumbent
1914 France
Peugeot markets their production recumbent bicycle. Charles Challand had exhibited his "Horizontal Bicyclette Noemale" in Geneva in 1895.
DualSuspension Mountain Bike
1915 Italy
Bianchi produced a folding bicycle for the Italian Army with telescoping seatstays, a leaf spring at the bottom bracket, a spring fork and large profile pneumatic tires. Bianchi now calls it the first dual suspension mountain bike! There are earlier versions of military folding bicycles.
1930 Italy
Tullio Campagnolo intriduces the bicycles hub quickrelease.
Recumbent
1932 France
Charles Mochet designs the Velocar, a recumbent bicycle on which Francois Faure breaks both the mile and
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kilometer records. 1933- USA 1934 Introduction by Schwinn of the balloon tire and "streamlined" bikes which leads to rugged bikes that can take the abuse of teenage boys and which set a forty-year trend. Mountain Bike 1938 USA Schwinn markets the "Fore-wheel" brake, "Cantilever Frame" and the "Spring Fork". Resulted in what was to be the Grandfather of today's mountain bikes. Folding Bicycle 1939 France A. J. Marcelin petents "Le Petit Bi", a 16-inch wheeled folding bicycle, remarkably similar to the Moulton and Bickerton of later years. Shifter 1946 Italy Campagnolo markets the dual-rod "Cambio Corsa" gear shifter (over ten years after the prototype) widely used for atleast a decade. Index Shifting 1949 England The Hercules Herailleur is launched; a rear derailleur with indexed shift levers. Marketed for five years. Derailleur 1951 Italy Introduction of Campagnolo's modern Gran Sport derailleur. 1962 England Launch of the Moulton small-wheeled bicycle with separately sprung suspension and custom tires. Competed successfully in time trials and track pursuit events. String-Ray 1963 USA Schwinn introduces the Sting-Ray that subsequently helped launch the BMX craze. Rear Derailleur 1964 Japan The Sun Tour Grand Prix is marketed as the first slant parallelogram derailleur, a design that has held up till the
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present day. Index Shifting 1969 Japan Sun Tour launch their indexed shift lever, the Five-Speed Click, and a combined freewheel-plus-rear hub, the Unit Hub. Neither of them found a market, and were abandoned. Bayliss Wiley in England has also experimented with unit hubs as far back as 1938. 1970 England The aluminium Bickerton portable small-wheeler is developed. Followed by the successful Brompton in 1976 and Dahon in 1980. Bmx (Bicycle 1970 USA The movie On Any Sunday by Bruce Brown debuts. Although it is a motorcycle documentary, a brief scene during the beginning of the movie shows kids on StingRay bikes emulating motocross. This small spark eventually evolves into full-fledged, organized BMX racing by 1974. Mass-Produced 1974 USA Titanium Frame/Fork Teledyne markets the first titanium bike that was produced in any quantity (Speedwell of England had some Ti production frames as far back as the 1960s, welded by Lamborghini!) Litespeed brought titanium frames to a broader market in the 1980s. 1975 USA The first carbon-tubed, metal lugged frame appears: the Exxon Graftek. Suffered from frequent frame failure. The technology was later perfected by Look, Trek and others. Aluminium Frames/Bikes 1975 USA Gary Klein displays his welded and heat-treated aluminium frames at the International Bike show. Alan (Italy) and Vitus (France) were producing their lugged aluminium frames arround the same time. Cannondale
Motocross)
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launch their "Aluminium for the Masses" in 1983. 1978 USA Fomac Corporation designs the Avatar recumbent. It is one of the many styles that constituted the 1980s renaissance of recumbents which included Lightning Cycle winning the HPV-RAAM relay and Easy Racers breaking the 65 mph barrier. High-Quality Folding Clincher Tire Aerodynamic Road/Track Bicycles Mass-Produced 1981 USA Mountain Bike 1980 East 1978 USA Specialized introduce the first high-quality foldablr clincher tire (the Turbo) which launches the demise of the tubular. Introduction of aerodynamic bicycles with a stable
Germany construction. Culminated in the American "Super Bike" at the 1984 Los Angeles Olympics. The specialized Stumpjumper mountain bike is launched nationwide, capitalizing on the Marin Country vogue inspired by Calofornian icons, Gary Fisher, Joe Breeze, Tom Richey et al. (all of whom also produced earlier mountain bikes).
Electronic Cycle Computer Moulton
1983 USA
Avocet launch the first electronic cyclometer (bike computer).
1983 England Moulton launches his second generation of "space-frame" small-wheeled bicycles.
Clipless Pedals 1984 France
LOOK markets their clipless pedal (following on an earlier track model launched by Cinelli in 1970; the "Death Cleats", no automatic release).
Index Shifting
1985 Japan
Shimano introduces SIS indexed shifting (learning from their inferior product, the Positron, from 1977).
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1986 USA
Kestrel introduces their production non-lugged, carbon fiber frame and Trek market their first lugged carbon frame.
Suspended Mountain Bike
1987 USA
Paul Turner demonstrates a full suspension bicycle with front and rear shocks. Eventually becomes a partner in Rock Shox. Diversified the sport of off-road biking.
Aero Handlebars
1987 USA
Scott USA manufactures the first modern aerobars, originally the brainchild of Boone Lennon. Pete Pensyres had earlier used his own clip-on style bars in setting his RAAM record.
HighPerformance Folding Bike Integrated Brake/Shift Levers Electric Derailleurs
1989 USA
Hanz Scholz designs the Bike Friday "World Tourist". A reasonably compact folding bicycle that matches the performance of conventional touring machines.
1990 Japan
Shimano introduces integrated brake/gear levers.
1993 France
Mavic markets their ZAP electronic shifting. Ceases production in 2001. Possible future follow-up by Campangnolo. Browning Research had invented a prototype electronic system in 1974.
Hydraulic Disc 1994 USA Brake
Sachs (SRAM) introduces Power Disc, the first massproduced hydraulic disc brake system.
1998 Germany Rohloff develops the Speedhub, 14 equally-spaced hub gears which are operated by a twist-grip with no overlapping ratios and a gear range as wide as a 27-speed derailleur system.
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30-Speed Derailleur Drivetrain
2002 Italy
Champagnolo offers a 30-speed derailleur drivetrain with the Record 3-x-10a adrivetrain.
(http://www.herocycles.com/global.php)
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Diversification In To
Two wheeler Industry ( Motor cycle) Tyre Industry Logistics and transportation Industry
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TI Cycle Of India Ltd

10) Product life cycle 11) SWOT Analysis a) IFE b) EFE

TI Cycle Of India Ltd 12) Competitor Analysis .. .. 37

13) Strategic group Map 14) CPM

The History of Bicycle Industry....68

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

5) Porter Five Forces Analysis

TI Cycle Of India Ltd

Is the buyers product or serve a commodity? Is

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Is your product or service a commodity?

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Do new entrants need to differentiate by spending

TI Cycle Of India Ltd

following. 1 = low, 5 = high, or N/A if it doesnt apply to your industry.

TI Cycle Of India Ltd

TI Cycle Of India Ltd

6) Key Success Factors:

TI Cycle Of India Ltd

7) Industry Life cycle:

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Name of the Companies TII EIDP CFL CUL OTHERS

% of turnover 28% 34% 16% 8% 14%

TI Cycle Of India Ltd

TUBE INVESTMENT OF INDIA LIMITED

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Certificates: certified with ISO 9002 & Iso 14001

TI Cycle Of India Ltd

Engineering TI Metal Forming

TI Cycle Of India Ltd

9) TI cycle of India Ltd

a) BRANDS Of TI cycle of India Ltd:

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Brand Names BSA BSA BSA

Model Names Trimgyni Trimgyni Jogger Trimgyni Stepper

10) Product life cycle:

TI Cycle Of India Ltd

11) SWOT Analysis:

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Murugappa group. Brand name awareness 0.07 3 0.21

TI Cycle Of India Ltd

TI representative did not visit hire 0.05 shops Total 1.00

segment of the market

TI Cycle Of India Ltd

market.(China,Tiawan) Competitors focus on its hire shops 0.15 2 3 0.10 0.15

TI Cycle Of India Ltd

TI Cycle Of India Ltd

TI Cycle Of India Ltd

Everest cycles Ltd