Trek Bicycles: Just a Name or a Summation of Values?
(7 pages of text)
Case (Pub Mat)
In 2007, Trek Bicycles (Trek) entered the Indian market. Although Trek’s market share in India was small compared to its global presence, India held an important position in Trek’s global aspirations, and the country’s potential for growth drove Trek to enter that market. The company strongly believed in innovation and in delivering value to customers through a bundle of services and schemes. Trek operated in the country through a partnership with an Indian distributor and in 2017 set up its Indian subsidiary. The company had a first-mover advantage with respect to the sale of super-premium bicycles in India, but in 2019, after more than a decade, how could the company increase its retail network and grow the community that was connected with cycling?
The case can be used in undergraduate- and graduate-level management courses. The case is relevant in strategic management courses to understand the internationalization strategy of an organization and international corporate and business level strategies followed by multinational companies.
After working through the case and assignment questions, students will be able to
- gain insight into an organization’s international strategy and understand how the business environment influences the firm’s decision about mode of entry and operations in an international market;
- understand how organizations evolve with respect to their mode of operations;
- appreciate different corporate strategies organizations use at the international level to operate, coordinate, and control subsidiaries;
- assess the effectiveness of strategies of low cost and differentiation used by organizations to compete in the industry; and
- understand the approach used in adopting innovative products and making specific value offerings.
Arts, Entertainment, Sports and Recreation
India; United States, Large, 2019
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