Cannondale Corporation Case Analysis.
Cannondale is a product differentiator due to their expertise and innovation in aluminum composite material design and fabrication. Cannondale is based on a vertical integration business strategy, whereas most of its competitors utilize market development and segmentation strategies to increase market share or specialization and single-channel distribution. Cannondale's management is supportive and responsive to any changes in their policies, procedures, and strategies. The management team is bound by 10 principles established as a credo that exemplifies the vision of making Cannondale the best cycling company in the world. Based on current changes in the bicycle market, Cannondale has had to rethink its goals but has not experienced evident resistance to such ideologies and strategies. .
Cannondale has positioned themselves in a highly exclusive, custom bicycle market. They have select distribution channels with specialty bicycle stores throughout America and other international markets that specialize in service excellence and other value added services such as custom fitting and repair. Cannondale consistently strives to bring lighter and stronger frames and component parts to the market. Cannondale reinvests up to 90% of their profits back into the company to underwrite future growth. .
Cannondale, characterized as a prospector by the Miles and Snow Typology, realizes its current goal of producing an innovative motor-cross motorcycle. Using the Product Market Matrix Cannondale's strategy has historically focused on product development. However, Cannondale is attempting a concentric diversification strategy by introducing for the first time a specialized aluminum frame specifically manufactured for motor-cross motorcycles with an industry first, electric starter engine. .
Major Policies in the Functional Areas.
Product Innovation .
Cannondale has distinguished itself as an innovator and leader of high-performance, high quality bicycles and accessories.
