Cannondale's knowledge and manufacturing skills enabled the company to be a first-mover and trendsetter.
Promotion .
Cannondale's involvement with Volvo to support a mountain bike racing team has been beneficial to them. The team has won numerous awards since its inception in 1994, including four World Championships, two Pan Am games gold medals, and a silver medal in the 1996 Summer Olympics. In 1998, Cannondale reached a licensing agreement with Tommy Hilfiger to produce a Hilfiger mountain bike that is sold through Cannondale's retailers.
Purchasing .
Aluminum tubing is their primary material and with the wide availability of aluminum and diversification in vendors, Cannondale enjoys good pricing, good delivery terms, and certain technical assistance. Since aluminum tubing is its primary raw material, Cannondale's cost structure is subject to change with any swings in the aluminum market.
Marketing .
Cannondale is distinguishing itself as the leading high-performance bicycle brand in the specialty bicycle retail chain, focusing on their innovation, performance, and quality. Cannondale's association with Volvo to sponsor an award-winning mountain bike racing team and its innovative website have been significant contributors to its marketing efforts.
Manufacturing .
Cannondale's flexible manufacturing system has enabled them to cost-effectively produce a wide product line and a broad range of models in a single day in order to respond to customer demands. Cannondale's system reduced its lead-time from 17 days to 3 days from order to the completion of a bike. Its computer-guided laser tube cutting system allows Cannondale to custom-fit bikes for its customers. Cannondale believes one of its greatest strengths is their vertically-integrated manufacturing process, allowing them to control the speed of manufacturing, protect proprietary designs and information, and change product designs and instantaneously introduce those changes to the market-place.
