Sales and Distribution .
All sales of Cannondale's products are through specialty retail stores where knowledgeable store associates can better explain the innovation, performance, and quality of their products. Cannondale's products are not available through mass merchandisers.
Research and Development .
Obviously taken very seriously by Cannondale, research and development is directed towards product improvement and innovation. Engineers use the association with the racing team to gain knowledge of areas that could be improved and they adjust accordingly. Cannondale's innovation is driven by its customer's demands and has invested more than $20 million on research and development between 1997 and 1999. Cannondale held 35 U.S. patents as of 1999.
International Operations .
Cannondale's international operations are mainly sales and distribution fronts, performing only light assembly functions in Europe of imported parts manufactured in the U.S. and exporting fully assembled bikes to Japan.
Cannondale is attempting to recreate their growth as experienced between 1991 and 1992 when domestic demand for mountain bicycles and aftermarket component parts significantly increased. Cannondale believes that the introduction of a revolutionary aluminum-framed motor-cross motorcycle and electric starter engine will spark interest and increase revenue for the company. Cannondale is shifting from a vertical integration strategy to one more analogous with concentric diversification in as much as they have mastered the fabrication and mass production of aluminum frames and custom modifications specific to individual demand or necessity.
Ultimately, Cannondale is attempting to redefine itself in a shrinking market where its competitors engage in a multi-channel distribution scenario with department stores, wholesalers, and large national chain retailers throughout America and international markets, and in a high volume, low cost manufacturing environment.
