Few managers to successfully manage their companies from outsourcing to OEM-branded manufacturer of consumer marketing expert and Tony Lo, CEO of Giant Manufacturing Co. Ltd., is currently the largest manufacturer of bicycles in the world. In the mid-1980s, a giant made more than a million bikes a year with huge brand in less than 15% of them, and in 2008 the giant produces 6.4 million bicycles with 70% of the book Giant brand. And in 2010, the transition was still underway as CEO Lo experimenting with new business models for women cyclists in Taiwan and around the world - to use some of the lessons learned and the giant complex others. The case examines the historical evolution of the giant outsourcing to OEM-branded manufacturers who relied on forward integration giant building a world-class, global retail organizations. Giants ability to understand the customer and move him / her to the market has resulted in a growth in sales and profitability (for example, the average selling price in 2006, 2007 and 2008 were $ 325, $ 345 and $ 360 respectively). This provides a basis for the latter problem Lo: the knowledge that his product does not meet the needs of female clients (including, in particular, his wife). As a result, Lo asked his CFO Bonnie Tu to open the first all-female bike shop in Taipei (owned enterprise, rather than the traditional retail organizations),) and charged her not only to ascertain the needs of women customers, but required it to make a profit. "Because your clients are only women, if you do not know how to sell them, then you are a business time. So you experiment on survival," said Lowe. Finally, consider the case in the ongoing integration of the company's retail stores, looking closely at Liv / giant pilot and an amazing business model that it developed. "Hide
by Willy Shih, Ethan S. Bernstein, Bernstein Small Hout, Jyun-Cheng Wang, Yi-Wei Ling Source: Harvard Business School 15 pages. Publication Date: April 16, 2010. Prod. #: 610096-PDF-ENG
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