Buy R Bikes

1
Buy R Bikes

• Shareholder Presentation 2007
• Jeremy Thorbahn Scott Duncan Maggie Palmeter

2
Agenda

• Strategy and Past Results
• SWOT Analysis
• ----The strength of our position in this industry
• Objectives for the future
• Recommendations for reaching these objectives
• Closing Remarks

3
Strategy

• To service a wide consumer base with a low price,
  high volume strategy
• Introduced 3 bike models
• Mountain, Road and Youth

4
Key Results

• Marketing Steady increase in sales
• Operations Increase in capacity
• Financial Continued increase in
  profitability ratios

5
SWOT Firm Characteristics

• Strengths
• High Shareholder Value 31.05
• Tremendous growth recently
• Well established as provider of low-cost bikes
• Weaknesses
• Late to introduce Road bike model
• Low retailer margins
• Low awareness ratings

6
SWOT Industry Characteristics

• Opportunities
• Most competing firms have low SHV
• Potential untapped markets
• 8,000 Road bikes and 20,000 Youth bikes
• Threats
• b.a.c. BikeWorks has grown SHV 51.45
• It is unlikely that Buy R Bikes will be able to
  surpass this dominating firm

7
The Future of the Firm

• Two objectives
• Increased sales
• Increased shareholder value

• Recommendations
• Increase margins, production, branding and
  advertising aggressively.
• Repurchase stock regularly and pay out small
  dividends.

8
Closing Remarks

• Strong past
• Recent growth has been strong suggesting a good
  future for the firm
• Good position in the industry
• Low competition, well-integrated strategy, room
  to expand!
• Favourable conditions for growth
• High risk, high reward recommendations making use
  of the firms strong foundation