mission statement : advocate cycling in the los angeles community with a sustainable and stylish...
TRANSCRIPT
Mission Statement: Advocate cycling in the Los Angeles community with a sustainable and stylish bicycle.
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Los Angeles Bamboo BicyclesFilm and Theatre Arts Charter High School
Business Summary
• Located in South Los Angeles• Bamboo bicycles
- Light weight, fast, stylish, and sustainable
• Non-profit business- Scholarships- Bicycle safety workshops- Promote bicycles and cycling lifestyle.
Business Description
• First Los Angeles Bamboo Bicycle Shop
• Sustainable product• Better-priced than
competition• Social Media & local
promotion• Built & sold at school
• Competition-• Local: DTLA Bike Shop • Direct Competition: Bamboo Bike Studio
• Advantages of L.A. Bamboo Bicycles-• Only bamboo bicycle distributor within our area• Eco-friendly• Natural • Sustainable
Industry Analysis
2009 201113,600
13,800
14,000
14,200
14,400
14,600
14,800
15,000
15,200
Number of Bicycle Riders in one area over two days
in LA.
Number of Bicycle Riders
“The Los Angeles County Bicycle Master Plan has been updated and approved today, and includes plans for 832 miles of new bikeways, as well as over $330 million in funding to be spent over 20 years on improving access to and the safety of bicycle transit in L.A.“-www.laist.com2.28.12
Market Analysis
Marketing Strategies
Flyers , Spoke Cards , Stickers Social Media (Facebook, Twitter)Partnerships with local bike shopsBicycle Maintenance Free Products with bicycle purchase Test Rides
Operations Plan• Measure cyclist dimensions.• Prepare/fit bamboo together with epoxy resin.• File/sand lugs after epoxy resin dries.• Assemble components to complete bicycle.
Company name
Location Bamboo bicycles
Stock Parts
Maintenance Local Focus
Los Angeles Bamboo Bicycles
Los Angeles
Yes Yes Yes Yes - Student-run - Eco-friendly - Raises awareness for bicycle safety in community - Raising funds for student scholarships
DTLA Bike shop
Los Angeles
No Yes Yes Yes - Not student-run - Not eco-friendly
Bamboo Bike Studio
San Francisco
Yes Yes Yes No - Not student-run - Eco-friendly
Competition of Los Angeles Bamboo Bicycles:
Variable Cost Prices For Individual Parts (Stock Single-Speed Bike)
Part Individual Piece
Total Piece
Price (total)
Handle Bars $20 2 $40 Neck Stem $25 2 $50 Fork $25 2 $50 Hand Grips $10 2 $20 Seat $15 2 $30 Spacers $1 5-10 $10 Seat Post $15 2 $30 Crank $45 2 $90
Pedals $20 2 $40
Chain $12 2 $24
Rims $120(set of two) 2 $240
Tires $20(set of two) 2 $40
Inner Tubes $6 2 $12
Lights $7 4 $14
Helmet $20 2 $40
Bottom Bracket $25 2 $50
Total $780
Financial Projections 2012 2013 2014 2015
# Of bicycles
# Of frames
20 bicycles
35 frames
40 bicycles
50 frames
60 bicycles
65 frames
80 bicycles
80 frames
Price/bicycle
Price/frame
$1,600
$550
$1,600
$550
$1,600
$550
$1,600
$550
Revenue $51,250 $91,500 $131,750 $172,000
Variable cost/bike
Cost/frame
$1,100
$320
$1,100
$320
$1,100
$320
$1,100
$320
Fixed cost $700 $100 $100 $100
Total cost $33,900 $60,000 $86,800 $113,600
Profit $17,350 $31,500 $44,950 $58,400
S.W.O.T.Strength:- Only Bamboo Bicycle Shop in Los Angeles- Eco-Friendly Bicycles.- Student-run business
Weakness:- Customers concerned bamboo might break- Bicycle that have lower prices
Opportunities:-Partnership with local bicycle shops-Location expansion
Threats:- Local bike shops- Cheaper bicycles- Manufacturing defects
Weaknesses/Threat SolutionsWeaknesses:
- Customers concern bamboo might break
- Cheaper bicycles elsewhere
Solutions:Have customers test a
bamboo bicycleBusiness expansion=
lower prices
Threats:- Local bicycle shops- Budget bicycles- Manufacturing defects
Solutions:PartnershipDonations from business
reducing priceConstruction training
Conclusion
• Main product: Bamboo bicycles• Local bicycle shop in Los Angeles• Student-run• Eco-friendly• Non-profit business• Fundraise for scholarships and bicycle operations• Host and promote community bicycle rides
Q & A