The company focuses on selling high quality framesets using the principles of frugal innovation. This means among other things developing a network of suppliers so that the company can react quickly to changes in market demand; developing new frameset designs that are simple, cost effective yet different in a preferred way; developing a network of independent bikes stores (IBS) to become agents of the brand; and executing marketing plans that support and expand the brand’s position in the market. It also means supporting a warranty program, a crash replacement program and ultimately a used frameset disposal service.
Rather than investing large sums of capital in building and owning a mold, the company will use open molds and tube to tube technology to develop framesets that are strong, stiff and light but also distinctive and thus exclusive. This is much less capital intensive and frugal. For example, a manufacturer can use an open mold frame but add some variation in the top tube, down tube or seat tube (a bend or a faring of some sort) that gives the frame a different look.
Ultimately, the company will have its mold with a variety of small manufacturers. This will allow the company to make small orders and allow the factory to derive economies of scale. This will improve flexibility: if one factory cannot match the order, it will go to the next one. If the frame design is simple (a single color, minimum paint job, basic tube design) it will be easy for a manufacturer to ramp up production so that orders can be executed “on-demand”.
Good point on the look and feeling!
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