MX Bikes (MXB)
MXB is a successful public limited company with many stakeholders. It has been trading for 15 years and makes a range of bicycles.
(a)(i)Identify one stakeholder of a business.
Options
To grow the business and improve the sustainability of operations, MXB expanded its product portfolio by launching a range of electric scooters.
(a)(ii)Explain the term sustainability.
MXB is currently the market leader for mountain bikes in country J.
(b)(i)Refer to Fig. 2.1. Calculate MXB's market share of the mountain bike market in country J.
MXB is a successful public limited company that makes bicycles and has recently launched a range of electric scooters. MXB's business objectives are reviewed regularly by Rani, the Managing Director.
(b)(ii)Explain one reason why MXB's objectives may change.
MXB is a successful public limited company that has been trading for 15 years, making a range of bicycles and is market leader for mountain bikes in country J. To grow the business and improve the sustainability of operations, MXB expanded its product portfolio by launching a range of electric scooters. This is a new and expanding market in country J, targeting the urban youth market.
(c)Analyse one advantage and one disadvantage to MXB of growing by launching a new product range of electric scooters.
MXB's high-quality mountain bikes are sold at a high price to high-income leisure users, in a limited number of specialist bicycle shops. Rani, the Managing Director, is concerned that MXB's sales of mountain bikes have declined by 12% over the past year. Demand for mountain bikes in country J has remained static. She has asked the Marketing Director to recommend extension strategies to increase MXB's market share.
(d)Evaluate how MXB can change its marketing mix to extend the product life cycle of its range of mountain bikes.