Business Analysis for GBI (Global Bike Inc) Based On 2008 Revenue (Dataset A)

Kayla Fabiano

Niti Mehta

Preeti Sharma

Krushi Kiranraj

Conestoga College

Course Number: MGMT8260 - Fall 2023 - Section 10

Oviri Charles Umude-Igbru

November 20, 2023

 Global Bike Inc (GBI)
Analysis & Recommendation for 2008 revenue

There are 12 customers in both Germany & USA each. Bavaria bikes (DE) Beantown
Bikes (US) & Rocky Mountain Bikes (US) are the 3 highest revenue generating customers in
2008. Ostseerad (DE) & Furniture City Bikes (US) has the least revenue in 2008. Men’s Off-Road
Bike made the highest revenue across both the Countries, compared to other products. The
USA market generated more than 50% of the revenue including both bicycle (BI) and
accessories (AS) divisions. In both the countries, the sales start peaking during the onset of
summer and a declining trend is observed during winter. Record sales are observed during the
1st week of the month and by the 3rd week they are lowest and start to peak towards the end
of the month again. Revenue of US East has the highest and US West is the lowest, Germany
South and North have similar revenue. Revenue generated in Germany South and North is in
between the same range of around 6.6 million to 6.9 million. There is a drastic difference
between the revenue of US East and West, whereas Germany South and North have similar
revenue numbers. The revenue generated by the sales of bike is more in USA and Germany
compared to the revenue of accessories sold in both countries. The revenue generated by the
sales of bicycles and accessories is more in US as compared to Germany. This is not a fair
comparison as bike accessories sell for much less than the cost of bicycles in both countries. To
bolster its competitive standing and revenue streams, Global Bikes Inc. (GBI) should prioritize
high-revenue customers, such as Bavaria Bikes, Beantown Bikes, and Rocky Mountain Bikes,
through targeted strategies like personalized marketing campaigns and exclusive offers.
Simultaneously, GBI should address challenges faced by low-revenue customers, Ostseerad and
Furniture City Bikes, by exploring avenues for improvement, including targeted marketing
initiatives and enhanced customer service. Capitalizing on the success of the Men’s Off-Road
Bike, GBI could expand its product line, implement effective marketing strategies, and explore
bundling options to maximize revenue. With the USA market contributing over 50% of revenue,
GBI should optimize its presence through tailored marketing, expanded distribution channels,
and product customization. Aligning sales strategies with observed seasonal trends and refining
sales timing and strategies can further boost overall performance. Exploring cross-selling
opportunities, customer segmentation, continuous performance monitoring, and investments
in customer experience will collectively position GBI to thrive in the dynamic markets of both
Germany and the USA, fostering brand loyalty and ensuring adaptability to evolving market
conditions. To conclude, to get a better understanding of the revenue numbers, converting the
currency to one would provide a more accurate comparison of the sales figures and provides a
more accurate comparison when looking at what bikes sell better, comparing the quantity of
bikes sold by country would be a more accurate comparison because we are dealing with two
different currencies. Finally, the US and German bike markets are operated similarly, but due to
the difference in currency, it is not a fair comparison when looking at the numbers by sales and
revenue.

Below are graphs displaying revenue by customer, product, currency, country, month, day, sales org &
divisions for GBI in 2008

Revenue by customer in Germany & USA in 2008

3,500,000
(in millions)
3.2
3,000,000

2,500,000 2.4
2.0
2,000,000 1.5
1.5 1.2 1.2 1.5
1,500,000 1.3 1.3 1.1 1.1
1.2 1.2 1.1 1.1
1.0 0.9 0.9
1,000,000 0.7 0.7 0.7
0.5
500,000 0.4

-
Rädlelland
Neckarrad

Ostseerad
Rocky Mountain Bikes

Silicon Valley Bikes

Beantown Bikes

Big Apple Bikes

Motown Bikes

Windy City Bikes

Furniture City Bikes

Bavaria Bikes
Capital Bikes

Red Light Bikes

Cruiser Bikes
Airport Bikes

Drahtesel
Peachtree Bikes

SoCal Bikes

Philly Bikes
DC Bikes

Alster Cycling

Fahrpott
Velodrom
Northwest Bikes

USD EUR
 Revenue by product per Country in 2008

100%
59% 56% 55% 53% 58% 49%
80% 57% 54% 54% 54% 55% 55%

60% 57% 55% 53% 54% 53% 55%

40% 45% 51%

41% 44% 47%
42%
45%
20% 43% 46% 46% 46% 45%
43% 45% 46% 47% 45%
47%
0%
p ck ed lver ads t s ke et ck d er it et rt le ge
um -Bla e-R
Ki ad B i el m la R e S ilv rK hi ike
P - S i P i d P d - B e - - a i e l m - s B ott Ca d B
ri k w A e H k p H T e
ke i ke lbo rs
t e a
Ro oad ke i ke Re er ttl Ro
a
A B i ng B Bi E Fi Kn Bi ng B Bi oa
d at Bo
g i g ff R g i g R W r ff
in r n O rin ur urin e sO
ur ou ouri 's Off ou l To at n'
To xe T T en l T a l T o W e
xe elu xe M
na sion ona om
e lu D e lu io s i W
D s s
D es rofe fes
of P o
Pr Pr

DE US
 Revenue in 2008 based on Country

USA; 15983142;
54%

Germany;
13579983.66000
06; 46%

Revenue by Country for each month in 2008

$4,500,000
$4,000,000 Jun; USA; $3,813,855

$3,500,000
Jun; Germany;
$3,000,000 $2,841,332
$2,500,000
$2,000,000
$1,500,000
Dec; USA; $289,744
$1,000,000
$500,000 Dec; Germany;
$285,013
$-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Germany USA
 2008 Revenue breakdown by day
2,000,000
Highest revenue on 6th
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000 Lowest revenue on 26th
600,000
400,000
200,000
-
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Revenue in 2008 by sales org in Germany & USA

US East $10,438,468

Germany North $6,911,096

Germany South $6,668,887

US West $5,544,674

$- $10,000,000

Revenue by division in each Country in 2008

Bicycle Accessories
USA $15,754,500 $228,642

Germany Bicycle Accessories

$13,395,673 $184,311