Marketing Analysis for small companies

The following sample essay on “Marketing Analysis for small companies”: analyzing of market and marketing strategies for small companies.

According to Taylor’s(2018) research, that because some companies such as OfO that entered the market too early and have begun to close down, their excess bicycles are covered with dust and scattered on open space. It’s easy to see that shared bicycles are becoming fewer and fewer, and even some companies are closing down?Taylor(2018). With the development of sharing bike, life becomes more convenient and large amount of people try to use it, which make the companies gain considerable amount of profit.

Nevertheless, more and more sharing companies can not operate successfully in a long term. In other words, the time of sharing bike will gone, most of the companies will collapse, because they have big problems about their management and economics, which lead them to die.

There may be some problems with the economics of sharing bike?without strong economics , companies will hard to run.

For example, excessive competition will only bring huge economic losses to the company and go bankrupt. Bi gi (2017) indicates that the some companies such as OfO and bluegogo try to strengthen market coverage through price war, operation war or product war, thus ensuring that future competitors have only minimal chances of success. Malicious competition will consume a large part of circulating capital, resulting in economic problems in the operation of the company. However, it also could not attract a great number of customers.

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Financial is the most important foundation of a company, once there is a problem of capital turnover, huge loopholes will appear in the operation of the company.

Besides that, the cost of manual maintenance is too high, company can not afford it in a long term. According to Pham(2018) , Xue yu, an analyst at IDC, a research firm, start-ups, mobike and OFO, also had difficulties repairing damaged bicycles. This makes it difficult for consumers to find available bicycles, and prompts them to turn to competitors.?Pham?2018?Due to people’s indifferent awareness of protection and the low quality of Shared bikes, the damage rate of Shared bikes is extremely high, and the company needs to bear a large number of maintenance costs,which also leads to the rupture of the economic chain and makes it difficult for the company to operate normally. Like Xiaoci.D (2016) tells, According to the Guangzhou Yangcheng Evening News on Tuesday, about 10% of the 20,000 Mobai bicycles in Guangzhou were damaged to varying degrees. Both malicious competition and high cost of manual maintenance, without a strong finance to support, both of it lead the economics get in trouble.

In terms of management strategy, there are certain loopholes both in the control of customers and bikes. At the beginning of bike sharing, the manager failed to properly supervise the people who become to user. Straits Times(2018) points out that OfO bicycles are available for children because their locks only need a four-digit combination, and some users forget to lock the bike after completing their journey, which means that bicycles can be ridden free of charge. The Sharing bike is poorly regulated. Children do not have the ability to be independent, and their actions are not well controlled, including the use and parking of bicycles. In the face of emergencies, it might affect traffic, and even children may be in danger. High compensation fees and the damage of bicycles will allow the sharing bike to fail.

What is more, the parking arrangement did not play a management role, and company have to punished by government. Haas (2019) states that the number of bicycles on China’s streets has led to congestion on the sidewalks, which are no longer suitable for pedestrians, and piles of broken bicycles have been illegally parked Parking always is a thing which is hard to constraint, especially in the case of increasing number of sharing bike. The huge number of user also leads to the irregular parking.The government can only make certain financial penalties to the company, besides their loss on Finance, people’s impression on their brand will be damaged due to disorderly parking. Both of them will eventually lead to damage to the company. All in all, Because of the relax management, companies will be weaker.

Economically, sharing bicycle is a new industry, most of people would like to try, but they did not have a good control of expand .Sharing bike has a large customer base, and which make it easy to raise money. Weissmann(2014)demand that We’ve doubled it. It’s only June now.” “We continue to see people register at about 100 people a day, sometimes even more. Customer decide which business should be exist. And sharing bike is a new industry, which attract a plenty of people use. And because of the huge number of customers, companies are easy to earn money. So they have heaps of money to keep the company run. In addition to this, the capital chain is huge and it can be used for other investments, which can make money quickly. However, for sharing bike high speed to expand, the cash flo w is hard to follow.


Ruishing coffee is a example shows that expand need much money. Specialty food association (2018) Shows that Richter raised $200 million in round B financing, ruisheng coffee is currently operated in 21 major cities in China, with a total of 1700 coffee shops. Ruishing corporate with other companies and rised money by listed stock to make sure there have enough money to expand market. Nevertheless, sharing bike did not do that well in expand. Yan (2018) admits that Industry insiders said the scenario reflected the situation of China’s cash-strapped bicycle-sharing industry. In recent years, China’s shared bicycle companies have been burning money to support rapid expansion.?yan ?2018?Although they get a big market and they can earn money easily, they also have many difficulties. They do not have enough money to run out the market, which make they have a big problem with repair or worker.

Because the worse service and a of damaged bikes, they lose the credit from the customers. More and more customers apply for the cash pledge back, which lead the capital chain rupture. Just like Pham (2018) mentions the chaotic expansion resulted in a string of bankruptcies and huge piles of impounded bikes. If they can not open the market to make more profit, without a steady source of income, it will be difficult to keep fund flow, which leads company collapsed. All in all, rapid expansion leads to bad service. Bad service leads to low profit. Then, low profit leads to another round of expansion. On the whole, money is the basic to development a company, the weak economics it would be difficult to exist.

In terms of management, bike-sharing competitors with other companies, so that they might attract more customers. Also they have some problem on service, which make them lost amount of customers. Pham (2018) points that this partnership enables Ofo’s competitors to reach more users, and enables them to provide users with a variety of services, such as car calls and meals. Cooperation with some companies such as alipay ,which make customers use it more easy, and more people will choose it. Also some company like pham said food delivery and ride-hailing, just use one application, they can do anything they want , it is easy to see, people life will be more simple. Beyond that, service always make a decision if the customers choose you, plenty of big company give a benchmarking example for sharing bike. Haroun(2017)report that Amazon is so customer-centric that it immediately sends you a replacement package for the missing package without hinting that the customer is wrong. Because of the good service, Amazon become the top of shopping online quickly. Nevertheless, sharing bike might did not do it good.

Chan (2019) claim that In response to ST’s inquiry, the Singapore Consumer Association (Case) disclosed that 25 complaints about OfO had been received since January last year. Good management can make employee work hard and more customers will be satisfied. But for some sharing bike companies, they just pay attention on their profit, and less care about their employee. Therefore, the employee do not work active, which lend company have a bad processing system. They can not solve the problem in time, at the last, more and more people will lost patient and give up the sharing bike. Without great of customers, marketing will be hard to keep running. Without a satisfying service to keep customers, companies couldn’t afford to take the step, which also leads to go out of business. `

As discussed above, it is clear that sharing bike has problem with economic and management. Although they can learn some good way to run out of company and make profit, such as they have a large amount of customers, or Cooperation with other companies. But they still have a big loophole which leads to close down directly. Such as malicious competition and rapid expansion. On the other hand, for management, children use sharing bikes, parking problem, bad customer service also cause trouble. Without the experience of management and how to planning for finance, sharing bike is too late to save, and they will go die at last.

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Marketing Analysis for small companies. (2019, Dec 18). Retrieved from

Marketing Analysis for small companies
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