Cannondale is a product differentiator due to their expertise and innovation in aluminum composite material design and fabrication. Cannondale is based on a vertical integration business strategy, whereas most of its competitors utilize market development and segmentation strategies to increase market share or specialization and single-channel distribution. Cannondale’s management is supportive and responsive to any changes in their policies, procedures, and strategies. The management team is bound by 10 principles established as a credo that exemplifies the vision of making Cannondale the best cycling company in the world. Based on current changes in the bicycle market, Cannondale has had to rethink its goals but has not experienced evident resistance to such ideologies and strategies.

Cannondale has positioned themselves in a highly exclusive, custom bicycle market. They have select distribution channels with specialty bicycle stores throughout America and other international markets that specialize in service excellence and other value added services such as custom fitting and repair. Cannondale consistently strives to bring lighter and stronger frames and

Cannondale’s flexible manufacturing system has enabled them to cost-effectively produce a wide product line and a broad range of models in a single day in order to respond to customer demands. Cannondale’s system reduced its lead-time from 17 days to 3 days from order to the completion of a bike. Its computer-guided laser tube cutting system allows Cannondale to custom-fit bikes for its customers. Cannondale believes one of its greatest strengths is their vertically-integrated manufacturing process, allowing them to control the speed of manufacturing, protect proprietary designs and information, and change product designs and instantaneously introduce those changes to the market-place.

Cannondale is attempting to recreate their growth as experienced between 1991 and 1992 when domestic demand for mountain bicycles and aftermarket component parts significantly increased. Cannondale believes that the introduction of a revolutionary aluminum-framed motor-cross motorcycle and electric starter engine will spark interest and increase revenue for the company. Cannondale is shifting from a vertical integration strategy to one more analogous with concentric diversification in as much as they have mastered the fabrication and mass production of aluminum frames and custom modifications specific to individual demand or necessity.

Inventory Turnover Ratio 3.46 2.79 3.37 3.04

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