Reference no: EM133257275
Open Road Gear, the Canadian female motorbike clothing retailer has a lot to be proud of. What started off as a humble Aurora, Ontario company in 2015 that produced tough and durable biker wear for its winding roads, Open Road Gear has risen to become a multinational business with over 20 stores across North America and Europe. Other retailers have tried to tap into the women's biker gear market. Harley Davidson, Peugot, Bavarian, and Indian Motorcycle are a few companies that have sold biker wear. But so far, they haven't captured Open Road Gear's market share.
In a competitive biker wear retail market, how did this small company rise to such greatness? Marketing experts agree that Open Road Gear (ORG) offers something unique: a high-quality product for female motorbike enthusiasts. Open Road's product is known for its superior design and high quality. The company, whose sales staff are referred to as "Educators," have a clear focus on the customer. Its customer service is superior and it appeals to the target market. Open Road may be big, but it is not selling an undifferentiated product to the mass market.
Beyond a quality product, interest in the company has grown using social media. ORG is well entrenched in the motorbike community. Clearly, strong community ties have resulted in less advertising costs. The company never had to do any commercial advertising. All the marketing is done "word-of-mouth". The only place you'll see ads is in Motorbike publications and websites.
Open Road Gear, of course, is not just selling motorbike clothes, it's also selling a lifestyle. You can see it in its stores and its slogans. On a typical day, its employees are busy helping customers and developing a unique shopping experience. Customers, mostly women, are called "guests," ranging in age from young teenagers to senior citizens. In addition to the motorbike gear, there is a growing range of fashionable 'after the ride' clothing.
Open Road Gear has become part of a lifestyle trend that attracts consumers from their early teens to their 70s. The company communicates the idea that investing in your 'open road spirit' and sharing the freedom of the open road with friends is important. Part of this lifestyle is also seen in its slogans such as "Invest in the ride, not in the stock market" and "Ride, Be active and Have fun".
Strategically, the company has also done something else differently. The company uses a "scarcity model," keeping inventory supplies low. This creates the "fanatical shoppers" who return often to the store. The company does not offer many sales. The products and images are premium quality compared to the relatively lower end comparable motorcycle clothes available at such retail chains as Harley Davidson or Bavarian. The company's reputation for quality and authenticity is one of the reasons customers are very loyal to ORG.
In many ways, the company's approach is similar to that of Apple. It keeps improving its clothing features, leathers, and fabrics, and customers show their appreciation through their ongoing loyalty. Clearly, Open Road Gear is focused on its customers and their love of motorbiking and a free and active lifestyle. The number of people that engage in some form of motor biking and sports has risen rapidly in North America. It is evident that ORG has been able to appeal to this growing market. Certainly, the value and popularity of the brand is growing.
What's next for Open Road Gear? The company has started to expand into traditional apparel as well as 'after the ride' clothes to appeal to a larger customer base. In 2021, ORG decided to develop a men's clothing line to appeal to all riders. The greater challenge is keeping the company's image of "specialness" while appealing to the mass population. The specialness of any brand is hard to maintain when it becomes mass- marketed and more readily available across the market. That sense of being part of a niche community starts to erode when the group has grown so big that it includes the broader consumer market- which is what happened to the Gap (in the mid-90s), and to Starbucks (In the mid-2000s).
1. Analyze the motorbike clothing industry as described in the case above using Michael Porter's five-forces model. You may make/add reasonable assumptions as you deem necessary but please identify your assumptions (note: too many assumptions = poor analysis; you're essentially rewriting the facts).
2. Conduct a VRIO analysis of Open Road Gear.
3. Synthesize 1 & 2 analyses into a SWOT analysis.
4. Discuss which of the three kinds of generic business-level strategies you think Open Road Gear is employing and should employ.