Competitive Advantage Opportunity: A Bicycle Repair Case Study
This case study was written for my Value Chain Integration course in Fall 2024. I plan to post future case studies throughout my business school career, as I’ve discovered I’m really starting to love both reading and writing these types of reports. ❤ Adriana
Part I: The Flow Chart
The above flow chart is a routine bike maintenance process (tune-up) that most cyclists have experienced with moderately busy bike shops. The amount of time taken for this process will be diagnosed. We begin with the moment a customer realizes they need to schedule bicycle maintenance, and end with the return of the bike from the bike shop to the customer. For the sake of this activity, we will assume the bike was previously purchased at the same bike shop and maintenance is an after-sale service (primary activity).
The oblong shapes represent terminators, or beginning and end flags, the blue shapes represent simple tasks, the gray shape is where the customer decides, and the pink shapes represent sub-processes. Between each step is the time it takes to get from one step to the next; subprocesses contain timings within the shape.
In total, if a customer decides not to proceed with their maintenance quote, the process takes ~7 days. If a customer decides to proceed with their maintenance quote, the process takes ~15 days.
Part II: Process Analysis
The time it may take from realizing maintenance is needed to scheduling an appointment with the bike shop, may take half a day, assuming the cyclist acts quickly. The scheduled drop off is 3 days out from the request. Assessment occurs the day-of or after a scheduled drop-off and may take a whole day to complete. After an assessment is made, the price quote is delivered by the end of day, or the next morning. After the customer has been contacted and they have accepted the quote, then the bike will go into a maintenance queue. If the customer rejects the quote, the bike pick-up happens within a day. The maintenance subprocess can take an average of 7 days. Once maintenance is complete, then the customer is alerted and pick-up along with payment is completed within one day.
There are two main reasons getting scheduled for an assessment and routine bike maintenance takes two weeks: skilled, available workforce and mechanical complexity. Bike maintenance is not a process that can be automated or sped up. A solid tune-up requires looking at all the functional parts, making micro adjustments, cleaning, lubing, etc.; attention and time cannot be sacrificed. Tightening one screw a little too tight could ruin the alignment of a major part and potentially cause a harmful event for the customer, down the line. If a part is not in stock and needs to be replaced, add on order turnaround time for that part.
Bike maintenance skills are neither standardized nor a part of a recognized trade. There are recognized training programs but no set way to perform bicycle maintenance. Every year bike manufacturers update their technology in different ways to make the bikes more aerodynamic, more versatile, etc. Any specialized skills could be outdated within a few years and there are no unions or institutions to guide the profession — the self-sufficiency at the philosophical core of the cycling community prefers it that way. Those that tend to be the most skilled mechanics have experience, patience, and critical thinking on their side. These soft skills are not common and those who have them are usually the only ones in the shop performing the more complex processes.
Not all shops have that dependable mechanic so, when a shop is known to be good, it is usually sought after by cyclists and getting an appointment can take time and money. Be prepared to wait at least two-weeks for a quality job (more during pre and peak season) or learn to perform your own bike maintenance!
Part III: Competitive Advantage Opportunity
The above flow chart is mostly based off a maintenance experience I had with Mike’s Bikes. Mike’s Bikes is a well-known bicycle retailer and mechanic shop, located in Northern California and Colorado, with 18 shops and 250 employees. MB is dedicated to getting more people on bikes…[and]…committed to providing the best experiences in-store and on your bike1. Customers generally find value in the services and products here. The business is competitive in all areas except time, as seen with the flow chart.
If a customer is willing to pay for maintenance, as opposed to maintaining their own bike, then cost is not usually a major factor. Most experienced bike consumers are willing to pay more, if they know they are going to receive a quality service. This is why tune-ups at Mike’s Bikes can cost upwards of $1751. This pricing is considered reasonable for their quality work.
MB sells and services a range of bike vendors (road, gravel, MTB, electric, etc.); and sell quality brands in apparel, accessories, and components that are sought out by professional and recreational cyclists. Customers know to expect relative flexibility in the cycling products and services offered at this specialized business.1
Mike’s Bikes is known for its quality service provided by their mechanics and staff. Employees are incentivized by generous benefits, bonuses, training, and to be active cyclists (10 cents for every mile ridden)2. Mike’s Bikes has a pro-team that competes in sanctioned races, organizes cycling events, and has their finger on the pulse of the sport. Each shop also offers various types of workshops to the public — some specific to the products they sell. They value and invest in the quality of their services via talent, participate in market research, and are innovative in what they offer the community and customers.1
Time has room to improve. A tune-up does not take days, but the queue does. This could be sped up by having more qualified mechanics available and temporarily increase the size of the workshop to handle bloated bike queues. Temporary workshops could be set up in the store or parking lots. MB could seek out professional mechanics, that come with their own tools and resources, and who are not currently working races or professional events, to fill contract roles. Another temporary talent pipeline could come from creating apprenticeship programs with outside bike mechanic training programs. The expanded, flexible workforce would reduce wait times, without sacrificing the quality of the service. This could also provide much-needed improvements to the bike mechanic talent pipeline and grow greater interest in the sport and cycling professions.
1. Homepage. Mike’s Bikes. (2024). https://mikesbikes.com
2. Careers. Mike’s Bikes. (2024). https://mikesbikes.com/pages/careers