Abstract

The case describes how VAAST Bikes based in the US planned to grow the company in a non-conventional way by making environmentally friendly sustainable bike frames using magnesium. The case also touches upon the company’s Vibrant Cycling Ecology Pledge that promised to operate the business mindfully with environmental responsibility at the forefront of all its business decisions and actions. Next, the case describes in detail the various products that VAAST launched. The bicycle company targeted all segments of customers and offered city and urban bikes, all-road and mountain bikes, road bikes, and urban and youth bike models. To further prioritize its environmental responsibility, the company introduced its first e-Bike known as the E/1. On March 16, 2023, the company won a sustainability award at the inaugural FIT Sport Design Awards for its road bike, the R/1. VAAST further focused on adopting sustainable delivery packaging and put in place an entirely plastic-free bike packaging. It used 100 percent recyclable materials made from recycled products. The new packaging was implemented across its complete line of bikes at the company’s cost. Does VAAST Bikes have a sustainable business model in place? What challenges could VAAST Bikes face in growing its business?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Describe how a late entrant can establish itself through a focus on sustainability
• Examine the various benefits of integrating sustainability into a business
• Identify how different business functions can adopt sustainable practices in their operations
• Recognize the role of partners in building a sustainable business model
• Describe how a late entrant can establish itself through a focus on sustainability

Keywords

Sustainable enterprise; Climate impact; Climate action; Product Design; Product Innovation; UN Sustainable Development Goals; SDG9; SDG12; SDG13; Sustainable packaging; Sustainable manufacturing; Market entry strategy