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The Rise and Fall of Atlas Cycles

Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Case Code: BSTR614
Case Length: 13 Pages
Period: -
Pub Date: 2020
Teaching Note: Available
Price: Rs.400
Organization : Atlas Cycles
Industry :Bicycle Industry
Countries : India
Themes: Organizational Crisis/ Business Failure/ Brand Revival/Turnaround Strategy
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Rise of the Common Man’s Bicycle

According to analysts, it was its quality, attention to detail, affordability, constant upgradation of products, and customer centric approach that had made Atlas Cycles a globally acclaimed brand. Some analysts attributed the company’s success to its large production capacity and its innovative production processes. Atlas Cycles constantly upgraded its operations and products to meet the ever-changing requirements of the global market without compromising on quality and standards. Reportedly, the company’s endless efforts in pursuit of product excellence and its desire to exceed customer expectations won it numerous awards for export excellence..

The Downfall

During the early 2000s, the Indian bicycle market witnessed a dramatic rise in the demand for premium segment bicycles, e-bikes, recreation bikes, and sports bicycles – a market trend that Atlas failed to tap in time. Cycling became more of a social activity and the premium bicycle advanced from being a hobby to a lifestyle accessory as millennials preferred to stay healthy, fit, and trendy. With cycling becoming a hobby among the health and fitness conscious urban dwellers, the demand for premium bikes was booming..

Will atlas cycles bounce back?

However, the company’s representatives insisted that it was not the end of the road for the iconic brand. According to them, the closure of the Sahibabad plant was a temporary phase and the firm would resume production once it was able to raise Rs 500 million from selling surplus land. The company also disclosed that it would pay “lay-off wages” that accounted for 50% of the basic pay and dearness allowance to its 431 employees, for which they had to mark their attendance daily at the factory except on holidays...

Exhibits

Exhibit I: Atlas Cycles’ Founding Family Structure
Exhibit II: Product Segments and Brands under Atlas Cycles
Exhibit III: Atlas Cycles Ads Featuring Women
Exhibit IV: India’s Bicycle Imports from Bangladesh and Sri Lanka (2011-2018)
Exhibit V: Market Share of Bicycle Manufacturers in India (2018)
Exhibit VI: Atlas Cycles: Profit and Loss Statement (2015-2019)
Exhibit VII: Atlas Cycles Sales (2014-2019)

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