Performance Cycles sells high-performance racing motorcycles. Currently, the company purchases motorcycles from Harley-Davidson and other manufacturers and heavily customizes the frames and engines for racing applications. The company is contemplating designing and manufacturing their own frames from scratch, using engines and other components available in the secondary market.

Required
From a value-chain perspective, comment on Performance Cycles’ new strategy. What segment(s) of the value chain does Performance currently occupy? What segment(s) of the value chain will the company occupy if it pursues its new strategy?