Strategic management

By using this Case study, can you identify and apply the concept of Internal Analysis (value chain analysis)?

In 1993, Australian professional cyclists Anna and Cadel created Bike Frenzy", a bespoke bicycle shop, where high end,one-of-a-kind bikes were made to order. They claimed that no two bikes were ever the same. Bike Frenzy appealed to wealthy clients who wanted their bicycles to be the centre of attention. These clients were prepared to pay significant amounts of money for one-of-a-kind bicycles. After a rapid growth phase during the early 2000s, Bike Frenzy sales started to decline around 2010. New players had entered the market and were now competing with Bike Frenzy. Anna and Cadel needed to act in order to save their business. In 2011, Anna and Cadel made the decision to purchase Budget Cycles, a successful company, selling entry level bicycles to the mass market. Two years later, they purchased Fast Cycles, a company specialising in racing bicycles. To manage these companies, Anna and Cadel set up a parent company called AC Bikes. Anna's profile as a professional cyclist was boosted in 2012 when she won gold at the London Olympic Games. Everyone wanted to come and meet the great cyclist. Sales grew rapidly, especially for racing bicycles. By 2015, Anna and Cadel were in trouble. They felt like they no longer knew if they were bespoke bicycle producers, or just retailers to the mass market. In fact, the original business, Bike Frenzy, was now a small part of the business, contributing only around 20% of total revenue. Budget Cycles and Fast Cycles were now bigger than the original company, each providing around 40% of the total revenue