what a business stratefy js Zane's Bikes using? explain why you think this by listing a few key points of that strategy. do you think it will countinue successful why or why not

MINICASE 2 Who sells the most bikes in the Bradford, Connecticut. area? If you guessed Sears, or Wal-Mart, or any, of the large retail outlets, you'd be wrong. The honor goes to Zane's Cycles; an - independent; bicycle; shop run by its founder Chris Zane (See achioving annual revenues approaching $1.75 million. Going with Trek meant significant outlays in capital expenditures hiring more staff, implementing operating and controls systems, even investing in a new facility to handle the Trek inventory. Photo) Chris Zane started the business nearly 20 years ago when he was a 16-year-old high school student. Is there a secret to his success? If there is. It's his ability to plan well and execute those plans." A small bike shop competing against large retailers seems an unlikely recipe: for success. But Chris was resourceful. When two competitors went out of business, he negotiated a deal with the phone company. He agreed to pay the remainder of the two companies' Yellow Pages advertising. Callers to either of those numbers heard not only "The number you are calling is no longer in service," but also, "If you are in need of a bicycle dealer, Zane's Cycles will be happy to serve you." By pressing zero, the caller was automatically-transferred to Chris! Trek's contract also called for Zane's Cycles to sell a minimum of 125 bikes each year. Failure to do so would result in the distributorship being revoked. As Chris's business grew, he needed to maintainhis"smallbusiness"appeal,buthealsoneededtoexpandhisofferingstomoreorderingcustomersaquestionnaireaskingtheirheight,in-seam,andtheirbike-riding Trek's requirements were demanding but Chris felt he was up to the task. He had built a business on customer service and he was confident that his service component would assist in this venture, too. For example, in the past; Zane provided free refreshments to customers visiting his store. He offered lifetime warranties on all bikes he sold. And for any small item, like a tire-valve cap or a chain link, he simply gave the product away. In fact, he charged for nothing that normally sold for under $1. effectively compete against larger discount habits. He recognized that "one size fits all" retailers and a growing bicycle mail-order didn't apply to the Trek bikes. When this business. After evaluating his company's information was returned, Zane Cycle strengths and weaknesses, Chris decided to employees used it for custom-building the bike become a 'distributor for premium bike and the bikes were then shipped nearly manufacturer Trek. To become a distributor, completely assembled. The few parts that Trek would require Zane's to agree to some needed to be assembled-like the handle bars demanding requirements. For instance, Chris and the pedals-were accompanied by detailed would have to ship assembled bikes directly to _ "how to install" instructions and a 24-hour 800 customers. These shipments would have to be 100 percent perfect-no quality problems would be acceptable and deliveries would have to be made in a competitive period of time. Furthermore, Zane's Cycles would be required number to call with any questions. In its first year; Zane's Cycles achieved 184 percent of the Trek goal, and did not have one quality complaint. Shortly thereafter? Trek named to have ample inventory at all times. Zane's Cycles as its exclusive distributorship. These contractual requirements implied Chris knew that an organization must major changes in Chris's business. At the time, always be looking for new ways of doing husiness. Hetalso.recoonized that a compank. Chris, that differentiation comes in the form of service, speed, and quality. For example, his competitc.'s take nearly eight weeks to ship premium bikes to customers. At Zane's, from order to customer delivery, it's two weeks. To date, Chris Zane's plans and actions have allowed him to achieve his goal of growing the company. He now has more than 40 employees, with more than $5 million in annual revenues. His next step? Take the company to $12 million in annual revenues in the next five years