Berkeley Haas Case Series

Case Information

DreamCycles: Sustaining Growth
Glazer, Rashi , Hans Grande, Phil Guindi, Joe Karp, and Phil Robinson
Publication date: 6/1/2007, pages 1-15

DreamCycles is an online retail store specializing in high-end road and mountain bikes. After nearly three years of continually growing sales, however, it was not clear whether this sales growth would be sustainable. The company was founded to address a perceived customization void in the bicycle industry. The online store allowed users to instantly configure bikes online, ensuring complete interoperability of all parts, a cost and selection advantages over competitors. As the first mover into this area, DreamCycles also hoped to create a sustainable position that would allow the company to be a long-term player in the market. Despite the early success of DreamCycles, there were major changes happening in the bicycle retailing industry.

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