Benotto bicycles: Developing a strategy for profitable growth

Abstract

Giovanni Benotto, the COO of a family business, has to decide among the options to pursue sustainable growth for a Mexican bicycle company of Italian origin. While Benotto is constrained by commoditized products, increasing competition, long lead times, and a shortage of cash, he is aware that sustainable mobility, a healthier lifestyle, and leisure activities are driving demand in the country and abroad. He needs to decide whether to reap benefits from bicycle market segments or take the jump abroad to reach other attractive markets. In the meantime, he needs to balance the need to grow with the internal complexities of a Latin American family business.