Published On: Tue, Nov 21st, 2017

Detroit Bikes External Analysis with ValueMags

ValueMags is a marketing and distribution agency for magazines based out of Chicago, Illinois. Recently, their research team has been conducting research about start-up companies in the United States that have niche markets. That way, ValueMags can include them magazine promotions and suggest them to magazine publishers/content creators. One of those companies is Detroit Bikes. They have had many external factors affect their grown over the years.

Detroit Bikes primary threat has been the Detroit economy. Detroit is coming out of a Chapter 9 bankruptcy. The reasons for their (and Detroit’s) bankruptcy included declining population, high pension costs, lack of funds to cover city services and as a result, and the worst school system in the country. The 2007-2008 financial crisis only contributed to that build up. Bikes relied on discretionary spending, which fluctuates with economic conditions as well. Detroit has an increasing aging population unlike Chicago and other thriving cities. As for the niche cycling industry says ValueMags, Detroit Bikes is taking a hit because there is a lack of paved roads between rural areas and city areas (lack of bike paths). Also, the weather in the Northern U.S and Canada, bicycle riding is only a reliable source of transportation 6 months out of the year (not ridable during winter).

Despite their downs, ValueMags sees potential for Detroit Bikes. By 2016, an estimated 100,000 people were set to be working downtown, the majority being Millennials and the NHL’s Detroit Red Wings have brought positive attention to the city, and quadrupled bike paths. Not to mention that the company has had a significant amount of success in finding trained workers since Detroit used to be a manufacturing car city. ValueMags sees a lot of potential in the company and is looking forward to seeing them featured in a magazine in the near future.

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