Business Description

Name

Institutional Affiliation

The proposed form of business

The company will be a partnership company. According to Lin (2014), a partnership business can generate more start-up capital which is essential for setting the structures of the business and buying fixed assets. In the case of NICOGIA Enterprises, partners will share the profit and losses equally hence reducing the financial obligation to one partner in case the operation lead to failure. Besides, a partnership agreement will form the basis for establishing and controlling the relation between the partners. Partners will contribute equally in term of active role-playing and financial contribution.

Market Analysis

Cycling is a social activity that is gaining popularity among many communities as a way of bringing their society together and more so, as a way of leisure. As a result, the market for bicycles is growing perpetually even with an increased appetite for luxurious cars. In the United States, for example, cycling has been adopted as a way of remaining physically fit. Currently, sizeable multinational bicycles manufacturer such as Giant Bicycle, Trek Bicycle, Scott Bike among others have dominated the market. Even then, there is a large market niche which has not been explored by these large manufacturers.

Uncontrollable variables

First, the company will encounter the challenge of the existence of large Multinational Corporations that form an economic threat to the survival of the business. Such huge companies build a threat to the entrants for new firms. Firms that are already established have the benefit of economies of scale and can buy and manufacture bicycles at a cheaper cost compared to a start-up business.

Secondly, technological trends will pose a positive uncontrollable aspect since the company will have to adopt the latest technology to gain competitiveness. To manufacture the most ‘modern and more appealing bicycles for the digital customers, the company will have to implement the newest technology which poses the risk of increased cost.

Third, legislation is a form of the uncontrollable environment in which the company will face in the process...