Ya, the cynic in me just sees a bunch of executives around a table reading a report from KPMG, commissioned with the sole goal of finding unique ways to earn more for shareholders (and themselves). The report probably said that buying a company like Ohlins would earn them a valuable growing asset. That Ohlins makes great products, has a huge amount of built-up goodwill in the market and could very easily and quickly generate more revenue by simply streamlining and simplifying the product line and current products to reduce costs and overhead while increasing profit margins. An injection of marketing funds and corresponding production, sales and distribution support could bring them closer to the sales of Fox and Rockshox.
Of course, this would all be at a detriment to the unique products they make at their current quality levels. They would become just another FOX/Rockshox making basically the same thing. Further analysis would happen upon completion of these goals. The most likely outcome scenario being: to keep cutting production costs while brand identity is still strong to maximize profits. Then once the asset begins to fall away from peak market share, the products quality deteriorates and customers begin to learn that there is nothing special or unique about the products anymore, let alone anything better than the competition and begin looking elsewhere... sell to the highest bidder.
For some reason I doubt the executives of Tenneco simply want to make cool unique, niche suspension products for mtb'rs.
But hey, I could be, and hopefully am, wrong...
In the meantime, I'm just excited for my new bike with an MRP Ribbon Air!
Nov. 26, 2018, 3:23 p.m. - IslandLife
Ya, the cynic in me just sees a bunch of executives around a table reading a report from KPMG, commissioned with the sole goal of finding unique ways to earn more for shareholders (and themselves). The report probably said that buying a company like Ohlins would earn them a valuable growing asset. That Ohlins makes great products, has a huge amount of built-up goodwill in the market and could very easily and quickly generate more revenue by simply streamlining and simplifying the product line and current products to reduce costs and overhead while increasing profit margins. An injection of marketing funds and corresponding production, sales and distribution support could bring them closer to the sales of Fox and Rockshox. Of course, this would all be at a detriment to the unique products they make at their current quality levels. They would become just another FOX/Rockshox making basically the same thing. Further analysis would happen upon completion of these goals. The most likely outcome scenario being: to keep cutting production costs while brand identity is still strong to maximize profits. Then once the asset begins to fall away from peak market share, the products quality deteriorates and customers begin to learn that there is nothing special or unique about the products anymore, let alone anything better than the competition and begin looking elsewhere... sell to the highest bidder. For some reason I doubt the executives of Tenneco simply want to make cool unique, niche suspension products for mtb'rs. But hey, I could be, and hopefully am, wrong... In the meantime, I'm just excited for my new bike with an MRP Ribbon Air!