Dirt Bike Usa

remit OF CONTENT I. stain BIKES the States COMPANY I. IS REQUIREMENT AND FINANCIAL PERFORMANCE II. COMPETITIVE STRATEGY III. operational EXCELLENCE 1. rent or buy finis for unenvi fitw atomic pattern 18 and softw be 2. CUSTOMER DATABASE 3. SUPPLY chain of mountains MANAGEMENT SOLUTION 4. E-COMMERCE STRATEGY 5. KNOWLEDGE MANAGEMENT 6. COMPONENT PRICE CHANGES. I DIRT BIKES ground forces COMPANY smirch cycle per seconds USA is territory cycle per seconds re cut intoion fraternity based in California.It was founded in 1991 by Carl Schmidt and Steven McFadden, two young plainly experienced motor roulette wheelrs with engineering science backgrounds who saw that filth bikes were becoming precise popular in the United States as some(prenominal)(prenominal) sporting and racing motorcycles. 1. Goals and Culture * Culture Carl Schmidt and Steven McFadden founded diddly-shit bikes USA. They noniced that blot bike was becoming popular in the United States. They were fou nded on a friendly, family vitrine atmosphere, attention to detail and spirit, and continual learning and innovation.With these values dirt bikes has excelled to oneness of the top companies, competing with the likes of Honda, Yamaha, and Kawasaki. * Goals diddlyshit bikes goals argon real ambitious, and if fulfilled get out bring them to the top of the list. They want to remediate on their values, and products, and innovate pe pelfrating edge technology that forget hopefully propel them to the top. They want to increase sales in both the internal and international market. 2. Products and services * jack rolls does non sell directly to retail clients, relying on a network of 40 distributors concentrated in the Western and Midwestern United States.A small percentage of crap Bikes argon s of age(predicate) in Europe using independent distributors that sell other sets of dirt bikes and motorcycles as well as crud Bikes. foulness Bikes motorcycles, parts, and service, including warranty repairs, stop unless be obtained by with(predicate) an authencetic dope Bikes dealer. All motorcycle and sp argon parts sales, shipping and set-up must be handled by a certified dealer. If a potential consumptioner lives more than than 50 miles from the ne arst authorized Dirt Bikes dealer, the guest washstand get a Dirt Bike or Dirt Bike parts through a certified independent motorcycle dealer.Retail customers hind end get sp be parts directly from Dirt Bikes only by verifying that they live more than 50 miles from an authorized Dirt Bikes dealer. The engines for Dirt Bikes argon Ro tax revenue enhancement engines from Austria and tires are from Dunlop, but m both of their parts, very much(prenominal) as shock absorbers, front wheel forks, exhaust calls, and headlights, are from the United States. Dirt Bikes actually gets four models the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. The two Enduros are endurance racers, while the Motos are for motocross racing.All four are rattling modern, with such technology as both kick and electric starters, expressive style stabilizers, and liquid cooling 3. Organization Carl Schmidt is the CEO of Dirt Bikes USA and Steve McFadden take to hearts as President and COO. The employees of this social club are involved in the de consecrate, engineering and production aspects, and include 3 full- meter designers, 3 full- quantify engineers, 4 full-time parts specialist, and a 10-employee service department. in that respect is everywherely a marketing manager whose channel is to over get a line 5 sales representatives. Overall, the play a languish employs 120 people and has expanded expectantly since the early 1990s.The strengths of this constitution is that production department is divided effectively in smaller parts, they can slowly defy the operations. However, the weaknesses of agreement is moderately hierarchical & small, there are no separate managers fo r service, shipping & receiving, parts and design & engineering and manufacturing. II INFORMATION SYSTEM REQUIREMENT AND FINANCIAL PERFORMANCE Dirt Bikes USA relies heavily on database package such as Microsoft Excel and Microsoft Access. This is to keep track of sales, farm animal, and employee matters.The trump out exchange product of Dirt Bikes USA has been the Enduro 550 and the worst selling product has been the Moto 450. sales by pose Model 2003 2004 2005 2006 2007 Enduro 250 1201 1663 2291 2312 2195 Enduro 550 2832 3290 3759 4078 3647 Moto 300 1755 1932 2454 2615 2627 Moto 450 463 598 661 773 823 centre 6251 7483 9165 9778 9292 In the first three years, international sales were consistently rising from 2003 2005, and then started to fall during the finale two year. They have never contributed more than 10% of the total sales. outside(a) sales have grown comparative to Domestic sales, however, in 2006, there has been a decrease in international sales while domestic sales have as well as change magnitude. Domestic vs. International Sales 2003 2004 2005 2006 2007 Domestic 5723 6843 8254 8889 8530 International 528 640 911 889 762 TOTAL 6251 7483 9165 9778 9292 % International 8. 4% 8. 6% 9. 9% 9. 1% 8. 2% Figure 2 Domestic vs International Sales from 2003 to 2007 Consolidated Statements of Income (in thousands) 2007 2006 2005 Revenue Net sales 60,144 64,063 61,529 make up of goods exchange 45,835 43,155 41,072 Gross profit/(loss) 14,309 20,908 20,457 Gross boundary line 23. 8% 32. 6% 33. 2% Operating expenses Sales and markering 4,733 4,537 3,944 Engineering and product knowledge 3,141 2,992 2,339 General and administrative 1,913 1,601 1,392 kernel operating(a) expenses 9,787 9,130 7,675 Operating income/loss 4,522 11,778 12,782 Other income/expense Interest income/expense 1,747 175 80 Other income/(expense) (6,254) (2,914) (3,080)Income before provision for income taxes 15 9,039 9,782 Income taxes 1,459 1,729 535 Net income/(loss) (1,444) 7,310 9,247 Net margin -2% 11% 15% drumhead Balance Sheet Data At December 31 2007 2006 2005 Current assets Cash and cash equivalents 6,994 7,197 6,891 Accounts reveivable 13,083 12,981 12,872 Inventories 6,315 5,931 5,843 correspond current assets 26,392 26,109 25,606 Property plant, and equipment 36,920 34,515 32,002 Other assets 1,765 1,903 1,834 Total assets 65,077 62,527 59,442 Current liabilities Accounts payable 8,943 8,694 7,592 Accrued expenses and other liabilities 10,877 9,382 8,654 Total current liabilities 19,820 18,076 16,246 Long-term debt 9,772 9,338 8,890 Total liabilities 29,592 27,414 25,136 Shareholders equity 35485 35113 34306 Total liabilities + shareholders equity 65,077 62,527 59,442 The income statement and balance sheet are the aboriginal financial statements commitd by oversight to determine how well a planetary ho social function is performing.The income statement, also called an operating statement or profit and loss statement, shows the income and expenses of a firm over a period of time, such as a year, a quarter, or a month. The gross profit represents the difference between the firms revenue (or sales) and the woo of goods sold. The gross margin is calculated by dividing gross profit by net sales. Revenue is not growing steadily, from 2005 to 20046 the revenue increases at rate of 4. 12% from 2006 to 2007 the revenue decreases at rate of -6. 12%.Cost of goods sold increases steadily from 2005 to 2007, while revenue just increases from 2005 to 2006, and decreases from 2006 to 2007. Gross margin and net margin decreases from 2005 to 2007 Operating expense increases from 2005 to 2007 A company has more current assets than current liabilities, firm has passable working capital to fund investments in pertly products and discipline strategys. Firm has assets to pay for expenses and to finance th e development of impudently products and training system of ruless. III ANALYZING COMPETETIVE STRATEGY 1. VALUE CHAIN OF DIRT BIKE USAThe company provides value to its customers by designing and manufacturing last quality custom motorcycles, and by servicing those motorcycles. Dirt Bikes take top components from different famous suppliers around the world to make sure that each component of their product perform the best quality to customer. This activity make it become a unique spirited musical mode for which company is noted. Moreover, all of Dirt Bikes product are warranty repaires, shipping and set-up must be handled by a certificate dealer, if the customers living within 50 miles from the nearset athoritizedDirt Bike dealers, they can secure a Dirt Bike or Dirt Bike parts through a certified independent motocycle dealer, and so forth. The fact showing Dirt Bikes concentration on providing the best products and services to its customers is that the companys parts and se rvice department is responsible for 15% of the total revenue. Furthermore, the nigh significant secernate to prove that Dirt Bike has provided the best quality products can be analyzen in the numbers of races that this brand wins each year. Besides, focusing on diversity of products is also a reason perform value for Dirt Bike in the high competitive market.The company has produced many forms of racing dirt bike such as racing specifically for different size bikes, for short-change distances, long distances, and even for up to vi days. Currently, Dirt Bike produces the highest value product is the Enduro 550, which is the top selling bike focused toward the dedicated founder and semi-professional racer. By products lines that represent the conveys and request of customers, Dirt Bike has gained the satisfation and trust from its customers. One of the most activities creating the most value for Dirt Bike is advertisement.Most of its advertisement is at racing event or racing m agazines. Although cognise as one of the supplier selling the highest quality to customer, Dirt Bike use a very competitive level of price to against others competitors. Honda 2012 Honda CRF 450R $8,440 Dirt Bike 2012Moto 450 $8,995 The Enduro 250 $3,250The Enduro 550 $7,600The Moto 300 $4,295 Yamaha motocross 2012 Yamaha YZ 250F $7,290 KTM 2012 KTM SX 250 $6,899 Kawasaki2012 KX450F US MSRP Price $8,399 Other ship canal to provide value to customers are the policy of listening to customers feedback on how to improve the product, sharing their experiences and informing the impertinentest products to them through Dirt Bikes USA Owner Group. In addtion to adding value to its products and customers, Dirt Bikes also have a professtional employees who report with customers and show up the high quality as well as the differences of Dirt Bike directly. 2. RIVALS in that location are many company which produce and sell dirt bikes in the world.Among of such a grand competitors, Hond a, Kawasaki, Suzuki and Yamaha represent as Dirt Bikes pristine competitors. Those companies are known for completely custom in-house design. Besdides that, they not only sell products but also the parts of their bikes,which allow them to expand theirs business and control the quality as well as the revenue of company. Furhermore, Having a large Expenditure budget on advertisement friends them build a significant image in customers trust, gain a strong loyalty with long-term customer, appear popular on other retailers websites.Four brands shoould have been consider as the big four threaten Dirt Bikes USA. Honda Advantages * Slimmed -down fuel tanks * Wide-ratio gearing * Electric starting Suzuki Advantages * Loads of mid-range * whippersnapper handling Yamaha Advantages * Lightweight frame * Lightening- quick handling * Smooth power delivery 3. FACTORS INFLUENCE DIRT BIKE INDUSTRY * Internet the fast development of Internet is al ways a good sign for society and all manufacturing process whole the world. However, it is also considered as a potential threat of any industry, not except dirt bike.The ease of access allows Dirt Bike as well as other competitors to search the selective culture of lower price supplies, high quality but cheaper parts as well as labor or advance advertisement. in that respect is the selfsame(prenominal) pedigree for all compaies, therefore, it is hard for Dirt Bike to make the differences from other exitsting competitors as well as new potential competitors who are going to step into this subdivision. * Economy situtation There is no exactly prediction roughly the world in the future, especially the current economy in Europe is not a optimistic view for Dirt Bike when its the largest market is some in those Western countries.When there is a recession, people tent to geld their demand in leisure activities as a outlet, the revenue of dirt bike industry will steadily decrease. * The policy of goverment It can not deny the r elationship between economy and politic. Lower tax on import goods and service as well as afforable tax income, so forth are factors can determine the supply and demand of dirt bike industry. When governemnt carry out the tighten policy, selling those products will get the big trouble. * Taste of customer Taste is also an important factors influent on dirt bike industy.It is very simple to see that switching hobby from using dirt bike to other vehicles will cause a headache for producer to motivate their customer to spend gold on unnecessary procucts. * Quality When Dirt Bike came into this industry, it made a promise on providing high quality and services to its customerl therefore, it must keep its promise as its competitive emolument against others rivals. * New competitors a market with many competitors will also cause some problems to existing company in dirt bike market. The organization as well as strategy will change along with behaviors of new enterprises. . COMPETITIVE S TRATEGY The most sui put over strategy that Dirt Bike USA should follow is low-cost Leadership. As we know, it has 4 big competitors who make Dirt Bike have to apply the most enchanting strategy to gain more loyalty, disport from customers as well as keep its market segment in long term. Others set the higher prices for their products as the claim on the quality. If Dirt Bike could produce such high quality products but sell at an attractive price, this competitive advantage would help Dirt Bike become unique in this industry.Moreover, Dirt Bike should apply some methods to improve its business besides the Low-cost Leadership * Firstly, Dirt Bikes is known as one of the highest quality suppliers in the world. Its warranty on satifation of customer with Dirt Bikes products is its competitive advantage and it should continue to make use of this advantage to expand its business to others segment or others countries. It can do the same as other rivals by selling the parts to satisfy f ull demand of customers or expand its business to ATV or road motorcycles, which will help Dirt Bikes revenue as well as gain a smash profit. Secondly, Dirt Bikes alsmot sell its products through its distributors. The information they keep is just information virtually those distributors not its customers. another(prenominal) way to improve its business is develop its information system. Set up a large source of information about about all customers not only help Dirt Bike with managing customer profile more easily, sp holding out takeed information faster but also bring out a great bridge to build a long-term relationship with customer. * Finally, it should spend more funds and time in advertisement, especially E-commerce.Its website should be redesigned to make customer as well as employees has a clearly look at all products it is selling. Providing more detail, technical information, comparision to others same line products. Those essential information has to be uploaded on the Website, beautiful and clear design to help customer more knowledgeable about products they would like to buy and support employees when they talk about products customers would like to know or they would like to sell. What is more, Dirt Bikes should invite famous riders to ride advertise for their products. This method will raise the trust in customer more. . INFORMATION SYSTEMS WOULD BE SUITABLE FOR THE CHOSEN STRATEGY * CAD/CAM technology allows engineer and draftspeople to design systems. * communication and collaboration systems allows all employees to communicate effectively and efficiently via e-mail, voice mail, call center and others. * Data warehouse allows managers and knowlegde workers store huge amount of data that can be easily accessed and dodged for decision support. * Mobile reason systems supports mobile employees who work with cusomer or business partners outside the physical boudaries of the organization.Supply Chain Management System This system may allo w the company to manage their inventory levels more efficiently. * * IV OPERATIONAL EXCELLENCE * develop a website privacy policy developing a web site privacy policy There are some kind of personal information the website can collect in stray to serve customers well such as name, address, email, bid numberthese database can be collected through baffle form If customers order products, the company requires personally identificable information. With these database, the company will deliver products exactly and on time.Email is very useful to provide services for customers. For example, a customer has a problem about his product, he can send email to service center to get the help instead of going to the company, or when the company has promotional campaign, it will send information to customers to announce about the news and encourage customers to buy new products. Surveys or contests Participation in these surveys is completely voluntary. The requested information certainly inc ludes butt against information. Clickstream, web bacons he company can use information collected from clickstreams to well understand about what customers are provoke in, what they need since the company set up plans to satisfy customers or provide services they needs. Although the website collects customer information and uses them as marketing and business purposes, it is ensured that security is very important to the company. When customers enter sensitive information such as social security number or credit card number on order forms, the company always warrant that information is encrypted by using secure socket layer technology (SSL).Additionally, not share personal information to the third party is a goal of the company. 1. Improving decision fashioning Making the rent or buy decision for hardware and software system a. Rent or purchase software 2 accedes preceding(prenominal) shows that the cost of purchase software is less than the cost of renting hosted software. Thus, purchasing software is the best solution b. Strengths and Weaknesses of renting vs purchasing Rent PurchaseStrengths -cheaper cost -alternative new software easily-having most of the required features- marginal IT staffs -free management to deal with products core competence forever-have guaranteed appreciation over a time period time-minimal IT staffs Weaknesses -limited time using-limitation on the software customization-uncomfortable when the software is out of date-frequent software updates-long term reliance on vendor support -expensive cost-expense when alternative new software-limitation on software customization-incompatible with company needs-frequent software updates-long term reliance on vendor supportIf the company rent software, it can change into another software when the old one doesnt fit company needs. The cost paid for rented software is cheaper than purchased software, so the cost for ever-changing does not take much as well. Suppose the rented software is not out of date, the company also does not barren available resources as well as the money spending. Software is usually sold in a package. The company has to buy full package even though it may not use all the functions. Thus, the company will waste the big money for spending useless functions of the software which is going to be released.Otherwise, the company has free management to deal with softwares core competencies forever. The company do not need to concern about time using as renting. That is uncomfortable when someday the software is out of date but the company still need to use it, the manager will have to sign a new contract for continuously using. That affects to companys operations and waste time. Renting and purchasing need to be updated frequently to ensure that they always fits to company demands, hence both of them rely on vendor support in long term. Additionally, limitation on the software customization need to be con sidered as well.The company rent or purchase any software, it just has authority to use this software for helping the business to run effectively. It is not allowed to transfer or copy into many versions to sell. However, minimal IT staffs is a strong point of both renting and purchasing. Software helps the company to handle well with a large information that human can not do although amount of staffs is large. c. Other factors need to be considered (beside cost) * Duration of need (long term or short term) If the company want to use in short term (usually under 6 months), then renting is optimal solution.In contrast, purchasing will be the best solution if time using is over 6 months (long term) * Compatibility Software run on iphone can not run on android. That is example about compatibility. Similarly, Microsoft 2010 can not run on window XP SP1, SP2, sooner than they are window XP SP3, win 7 or later * Friendly interface Software that is aristocratic to use will increase effici ency for the company. * Efficiency Microsoft 2007 is better than Microsoft 2003 because Microsoft 2007 has more functions than Microsoft 2003colorful interface, beautiful templates.Furthermore, social function 2007 can open XML files which are files of older office versionMore functions are shown on ribbon. That helps users manipulate right away. * Supporting The software should provide support for common tools used for the volume digitization of paper documents and integrating with other devices that generate digital documents such as fax servers. 2 CUSTOMER DATABASE Dirt Bikes USA does not sell its products directly to retail customers however, these transactions are primarily made through its distributors network.The information of a customer will be collected by the companys distributors when this sale is made. This database is then forwarded to Dirt Bikes. Figure 1 Customer Database collected from distributors. Figure 1 shows the customers information that distributors forw arded to Dirt Bikes. This table includes many kinds of information customer name, address (street, city, state, and zip code), telephone number, model purchased, date of purchase, distributor, customers interests and tastes (their ages, level of education, and ducky sport), and their attentions to racing events.Storing all the information at only one place is so complicated and when it develops into thousand-record table, it is touchy to manage all information effectively. Moreover, it may take a lot of time to withdraw a piece of data as needed. To be able to market aggressively, therefore, the database needs to be redesigned. The new database will include tables and reports that allow the company to know certain information about the customers. The Marketing department would also like to be able to keep the customers updated on certain events, such as races and sales, depending on their ages, education level, and their previous purchases.Using Microsoft Access program (version 2 007), the database that we designed is very simple to use, yet very effective. From the main database (Figure 1), 3 sub-tables are adding and each table manages 1 kind of information withdrawing from the main data. Figure 2 distributer table The table shows the list of distributors names and their IDs. Managing distributors information by their IDs can avoid confusions and help tone up this information easily and quickly. Figure 3 Model table This table shows the models of dirt bike that the company produces and sells in the market.Each model is managed by 1 ID. Figure 4 Purchase table This table show previous purchases. Each record comprises Customer ID (the customer that made this transaction), Model ID (model ordered), date purchase of such transaction, and Distributor ID (distributor that made the transaction with the customer). Purchase ID is the primary key of the table. Figure 5 relationship between 4 tables. This figure shows the relationship between 4 tables Customer tabl e (main table), Purchase table, Model table, and Distributor table.Specifically, Customer ID is the primary key in Customer table and in Purchase plank Customer ID is the foreign key. Model ID is primary key in Model table and the field with the same name in Purchase table is foreign key. Distributor ID in Distributor table is the primary key and is the foreign key in Purchase table. All these relationships above are in one-to-Many eccentric because the primary keys of tables of Customer, Distributor, and Model can appear many times in Purchase table. It means that one customer can make many transactions with many distributors and buy many models as well.Figure 6 Identify repeat customer by query. This table shows the way we design query to count the number of transactions that customers have made so far with source is Purchase table. innovationd on the result of this query, we can report frequent customers of Dirt Bikes USA. Figure 7 Repeat Customers. This figure shows the proce ss that we create report of frequent customers. Customers that bought more than 1 product of the company will be reported with their names, phone number, model they ordered, dates of purchases and the distributors they bought dirt bikes from.Besides knowing who are valuable customers that the company needs to take good do of, Marketing department can also recognize effective distributors to give them acknowledgements for their good jobs (rewards, bonus, etc. ). Additionally, more reports can be added to better suite the needs of the company. Several reports that may be of need to Dirt Bikes USA are hasten events report, which show customers are avid racers, as well as the ages of the customers. down the stairs are some examples of the reports needed by the Marketing department of Dirt Bikes USA. Figure 8 Racing events.This figure shows the way we made report of Racing events. The report shows customers that will attend racing events. This information is useful to Dirt Bikes USA because it enables the company to notify customers of when certain racers are being held. This way, the customers are awake(predicate) of races and events that they are interested in attending or racing in. Figure 9 Customers ages, Education levels, and darling sports This figure shows the way we design the report of Customers Ages, Education Levels, and favorite sports. The report allows the Marketing department to see their customers tastes.It can also help the company know which group of customers they are serving. From this information, Dirt Bikes USA can improve their performance in Customer services as well as improving its products designs and quality to fit customers interests. 3 SUPPLY CHAIN MANAGEMENT SOLUTION A supply chain is outlined as a network of organizations and business processes for procuring materials, transforming raw materials into intermediate and finished products, and distributing the finished products to customers. Fulfilling orders on time is becoming increasingly harder for Dirt Bikes.This is due to the delays of obtaining certain parts to the motorcycles, especially their fuel tanks. This is a austere issue because this could lead to loses in sales because customers do not want to wait so long for their orders to be filled. Finding a different fuel tank supplier is very necessary. In resolution to the supply chain problems that Dirt Bikes USA searched for alternate suppliers on the internet. There are three viable alternative suppliers that were found Company Location Cost of part Cost of shipping Motosport. com Gresham, OR 97230 $247. 9 Fedex free 2days Motocyle-superstore. com Medford, OR 97204 $273. 99 lay off ground Xrsonly. com Hesperia, CA 92345 $249. 95 UPS 3 day $26. 39 The worthy choice is motosport. com. They have the cheapest price and their website guarantees 30 day price matching. The shipping is not only free but 2nd day by Federal Express. The motosport. com website also looks more professional, and has a co ntact page that shows a picture of their administration offices, and the address of their warehouse. It is possible that Dirt Bikes USA could be assisted by implementing supply chain management software. Logility Voyager SupplyPlanning Wolin Design Group da Vinci Features Maximize probabilitycost for effective solutions- Optimizing sourcing and decision making. Helps balance resources, constraints and customer service levels. Analyses of customer orders-Evaluate be and revenues Easy to report cost of effective solutions- Free training- Allows implementation of all or one applications- Optimizing resources. Helps balance resources, constraints and customer service levels- Analyses of customer orders Dirt Bike USA should also invest in good supply chain management software.The figure below compares the features of The Logility Companys Voyager Supply Planning software with Wolin Design Groups da Vinci software. The suitable option is the da Vinci software. There are some reasons for this, first of all, the company does not require the purchase for all the components of the software a company can choose to buy only certain applications. There are even add-ons to the standard software package. Before the company purchases the product, they are allows to do a establish with employees from Wolin Design Group.If the company is not satisfied with the product, the company will not have to purchase the software. erst the demo is complete and the company purchases the software, the implementation process begins. There is a Help Desk that can do any questions or fix any problems that may arise. The actual software package itself provides Dirt Bikes with great services. Da Vinci is a whole database where every part of the ordering, financing, and inventory side of the company can be kept. It allows tracking of the products and shipping aspects.Inventory Management and other reports are easy to access because of the tracking. There are reports for the profit, reven ue and costs of Dirt Bikes, as well as management reports. The reports help with the decision making and the daily success of the company. The software also tries its best to minimize the cost of building the bikes and the all around costs in general. Voyager Supply Planning software is a great option, but da Vinci provides services that are more suitable for Dirt Bikes USA. 4- E-COMMERCE STRATEGY Internet is becoming more and more popular in modern life as well as in business.E-commerce is an useful application for seller and purchaser to reach their willingness.. Almost everyone has a computer with internet connection. By having a website, Dirt Bikes would be able to expand its business better because it will reach out to many people. Customers will also ascertain it more convenient to do their shopping online. The customers have more time for choosing products and the shopper has a chance to read about all the different kinds of bikes. It also enables them to compare bikes to one another, as well as see pictures of all of them. E-commerce allows the company to be more competitive.Dirt Bike should sell not only motorcycle but also parts on the Web, the customers will have more option when looking its website. Advertisement about the new products, popular product on the front page of the website is also a good way to attract customer. Although there are many benefits from E-commerce, Dirt Bike has to face with risks that derive from online trading. * Buyers from all over the world may use fake or stolen credit cards and online payment accounts or they outright lie about delivery. Many claim non-delivery or damaged goods in order to get refunds.This is turn makes it costly for sellers, as they are faced with the reality that now they have lost both their inventory and money. * Sellers may take money without ever sending any product or forwarding subscript goods to the customers. * When a company accepts a customers credit card and personal data, unless the business takes measures to protect that information, data is easily stolen through hacking, making both the seller and the buyer vulnerable. Solutions for better E-commerce strategy One e-commerce company that provides clarified services is NetSuite.It allows a small to medium company to be managed completely on this one software. approximately of the services website and web store building and hosting, built-in analytics and reporting, low-cost customer service, and superior e-commerce marketing tools. In order for the e-commerce software to be a profitable investment for Dirt Bikes, the cost savings need to increase. The increase should be more than the company has made in the past, and then some because of the cost of the e-commerce software. Advantages * Managed exclusively on on Software. Website and Web store building and hosting * Built-in analytics and reporting * Low-cost customer service * Superior e-commerce marketing tools 5 KNOWLEDGE MANAGEMENT The most important explicit knowledge of Dirt Bike USA assets are its engineering designs, its customer relations management, and its sales/marketing processes. This is the explicit and silent knowledge, most of the knowledge can be documented. The engineer can graph his or her design and the customers or sellers can save their information in their documents.There is also tacit knowledge, the designers have to think about the new ideas to refresh the products and attract people, the engineers have to think about the techniques to deal with employees and customers as well, they have to think the ways to increase the employees productivity, some tricks that can be used by the sellers to persuade the customers to buy their products. However, the knowledge assets of Dirt Bike is not only internal asset but also external assets. The Dirt Bike use outside engine manufacture so it has be knowledgeable about the engine products that are produced and developed by their engine suppliers.The marketers also use outside media to know about the market trend, the customers interest to increase the investment from outsiders to expand the company. association management system is the system that would contain as much information as possible that can be documented and organized, from raw data to data studies. The system brings many benefits for employees and company itself. The engineers can use the data from this system for the correct engine designs and knowing whether the engine products from the suppliers are qualified are or not. The designers can use the data and get the materials for the products.The marketers can use external and internal data for making marketing plan and getting investment. The sellers can use the data for market segmentation, and determine the time for selling suitable kind of product. The managers can know the information quickly to update about the new plan, new economics trend to have better react. Finally, the company can get the products feedback from customers, make the survey about the customers interest. With many benefits from the friendship management system Dirt Bike need to use it but the problem here is how can they find he Knowledge management system company that suitable for them? The appropriate knowledge management system for Dirt Bike is Safeharbor (http//www. safeharbor. com/solutions/knowledge-management-services/) it has almost everything that suitable for not only Dirt Bike but also many different companies. Its Knowledge Engineers work directly with the companys teams to help with some or all of the following nitty-gritty assessment, Content creation and testing, Analysis and reporting, Contact center alignment, Taxonomy, Best practices.It has some functions that other companies do not have like multi-language which is necessary for the company to have agencies in different countries, multi-currency for faster transaction and Boolean search for faster searching. The company has 3 competitive advantages simple and intuit ive, powerful and customizable, cost effective. It provides Internal Knowledge base * Powerful Search Engine. * Easy Article Creation and Content Management. * Powerful Knowledge Base Management Tools. * Improved Agent Effectiveness * Moderator Controls. * Reporting & Analytics * Cloud Mobility. External Knowledge base highly Customizable. * Intuitive Self Service. * User Feedback. * Community Forums. Component Component No. Source Unit Cost Quantity Extended Cost Brake cable M0593 Nissin 27. 81 1 27. 81 Brake ride M0546 Harrison Billet 6. 03 2 12. 06 Brake pad M3203 Russell 27. 05 2 54. 10 Front halt pump M0959 Brembo 66. 05 1 66. 05 Rear brake pump M4739 Brembo 54. 00 1 54. 00 Front brake caliper M5930 Nissin 105. 20 1 105. 20 Rear brake caliper M7942 Nissin 106. 78 1 106. 78 Front brake disc M3920 Russell 143. 80 1 143. 80 Rear brake disc M0588Russell 56. 42 1 56. 42 Brake pipe M0943 Harrison Billet 28. 52 1 28. 52 Brake lever cover M1059 Brembo 2. 62 1 2. 62 T otal cost 657. 36 * Integrated Help Desk and Call Center. 6. COMPONENT PRICE CHANGES The table above shows the cost when it is not affected by any impacts. However when the front brake caliper increased from $103 to $107,the extended cost would increase, too and if the brake pipe increases from $27 to $30 the extended cost increases. The brake system represent 30 percent of the total materials cost for one complete Moto 300 motorcycle.Therefore, not only does the cost of the brake system increase, but the whole motorcycle price. Brake Pipe Total Cost 657. 36 27 28. 00 29 30. 00 103 653. 64 654. 64 655. 64 656. 64 104 654. 64 655. 64 656. 64 657. 64 Front Brake caliper 105. 00 655. 64 656. 64 657. 64 658. 64 106 656. 64 657. 64 658. 64 659. 64 107 657. 64 658. 64 659. 64 660. 64 The table shows the total cost increase when the price of the brake pipe and front brake caliper increase. Finally when the front brake caliper and brake pipe increase up to $ 107 and $30 th e total cost increases to $660. 64. REFERENCES