Scaling out production

Scaling out production: The company scales out production of framesets to More Choice, Inc. through the services of a procurement agent in Thailand. More Choice designs the frames and owns the mold; the procurement agent works on product development, arranging the order, executing it and making delivery; design work and web development and graphic design work is scaled out to services in Asia where costs are much lower; component and wheel set selection is scaled out to the consumer; component and wheelset procurement and final assembly is scaled out to independent bike stores. Ultimately, the company will scale out production to different manufacturers. A key part of the distribution strategy is to scale out to independent bike stores.