Company Analysis: Karbon Kinetics Ltd.

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Karbon Kinetics is a company that manufactures light weight and high performance electric vehicles. It was founded in 2002 by Richard Thorpe, who is also the brain behind Go cycle. Go cycle was the company’s first product, and was an instant success. The bicycle has been available to the public since April 2009, and its popularity has continued to rise since then. By 2011, the first generation of the bicycle was entirely sold out. The company has also manufactured the second generation of the bicycles. Plans are underway for the introduction of a black version of the bicycle (About Karbon Kinetics Ltd, n.d.).

Information about Go cycle

Go cycle is an electric bicycle, designed with the urban user in mind. It is light and stylish, meant for cyclists who want to move easily about town, get to their destinations “without grease or sweat on their clothes”. Magnesium is used to make its frame, while other parts are made of nylon which is filled with long glass fibers. The bike is electrically powered, and one presses the power button when riding. When it is powered, the cyclist can stop cycling as the bike takes over from there. One, however, has to peddle and get moving first, as the motor will only work once you get moving (Go cycle: Performance Commuting).

The bicycle has many advantages, the most obvious being that it offers no-emission commute. Its brake system allows one to change gears while moving, and one is able to stop instantly when need arises. Its “cleandrive” gear box is maintenance free, and this means that no grease and oils are used on it. The cyclists will note that their trousers remain clean and have no grease on them. The motor takes over the peddling for you, so one does not get into a sweaty mess after riding for a while (Hall, 2010).

The design is stylish and attracts attention. It appeals to the urban youth, and young professionals who love something classy and sporty. It is light, and its fully charged battery gives one between 10-20 miles depending on a variety of factors. These include; weight, peddling and the wind direction and movement. The bicycle is so popular that it its first generation was entirely sold out two years after it was first put on the market. It was also selected as the VIP cycle in 2009 for the “Tour of Britain”. (About Karbon Kinetics Ltd, n.d.).


Go cycle is popular among consumers due to the advantages they enjoy when using it. The strengths of the bike lie in; its affordability, “cleandrive” experience, environment friendliness and speed. The bicycle cannot be said to be cheap by any standards, but it is a classy and affordable product. Its gearbox does not need to be oiled and therefore, it is not necessary for those going to the office to carry an extra pair of clothes. It is easy on the environment and does not have any emissions. It reaches about 32 kph, which is considered good speed for a bicycle. Go cycle is light and stylish, giving the user a classy experience (Hall, 2010).

The bicycle, however, does not have a firm grip on the road especially when one is turning round a corner. It is also noisy and attracts attention as one rides. The noise is not excessive, but may bother a person who does not want to be noticed as he/she moves about. While it is praised for being light, some people find it heavier than other types of bicycles. The problem worsens if one has to carry the battery charger with him/her, and it is quiet heavy too. The mudguards are also very light and flap about when the wind is heavy or when one rides over a rough patch. Another big concern about the bike is that it is not suitable for long distances (Hall, 2010).

The weaknesses notwithstanding, the go cycle has an opportunity for being a leading brand in the electric motor industry. If its popularity keeps growing, this can be achieved. The brand faces steep competition from cheaper and more efficient electric bikes from China. If other companies produce a very similar bicycle, it could lose some ground in the market. However, its uniqueness as a light weight, classy and efficient bicycle is its selling point and it is only getting more popular.

The product is set to reap from the favourable political climate as governments the world over encourage green technology. Restrictions on the manufacture of eco friendly machines are few, as the move is towards reducing the effects of carbon emissions in the environment. The rising fuel prices have made commuters more restrictive in their spending. High costs in public transport have made cycling a popular way of getting to work (Shahan, 2012). Delays caused by congestion in traffic are also making people prefer alternative modes of transport. These factors are likely to increase go cycle’s market and sales as more people opt to use electric bicycles.

The “green technology” has seen a steady advancement over the recent past, with increasing environmental concerns. More companies are coming up with electric motor devices, as their demand shoots. This has brought increased competition for go cycle in the industry. The biggest competition threat comes from China, which produces electric motor devices on a large scale. The bicycles are cheaper and more efficient, posing a big threat to go cycle’s market share and market development.

Go cycle is manufactured in the UK, and one of the company’s challenges is slow distribution. The product faces an additional challenge in stiff competition in the domestic and international market from other electric bikes. It also needs to overcome high costs of raw materials that are likely to push prices up. In the long run, the company may need to venture into the international market to have a global presence. This will require massive investments. Raising this may be a challenge as accessing credit has become increasingly difficult. The market may become saturated with cheap electric bikes as more companies flood the market with similar products. The company has to prepare for this challenge in the long run.

Go cycle is a product that is poised for greater success in the market, despite the increased threats and competition. Environmental and economic considerations have pushed up the demand for electric bikes. More people prefer to cycle to work especially if the office is nearby (Shahan, 2012). This is to avoid traffic snarl-ups, and the environment conscious ones get satisfied for doing something positive towards the preservation of the environment. The product has a classy appeal for fun seeking urban youth, and young professionals who want to get noticed.

Action plan

The company should be more innovative, and manufacture bikes that are more efficient than the competitors. The disadvantages of go cycle that have been identified by consumers should be minimized. The company should also engage the services of international distribution companies to increase go cycle’s distribution. Constant improvements should be made on the bicycle to maintain its competitiveness.


About Karbon Kinetics Ltd., n.d., 2012, Web.

Go cycle: Performance Commuting, n.d., 2012, Web.

Hall, C 2010, Go cycle Electric Bike Review, Web.

Shahan, Z, 2012, Electric Bicycle Sales to Hit 47 Million per Year by 2018, Report Finds, Web.

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