Made in Portugal

: the bicycle phenomenon

Abstract

This dissertation is a pedagogical case study focused on the Portuguese bicycle manufacturing industry and its context in Europe. Hence, the case is an opportunity to apply management frameworks like Porter Diamond and understand the clusters’ role in a specific industry. In 2019, Portugal was the largest bicycle manufacturer among European Union members, after a constant production increase over the years, which was meaningful in a mature industry. Therefore, the thesis purpose is to understand how Portugal could become so competitive and reach such position. Portuguese two-wheel industry was spread between Braga and Vila Franca de Xira with a very relevant firm concentration in Aveiro region which contributed to domestic rivalry. Portugal had entrenched the industry knowledge from historical specialization, skilled labour force and high technological machinery. Besides product quality, Portugal could provide competitive prices due to lower labour costs than other European competitors. As well, Portuguese firms were flexible by providing short lead times to European clients and attending to their personal needs. Portugal Bike Value, a project to acclaim the national bicycle manufacturing industry, promoted firms’ internationalization, attracted FDI and created a Portuguese product identity. Nevertheless, the industry was changing as electric bicycles gained relevance and manufacturers invested on producing them, however Portuguese industry was not yet the leader on this segment and had path to pursue.

Date of Award	30 Jul 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)