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The Economist’s coverage of Giant’s evolution as a company is accurate in some regards, but it fails to adequately explain Giant’s positioning as a firm relative to its competitors, and leaves unaddressed the true nature of the bicycle industry.
The Economist states that there are “in effect no barriers to entry to the bike business” and as a result, Giant “must come up with a further innovation” in order to “survive.” While firms must constantly innovate in order to remain competitive and foster growth, The Economist implies that Giant’s market is almost perfectly competitive and made up of many buyers and sellers (all of whom offer identical products at any given time), and that new firms face no barriers to entry...
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