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Preparing for Tariffs: Navigating Production Shifts to China for Solé Bicycles

Last Updated: 03/27/2026

Case Organization

Solé Bicycles

https://www.solebicycles.com

Venice Beach, CA, USA

1-10

Case Contributors

Case Disciplines

Corporate Social Responsibility Growth Strategy Legal, Regulatory, Compliance Market Research Operations Purchasing, Logistics, Supply Chain Reporting, Financial Planning & Analysis

Skills & Expertise

Competitive Strategy Contingency Planning Cost Optimization Cost Structure Analysis Cost-Benefit Analysis Demand Sensitivity Analysis Financial Modeling Global Sourcing Strategy Import/Export Compliance Logistics & Operations Planning Manufacturing Strategy Operational Efficiency Pricing Strategy Procurement Strategy Profitability Analysis Regulatory Compliance Risk Management Scenario Planning Strategic Planning Supplier Diversification Supply Chain Strategy Tariff Impact Analysis Trade Policy Analysis Value-Based Pricing Vendor Management
Background & Objective

The challenge or opportunity you are trying to address for the organization.

As Solé Bicycles actively shifts its production to China to take advantage of manufacturing efficiencies, the potential for new tariffs imposed by the Trump administration creates an urgent need to reassess strategy. Increased tariffs could significantly raise costs, impact pricing, and disrupt supply chains.
Learning Objectives

This is what students will learn as they complete the case.

This case focuses on global supply chain strategy, tariff risk management, and cost optimization in an uncertain regulatory environment. Students will develop practical frameworks for navigating geopolitical and economic disruptions while maintaining business performance. 

  •  Understand how tariffs impact cost structures, pricing strategies, and overall profitability in global manufacturing 
  •  Analyze trade policy risk and model different tariff scenarios to assess financial outcomes 
  •  Evaluate global sourcing strategies, including the benefits and trade-offs of manufacturing in China vs. alternative regions (e.g., Vietnam, India, Mexico) 
  •  Develop diversification strategies to reduce overreliance on a single country or supplier 
  •  Assess supply chain resilience, including lead times, logistics complexity, and quality control considerations 
  •  Design cost management strategies to offset increased production expenses without eroding margins 
  •  Create pricing strategies that balance competitiveness with profitability, including value-based pricing and customer perception management 
  •  Identify operational efficiencies (e.g., economies of scale, supplier negotiations, inventory planning) to mitigate cost increases 
  •  Understand regulatory and compliance requirements in international trade, including import/export laws and tariff classifications 
  •  Build a risk management framework that includes contingency planning for future tariff changes or geopolitical disruptions 
  •  Develop communication strategies to maintain transparency and trust with customers and stakeholders during pricing or sourcing shifts 
  •  Define KPIs to measure success, such as cost savings, margin stability, supply chain diversification, and risk exposure reduction
Key Action Items

These are activities and action items you might want to complete in order to achieve the expected outcomes.

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