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SRAM Corporation is a privately held bicycle component manufacturer based in Chicago, Illinois, founded in 1987. SRAM is an acronym comprising the names of its founders, S cott, R ay, and S am , (where Ray is the middle name of company head Stan Day).

In 2008, the company received a strategic investment from Lehman Brothers Merchant Banking, the private equity arm of Lehman Brothers.

History

As a start-up company, SRAM introduced the Grip Shift (or twist shift) gear-change method and technology to the mountain bike market in 1988.

In 1990 the company sued Shimano for unfair business practices, noting that Shimano offered, in effect, a 15-percent discount to bicycle manufacturers specifying an all-Shimano drivetrain and that few companies in the highly competitive industry would be willing to forgo such a discount to specify Grip Shift components. SRAM received an unspecified out-of-court settlement from Shimano in 1991. More importantly, it won the right to compete in the lucrative OEM bicycle components arena.

The years after the Shimano settlement were marked by dramatic growth for the company, as it increased sales exponentially and added other companies to its portfolio. SRAM is a good example of the recent trend within the high-end cycle-component segment of the bicycle industry, where companies seek a position as a "one-stop shopping center" for bicycle frame manufacturers/bicycle brand owners, supplying all or most of parts needed to complete the bike. SRAM now incorporates the former bicycle division of Fichtel and Sachs, Sachs-Huret, and recently acquired component makers RockShox, Avid, Truvativ, ZF Sachs and Zipp (see below).

Results in professional cycling

In the 2008 Giro d'Italia, Alberto Contador rode SRAM to its first Grand Tour victory.
Alberto Contador, 1st overall, 2008 Vuelta a España
Alberto Contador, 1st overall, 2009 Tour de France
Lance Armstrong, 3rd overall, 2009 Tour de France
Fabian Cancellara, 1st, 2009 UCI World Cycling Championships Individual Time Trial, Mendrisio, Switzerland.

Products

SRAM pioneered what it has dubbed a "1:1 actuation ratio" for bicycle shifting, meaning that for any distance a cable is pulled by the shifter, an equal amount of lateral distance is covered by the derailleur. This approximate doubling of the shifter cable travel reduced its sensitivity to dirt contaminating the system, a significant issue in mountain biking.

In their road componentry, SRAM introduced "Exact Actuation" technology, similar in some ways to the 1:1 system. A distinctive feature of SRAM's road system is the DoubleTap lever. The unique aspect of this shifter is the use of a single lever for both upshifting and downshifting, rather than two as both Shimano and Campagnolo shifters require.

SRAM bicycle chains are widely used by cyclists, even those not using any other SRAM componentry on their machine. SRAM chains are often called "Sedis" or "Sedisport", which was the original name given to the bushingless design of Sachs-Huret. These chains have greater flexibility than traditional chains with full-width bushings and are very suitable for the operation of modern derailleur gear systems. SRAM more recently introduced the "Powerlink", a tool-free master link for derailleur gear chains.

Brands

In recent years SRAM has purchased a number of companies to allow it to offer a full component group. These brands are as follows:

RockShox

RockShox, purchased on February 19, 2002, was one of the first companies to introduce a suspension fork for consumer use. Marketing and sales departments were relocated to Chicago, while product development remained in Colorado Springs. A SRAM factory in Taichung, Taiwan was converted to RockShox production after the RockShox acquisition.

RockShox still specializes in suspension products, including:

• Rear suspension
• Suspension forks for mountain bikes
• Suspension forks for pavement usage

Avid

On March 1, 2004 SRAM purchased Avid, a well-known designer and manufacturer of bicycle brake systems and components including hydraulic and mechanical disc brakes for mountain bikes, mechanical disc brakes for road and cyclocross bikes, rim brakes for mountain and cyclocross bikes, brake levers for mountain bike rim brakes and mountain bike mechanical disc brakes, brake cables, and brake maintenance products. Because SRAM recently added road bike rim brakes and brake levers to its product line, they now offer brakes and levers for all types of road, mountain and cyclocross bicycles.

As with RockShox, Avid's product development continued in Colorado Springs while marketing and sales divisions were moved to Chicago.

Truvativ

SRAM purchased Truvativ in 2005, providing SRAM with a line of cranks, bottom brackets, handlebars, stems, pedals, seatposts and chain retention systems. This allowed SRAM to offer a complete drivetrain.

Sachs Bicycle Components

In November 1997 SRAM acquired Sachs Bicycle Components, including a significant hub gear production line, from Mannesmann Sachs AG, a unit of German telecommunications group Mannesmann AG. Sachs had 1,250 employees and annual revenues of more than $125 million. A new state-of-the-art factory was constructed in Schweinfurt, bringing development and production facilities under one roof. SRAM invested over $1 million (U.S.) in new engineering and development resources.

Zipp

On November 6, 2007 SRAM acquired Zipp Speed Weaponry, a company designing and manufacturing high-end carbon wheelsets for use on road-racers, as well as other components such as cranks, handlebars and disc wheels.

Financials

• Sales 1987 $0 million
• Sales 1994 $25 million
• Sales 1995 $40 million
• Sales 1999 $120 million
• Sales 2003 $150 million
• Sales 2004 $160 million (estimate)
• Sales 2006 greater than $200 million
• Sales FY 2007 $318 million
• Sales 2008 (exp) $500 million

References

1. ^ About SRAM
2. ^ ^{a b} http://www.findarticles.com/p/articles/mi_qn4155/is_20000727/ai_n13875164
3. ^ ^{a b} SRAM Announces Strategic Investment from Lehman Brothers Merchant Banking
4. ^ SRAM | News and Events | News
5. ^ http://www.steephill.tv/2008/vuelta-a-espana/
6. ^ ^{a b} http://www.letour.fr/2009/TDF/LIVE/us/2100/classement/
7. ^ http://www.uci.ch/templates/BUILTIN-NOFRAMES/Template3/layout.asp?MenuId=MjExMg&LangId=1
8. ^ http://www.fundinguniverse.com/company-histories/SRAM-Corporation-Company-History.html SRAM-Corporation-Company-History
9. ^ SRAM | News and Events | News
10. ^ SRAM Corporation - Company History
11. ^ Chicago Athlete - Feature Article
12. ^ 2008 SRAM Force DoubleTap Shift Levers - Competitive Cyclist
13. ^ SRAM: A Bike Parts Tour de Force

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