Well, this discussion on Schwinn sure has blossomed all over the place !
Some more opinion points from me.
Agreed that Schwinn did not adapt to market conditions as fast as they should have. This is where Specialized and Trek jumped right in. Market conditions and trends today are much more quicker and variable than they were 25 years ago. It is up to a company to be on top of what is happening now and what customers want. As noted, look at Apple and their IPod. It still seems sad to me to have seen the collapse of a family run company that provided a broad based variety of products . It seems a bit like what Ford is still like and how Toyota is eating theirs, and GM's, lunch. Toyota is providing 'hybrid-type' vehicles and good value for your dollar. Ford keeps putting out full page newspaper ads for their Escape Hybrid SUV which uses a Toyota hybrid engine. They are not innovating but following.
Since I have been out of the bike business for 10 years, I am a consumer who wants the best value for my money. I do a lot of comparison shopping before I purchase anything. Bike buying customers do the same thing . I believe that a sale for an independent bike dealer may come down to either whatever the customer can get for their bucks or the personal relationship the shop/salesperson has with the customer. I frequent my independent local hardware store as much as possible because, regardless of the price, I know that I can depend upon them for advice on whatever job I am working on. There is NO personal relationship at your local Home Depot or Lowe's. The independent bike dealer has to establish personal relationships with their customers in order for them to keep returning and keep them in business.
My next door neighbor only patronizes bike shops to keep his road and ATB going. My other neighbor bought his $1200 road bike via mail order and continues to buy anything for his bike that way. The latter is the bane of the local dealer.
My point(s), excuse the length, is that a company must innovate in order to survive. Schwinn did not and Specialized and Trek ate their lunch. As mentioned above, look at Scion cars, the Honda Element, Honda Ridgeline pickup truck, and others. Sometimes you have to come out and make a statement to differentiate your firm from others. To me, a Ford F-150 is a boring bread and butter truck. The Ridgeline is a bold move away from that. Specialized made a bold move with the Stumpjumber and look where they went. Trek offered lightweight USA build road bikes, challenging the European makers. Schwinn just went plodding along . It is sad to have seen what happened to them, but, as Specialized has long advertised, "Innovate of die".