Economic and Strategic Traits of the Industries and Companies
Some industry factors to consider between Harley-Davidson and Polaris is their diversification, market growth rate, market size, competitive and corporate strategies.
The market of recreational vehicles is very broad and it includes vehicles that are designed for on-road the experience to even off the road experiences. Recreational vehicles include ATVs, snowmobiles, utility vehicles, motorcycles, RVs, campers, boats, jet skis and even trailers. To dominate in all fields of the recreational vehicle industry would be very ambitious and expensive to accomplish.
Our diversification in the recreational vehicle market is truly unique. We provided the first ever motorcycle to the consumer
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Currently, our company holds half the market share in America and one-third market share in the world in heavy motorcycle sales. To speak with figures, our company has currently $14.63 billion in market capitalization while Polaris only has $9.28 billion (Polaris Industries Stock Research). On the plus side, Polaris has a strong international presence and market share with having 69% of Europe’s sales in utility/recreational vehicles, 14% of Australia’s sales and 8% of Latin America sales (PII). Like I stated earlier, Polaris is North America’s number one seller in ATVs which accounted for 69% of Polaris’ revenue.
Our company’s strategy is to sell consumers an experience, not just another motorcycle. We are geared to allowing our customers and potential customers experience what a Harley-Davidson motorcycle is all about. At Harley-Davidson, we don’t consider our motorcycles as automobiles but as a way to get from point A to point B in an exhilarating, exciting and fun way. We are also focusing on earning more market share globally especially in the Asian markets. We are also trying new product launches to appeal to more consumers other than just heavy
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The first one is the broad differentiation strategy in which they utilize by having increasing unit sales more than any other company in ATVs and utility vehicles. They are starting to have a strong customer loyalty especially in the snowmobile and ATV market due to their cost and reliability. On the flip side, Polaris is also using the low-cost provider strategy by effectively producing ATVs, utility vehicles, snowmobiles and motorcycles cheaper than most of the competition but they also have that reliability factor so it’s a win-win for customers. Since Polaris doesn’t utilize one particular strategy they risk on firms taking competitive advantage over another niche if Polaris
In this argument I will be focusing on Fox Car Rental, Inc. as the basis for a systematic analyses of the organization, as I identify the strength, weaknesses, opportunities, and threats to the existence of the organization and its operations. Also, I will be providing three pitfalls to strategic management. In order to facilitate my argument, the use of a strategic matrix analyses will be utilized.
Taming the wildest of these bucking broncos is not for the faint of heart as certain iterations of these freaks of nature pack more than the combined power of 500 of their animal name sakes. With such ridiculous levels of performance, clearly geared at a small percentage of owners capable of controlling such ferocity, Ford and Chevy are left with the daunting task of developing a marketing strategy that attracts a larger consumer base capable of profiting from an otherwise niche product. The strategies employed by both manufacturers encompass many similar aspects both of which ultimately convey a similar...
In the 1990’s, Harley Davidson saw tremendous growth and looked for resolutions to its one problem of balancing production with its soaring demand. In 1996, Harley announced “Plan 2003”. “Plan 2003” was a huge undertaking to increase its production capacity, introduce several new models and increase international expansion. At the end of this planned expansionary period, Harley’s sales had grown tenfold over just 23 years. However in 2007, domestic demand was starting to slip, as several economical factors...
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Charles Hughes, president and CEO of Land Rover North America (LRNA), and his executive committee want to expand LRNA’s reach within North America. Based on the growing strength of the U.S. SUV market, research which suggests consumers are seeking vehicles that can help them have “experiences” while being practical, safe, reliable and luxurious, the success of the Discovery in the U.K. and near doubling of the Land Rover brand worldwide, LNRA is seeking to become the “world’s premier 4x4 specialty company” through effective brand, product and retail strategies. LNRA’s success hinges on making the correct positioning, marketing mix and retailing decisions.
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
After the buyout by Beals, Harley Davidson improved in terms of its productivity after gaining production lessons from the Japanese firm. Furthermore, the company changed part of its marketing move which helped in the improvement in the overall performance of the company. Most people used the logo of the company’s bikes freely and this resulted in bad image for the company. As part of making up and restoring its image, the company decided to license all its logos and any other items that was relating to the company. This helped the company to obtain new customers a part from its already existing customer base. The demand of the products of the company also increased over time after the licensing of the products and the logo of the company. This meant that the company could not satisfy the demand hence this became a problem of its success. The company had also the potential of expanding in terms of exporting ...
Its distinctiveness begins at the very top of the company with the CEO’s and chairman’s of the company. They view Harley Davidson as a family and lifestyle, an experience they want to share with others. One of the most important aspects as to why the product is unique has to do with the consumers who are loyal to such a brand. As stated by one of the CEO’s “it’s a bike that represents America”. Harley Davidson emphasizes that brand loyalty is important whether you’re a consumer, employer, stakeholder, or any part of society. It gives people that idea of riding free, and that it’s America’s patriotic bike. The brand stands for freedom, individuality, expressing who you are, getting out on the open road and adventure, and life to its fullest. Observing for market opportunities and understanding what your consumers want is what keeps the customers happy. Harley consumers are prideful of their bikes, it fits their needs whether they are traditional or not, there is a bike for everyone. Most motorcyclist love the sound of the engine. Harley has hit their products to satisfy all of their customer’s needs. To show how much they stand for what America is today, on the actual bikes, there is an American flag and the eagle. Those symbolic figures are representing the passion and freedom Americans love to enjoy. In terms of the consumers, Harley Davidson is great when it comes to
Over the past decade, the motor industry has faced many of mergers between companies in the bid to get more clients and internationalize their market share. The well planned mergers have arguably led to relative success while those that might have omitted some vital factor have had to contend with the pain of getting into damaging losses.
The lack of competition for Harley-Davidson gave them a profitable advantage and they became quite successful with the sales of their motorcycles. However, by1969, Harley-Davidson experienced some financial hardships through losing ventures and was purchased by American Machine and Foundry Company(AMF). As time went on Honda and Kawasaki entered the U.S. market and by 1981 Japanese motorcycles were viewed as a high performance motorcycle that was also dependable. By 1987, Harley-Davidson was a publicly traded company that has removed its product line into four different styles with a unique engine. Their quality improved as well. Through all the hard times, Harley-Davidson faced they always seemed to bounce right back. (Strategic Management ,
When thinking about motorcycles, Harley Davidson is a name that immediately is thought of. Harley Davidson has done an excellent job of branding and making their products known along with being industry
The American Automotive Industry, popularly known as the U.S. Automotive Industry is one of the most rapidly evolving industries in North America. It is generally oligopolistic with a few players who in the past have been known to avoid price competition among themselves. The industry consists of industries manufacturing vehicles, car parts, replaceable parts and those engaged in assembling parts into complete models. However, the most dominant players in this industry are the vehicle manufacturers. The players design various models, produce the various parts that each model needs and assemble them into a finished product before availing them to the market. General Motors, Chlysler and Ford motors, dominate the U.S. Automotive mobile. They are popularly referred to as “The Big Three”.
When choosing a motorcycle, one is, in effect, choosing into which class of rider he will eventually evolve. I have not yet decided into which class I would like to evolve. For this reason, I have not yet decided what type of motorcycle will be my second. My decision will rest on a careful consideration of the desirable and undesirable qualities of the different classes. Who knows? Maybe I will begin a new branch of evolution and start a completely new class all my own.
Some would argue that its mistakes prove that with the right strategy, any company can overcome the blunders it may have made. The Ford Pinto and Ringwood, New Jersey incidents coupled with the Firestone Tire recall in the recent decade may have impacted Ford Motor Company’s daily operation. However, despite the shortcomings of some of its products and short sightedness of the owner, Ford Motor Company still manufactures high quality products. Ford Mustang, Ford F-150, and the Ford Explorer are some examples of the quality of vehicles that Ford Motor Company can assemble. Ford Motor Company has utilized the value-chain to perfection, exploited an effective corporate strategy, used strategy implementation and control to varying degrees of success, applied an efficient evaluation and control system, and improved its social responsibility with different innovative
To explain the barriers of entry, let us take the example of America's best-selling SUV in 2014 which was the Honda CR-V, for the third consecutive year followed by Ford Escape. These two companies with their immense economies of scale are posing a high barrier to entry for their share of the market. Honda CRV is able to offer the better fuel economy and safety rating without incurring a loss and maintaining the majority of the market share. This makes it difficult for firms like Volkswagen who are leaders in Europe to enter this market.