When using the joint ventures, some advantages are the opportunity to acquire a local official permission to sell it and the tariff is not so high. In addition, access to technology, access to new markets and customers, and opportunities to learn new skills are some advantages. On the other hand, one disadvantage is that the profit margin is very small. Moreover, the need for cooperation and trust can be considered as disadvantages because it is a co-ownership arrangement in which the foreign and local partners agree to pool resources, share risks, and jointly operate the new business.
When using the wholly owned subsidiaries, the advantage is the tariff is very low and the profit margin is very high. Moreover, it provides a high commitment to international operations. In addition, companies can take control of their supply chain by the use of wholly own subsidiaries. On the other hand, the disadvantage is that an execution error or malfeasance at a subsidiary can seriously affect the financial performance of the company. Each approach can be preferable at a certain circumstances, such as the type of business, globalization opportunity, management style, and the ability to...
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...t more competitive, Woman and young people are becoming more motivated to ride a motorcycle. Moreover, in some countries where the economy is low, there is a big opportunity for sales growing. On the other hand, one of the threats is the continues growing from a small companies with a lower costs. Another threat is that the environmental laws are becoming more and more strict, which could cause a loss of production.
Some of the top competitors are Yamaha, Honda, Kawasaki, and BMW. Harley-Davidson has to maintain the classic styling, feel, and sound of its motorcycles with incorporating modern technology, such as antilock brakes, fuel injection, belt drive, audio packages, and including liquid cooling on some new models. In my opinion, there is risk that Harley will lose focus on its American customer and other customer base in the rush to expand as a global company.
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