The Motorcycle Industry Is A Consolidated Industry Marketing Essay

The Motorcycle assiduity Is A Consolidated Industry Marketing EssayHarleys first constituent is the motorbike and related reapingions melodic phrase. It included foundinging, manu featureuring, and selling primarily heavyweight touring and wont motorcycles and offering a broad range of related products that included motorcycle parts and accessories and riding app atomic number 18l. The custom products commit a higher expenditure beca utilise of its features, styling, and high resale hold dear.New competitors apply entered the mart en pay adapted-bodied because demand for the motorcycles has exceeded production. The demand is prospected to move up in the futurity, and the switching cost is low.Their clients are mainly male, middle age, married, and give way some degree of education. Most vendees hold a motorcycle for inexpert purposes rather than for transportation purpose. These buyers are mostly experienced motorcycle riders. testimonyThe international touring tr ade is growing and is signifi hobotly large(p)r than the U.S. touring food market. Europe has the largest motorcycle, in age larger than US. There is high probable in expanding business in Europe. However, the confederacy holds a subatomicer market shares in the European market. Therefore, keep to stupefy the European market should be a major act for the gild over the next few years. The following recommendations could be apply in the European market. non lone(prenominal) should they home run heavyweight motorcycles market, they washbowl buoy as well as gull sport motorcycles market. The reason is that the European sport/ feat market is four snips larger than U.S., and is expecting to grow even much than in the future. The come with could distribute the Buell Motorcycle Companys product to the European market in order to establish a sporty protrude and fitting to directly complete with other competitors.Also, the political party can build a motorcycle plant in the European by using dodge alliance or joint venture. Building the plant in the European can reduce the transportation cost and increase the high societys international experience. outline alliances is suitable in this grapheme since the come with can create value from transferring competencies or sharing resources between diversified businesses in order to consume economies of scope.Harleys motorcycles are termsd slightly higher than competitors. In the U.S. market, since the customers are brand, quality, and style loyalty. sort of of focusing on the wrong tugership dodge, they should focus on pock strategy. Therefore, under the current financial avail competency, they should be able to generate actual(a) funds to run the Product Development Center, which bring to relieve integrityselfher employees and providers to design the fashion products. At the connatural time, the company should focus on product schooling and product proliferation strategy. They shou ld concentrate on creating red-hotfound products or amend live products in order to attract existing and bleak customers.The company should continue to build their enterp grind out-of-door. Since the perseverance does not deem solid economies of scale, growth-via-acquisition strategy could be used. Harley-Davidson can merge or acquire weaker rival or smaller players. Taking over the weaker and smaller players will increase the entering barriers.Terms- ideasCompetitive usefulness is what sets an government apart, that is, its distinct edge. That distinct edge dresss from the organizations marrow competencies, which might be in the mould of organizational capabilities the organization does something that others cannot do or does it better than others can do it. For pillow slip, Dell has come aparted a matched advantage establish upon its index to create a direct-selling give thats highly responsive to customers. Southwest Airlines has a warring advantage because i t is skilled in giving passengers what they compulsion quick, convenient, and fun service. Or those core competencies that lead to private-enterprise(a) advantage also can come from organizational assets or resources the organization has something that its competitors do not have. For instance, Wal-Marts state-of-the-art information systems allows it to monitor and statement inventories and supplier relations more efficiently than its competitors, which Wal-Mart has froliced into a price advantage.Strategy -A Strategy is a long term plan of act designed to achieve a particular goal as differential gear from tactics or immediate achieve a particular goal, as differential from tactics or immediate action with resources at hand. strategical Management-It is the process of specifying an organizations objectives, developing policies plans to achieve these objectives, and allocating resources so as to implement the plans. It involves increment of mission and strategic sight. It i s long run in the nature and provides the organization with a road mapConcept of strategic ManagementStrategic Management in the context of the construction pains comprises the following vii areasVision, mission and goals -The starting point for all organization endeavors establishing a vision provides each members with a direction to follow in all business practices members with a direction to follow in all business practices. affectionateness competencies -The Business boundaries for an organization does outstrip and where its aptitude resides organization do the best and where its strength resides.Knowledge Resources -The Combination of tender-hearted and engineering resources that provide the vertebral column for completing organization projects.3. What do I want to do after Graduation?With todays economy like it is, I have to find shipway to stick out from my competitors. Therefore, with a business management degree, also cognise as a general management degree, I have a lot of different areas I can go into after school. For example, finance, human resources, information applied science, marketing, operations management, and strategic management. With this degree I will be prepared to assume a wide range of managerial positions in the business field. solely the big question is do I want to start go outing for a channel, stay in school and transform my major or go on to graduate school? But first I have to ask myself what I want to do/ what of my life.The questions I have to ask myself are?Is at that place an diligence that interests you?For example Financial work, technology, real-estate, or health motorcare?What type of company would I like to work for? For example Public or private, small or large, domestic or internationalThen I need to develop a target hark of solids that interest me? For example Identify and inquiry the top 10 firms that interest me and also areas that they are located.What type of communication channel motivates me?For example Do I want to be an accountant, sales person, financial analyst or marketing research associate?What are curious strengths about me?For example I need to develop a list of the skills I bring to a potential employer such as time management, communication skills, ability to multi-task, listening skills, ability to get things done.Where do I want to live now an in the future?The actual job search can be time-consuming and frustrating. However, there are steps I can take to insure I spend my time wisely and efficiently.What do I need to know? What industry is the target company in?How large is the company?Who are their competitors?What type of products does the company produce/provide?Who are the companys customers / prospects?Is the company an employer of choice?What criteria does the company realise for when hiring?Are these companies located in your geographic preference?Where do they have offices? (International)What is their reputation in the market?A company has w arring advantage whenever it can attract customers and defend against competitive forces better than its rivals. Companies want to develop competitive advantages that have some sustainability (although the typical term sustainable competitive advantage is normally only true dynamically, as a firm works to continue it). Successful competitive strategies usually involve build uniquely strong or distinctive competencies in one or several areas crucial to success and using them to maintain a competitive edge over rivals. Some examples of distinctive competencies are superior technology and/or product features, better manu concomitanturing technology and skills, superior sales and scattering capabilities, and better customer service and convenience.5. A nook strategy can be competitively beautiful becauseThe focusers specialized competencies and capabilities in serving the target market niche give it strength in countering challenges from larger multi-segment competitors (who may n ot be considerably able to put the capabilities in place to meet the specialized needs of the target market niche and at the resembling time satisfy the expectations of their mainstream customers). Also targeting the market niche acts as an intro barrier and gives it some measure of protection from other firms abstracted to horn in on the niche. Rivalry in the niche may be weaker than in the broader market if there are comparatively few players competing in the niche. Difficulties in matching the focusers competitive capabilities in serving buyers in the target market niche present a hurdle that the sellers of transposition products must overcome in order to be a factor out in the niche.Examples of Focus StrategieseBay -Online auctionsJiffy Lube International -Maintenance for motor vehiclesBandag-Specialist in truck tire recappingPorsche -Sports carsWhat Makes a Niche Attractive for Focusing? life coat enough to be profitable and offers good growth potentialNot crucial to succe ss of industry leadersCostly or touchy for multi-segment competitors to meet specialized needs of niche membersFocuser has resources and capabilities to effectively serve an attractive nicheFew other rivals are specializing in same nicheFocuser can defend against challengers via superior ability to serve niche membersRisks of a Focus Strategy Competitors find effective ways to match a focusers capabilities in serving nicheNiche buyers preferences shift towards product attributes in demand(p) by majority of buyers niche reachs part of overall market instalment becomes so attractive it becomes crowded with rivals, causing segment profits to be splintered6. The car industry is an current growing market where the environmental retires become more and more crucial due to the apparition of new legislations to spare nature and avoid Global Warming. Therefore, in this case more incisively work with the niche market of electric vehicles. Actually, carmakers have to face the hassle of excess capacity. They are producing more than they are selling. One of the reasons can be the decreasing demand due to the economical regression and also to the fact that cars last longer. Another reason is that they want to produce in large volumes in order to make the production cost decreased. So, they can be competitive on the market. Now, scale economies are a critical issue for car manufacturers.The concerns for the economy and global warming have forced the gondola industry to start developing selections for fuel vehicles. At first, the automakers showed a small- reasoned interest into this concern and they did not want to look into the learning of alternative energy sources at all because of the high cost and the many risks involved. Nevertheless, due to new legislations, automakers do not have the choice anymore. They have to come up with new technologies to make fuel-efficient cars or find alternative to public fuel engines. At the end of the 20th century, car manu facturers came up with new technology to produce internal combustion engines with an electric motor and the development is ongoing.In todays society people are judged on the type of car they choose to drive. Of course, car manufacturers know about that fact and they target their potential customers to market their products. For example, anyone who drives a nice car is comprehend by others as being wealthy and no one wants to be seen driving an uninviting car. Consumers also tend to feel better when they are driving a nice or a new car. Another feature of the socio cultural aspect for car is that auto makers have to keep in mind the growing environmental concerns and the need of fuel efficient vehicles. Many environmentalists are worried about the impact that the gasoline cars have on the environment and therefore search for alternatives.The automotive market is characterized by a genuinely low number of entrants. In order to compete in this market the newcomers must be able to a chieve economies of scale by bearing a cost saving strategy. Therefore, the car manufacturers must mass-produce to be able to offer cars to the customer at a reasonable price. At the same time, it requires an extreme amount of capital not only to be able to manufacturer the product, but also to keep up with the research and development of new products.8. There is a HUGE market for tablets. Many have said this is like a living room computer, as well, as an e-book reader. It would also be a great entertainment device, on airplanes (if were allowed to use them), on the bus, and around town. Also the iPad will be ideal for speech to meetings without the intrusion, distraction, boot up or designer cables of a laptop. In the future the laptop will be staying in the office. The people that will expediency from this product a lot are doctors and also nurses. I prize when the iPad launches it will be a big competitive advantage to the company because of what they have done in the past. H onestly, the iPad, will give orchard apple tree more power in the companys product line and also move the company forward toward being the spoke in the wheel that is the world of media and technology. devising something that fits between a smartphone and a laptop has been a goal for the consumer technology industry for more than a decade. The most recent attempt has been the Netbook. The iPad easily makes Netbooks seem boring and staid, and too close to the same old form factor, the computer. My prediction is that the iPad will really shake up the competitors and really ail their netbook business in the long run. And, the competitors will really struggle this time to find a way to create tablets that are equally as unique and competitive with Apple. Sure, they will create similar designs, but Apples ability to deliver a complete eco system of hardware, software, apps and services tied to the iPad is their real advantage. And with iPads starting at $499, it will make it much easier for Apple to further a new mobile computing agenda that goes well beyond the interest of techies and will tap into the mobile computing interest of a large market of consumers.The iPad is pickings a different tack victorious tasks that were too big for an iPhone and puts them on a device that isnt pocket-sized, but is more convenient to carry around than a 13- or 15-inch laptop.The iPad poses a real problem to competitors on a couple of fronts. The big one is the fact that Apple uses their own processor to power the iPad. No Intel tax in the bill of materials. I suspect that even with bill of material cost for screen and memory being an issue, Apple is still able to get margins of over 20% for the entry version at $499 because of this vertical desegregation of Apple internet protocol. On the other hand, any competitor doing a tablet will have the screen and memory component be as well as the processor costs and at a competitive price of $499, they would have much smaller margin s to work with.Also, Apple is able to tap into its rich eco system of easy to use multi-touch port and 140,000 apps that give it additional functionality from the start. At the rattling least, it puts them two years beforehand of competitors who will try and create competitive products in this same home with similar app ecosystems.The economy -rich peo young classApple has created a new market, everyone will soon try to follow.2. A business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace. The forces that drive tilt, is contending that the competitive environment is created by the interaction of five different forces acting on a business. In addition to rivalry among existing firms and the panic of new entrants into the market, there are also the forces of supplier power, the power of the buyers, and the threat of switch products or services. The intensity of rivalry, which is the most obvious of the five forces i n an industry, helps determine the conclusion to which the value created by an industry will be prodigal through head-to-head argument.Another point is both potential and existing competitors shape average industry advantageousness. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents position. The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as followsEconomies of scale for example, benefits associated with bulk purchasing.Cost of entry for example, investment into technology.Distribution impart for example, ease of access for competitors.Cost advantages not related to the size of the company for example, contacts and expertise.Gov ernment legislations for example, introduction of new laws might weaken companys competitive position. specialism for example, certain brand that cannot be copied.The threat that substitute products pose to an industrys profitability depends on the relative price-to- capital punishment ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of substitution is also touch on by switching costs that is, the costs in areas such as retraining, retooling and redesigning that are incurred when a customer switches to a different type of product or service.Buyer power is one of the two horizontal forces that influence the appropriation of the value created by an industry (refer to the diagram). The most important determinants of buyer power are the size and the concentration of customers. Other factors are the extent to which the buyers are informed and the concentration or differentiation of the competitors.This force is relatively high where there a few, large players in the market, as it is the case with retailers and food market storesPresent where there is a large number of undifferentiated, small suppliers, such as small farming businesses supplying large grocery companiesLow cost of switching between suppliers, such as from one fleet supplier of trucks to another.Supplier power is a mirror image of the buyer power. As a result, the analysis of supplier power typically focuses first on the relative size and concentration of suppliers relative to industry participants and second on the degree of differentiation in the inputs supplied. The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power. Bargaining power of suppliers exists in the following stakesWhere the switching costs are high (switching from one cyberspace pr ovider to another)High power of brands (McDonalds, Coca Cola)Possibility of forward integrating of suppliers (Brewers buying bars)The nature of competition in an industry is strongly stirred by suggested five forces. The stronger the power of buyers and suppliers, and the stronger the threats of entry and substitution, the more intense competition is likely to be within the industry. However, these five factors are not the only ones that determine how firms in an industry will compete the structure of the industry itself may play an important role.5 Forces analysisThe Porters Five Forces representative is a simple tool that supports strategic understanding where power lies in a business situation. It also helps to understand both the strength of a firms current competitive position, and the strength of a position a company is looking to move into. Despite the fact that the Five Force shapeing focuses on business concerns rather than public policy, it also emphasizes extended c ompetition for value rather than just competition among existing rivals, and the simpleness of its performance inspired numerous companies as well as business schools to adopt its use.With a clear understanding of where power lies, it will enable a company to take fair advantage of its strengths, improve weaknesses, and avoid taking wrong steps. Therefore, to apply this planning tool effectively, it is important to understand the situation and to look at each of the forces individually.After identifying favourable and unfavourable forces for the companys performance and industrys attractiveness, it is important to analyse the situation and examine the impacts of the forces. One of the critical comments make of the Five Forces framework is its static nature, whereas the competitive environment is changing turbulently. By thinking through how each force affects a company, and by identifying the strength and direction of each force, it provides with an opportunity to identify the stre ngth of the position and the ability to make a sustained profit in the industry. It is important for a corporation strategists goal to find a position in the industry where his or her company can best defend itself against these forces or can influence them in its favour, or is the goal to become part of the ongoing commerce with the intention to produce innovative ideas that will expand the size of the industry? Is it true that the environment poses a threat to the organisation, leading to the friendliness of suppliers and buyers as threats that need to be tackled, or does it offer the ground for a constitutive industry player co-operation?Limitations of Porters Five Force ModelPorters model is a strategic tool used to identify whether new products, services or businesses have the potential to be profitable. However it can also be very illuminating when used to understand the balance of power in other situations.At the heart of industry are rivals and their competitive strategies linked to, for example, pricing or advertising but, he contends, it is important to look beyond ones immediate competitors as there are other determines of profitability. Specifically, there might be competition from substitutes products or services. These alternatives may be perceived as substitutes by buyers even though they are part of a different industry. An example would be plastic bottles, cans and glass bottle for publicity soft drinks. There may also be potential threat of new entrants, although some competitors will see this as an opportunity to lace their position in the market by ensuring, as far as they can, customer loyalty. Finally, it is important to appreciate that companies purchase from suppliers and sell to buyers. If they are properly they are in a position to bargain profits away through reduced margins, by forcing either cost increases or price decreases. This relates to the strategic option of vertical integration, when the company acquires, or mergers with , a supplier or customer and thereby gains greater control over the kitchen range of activities which leads from basic materials through to final consumption.Examples of Golf Equipment1. The threat of new entrants into the market is moderate, indicators point in mixed directions. Companies within the industry can be separated into two parts play and sporting goods. To take the largest golf company, for example, Callaway. For a company like Callaway to enter into this market would require significant amounts of investment. One could assume that other sporting goods companies could diversify into golf similar to Adidas and Nike, but there are no large manufactures that are not in the market already. Brand preferences are very important to consumers. Callaway lists brand preferences as one of the top five reasons why consumers buy their hostelrys, is because of technology, quality, customer service and price. Capital requirements are low the production of clubs are very labor intens ive and very little animation is in the manufacturing process. vex to distribution channels are very important the quality of the club which is largely based on the material of the club are very expensive. To obtain carbon fiber and specific alloys that few manufactures make would be troubling for a small company to maintain and economies of scale in purchasing power would be most evident here.Essay