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
…show more content…
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
…show more content…
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...
Harley Davidson has built a brand that is more than just the spread eagle on a load rumbling motorcycle, but for those who purchase a Harley they are purchasing a lifestyle, an experience, or piece of American culture if you will. Due to this differentiating factor Harley has been able to charge a premium for its products and still be successful against its lower priced competition. Harley built upon this lifestyle when it created the Harley Owners’ Group (HOG). Harley would promote shows, rallies and rides through HOG in the US and even in other countries. This helped to build its coveted image into more of an exclusive club.
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.”
Having both marketing strategies and both products analyzed and the history of the important marketing decisions made and techniques used by the company written down, it will be interesting to perform a critical analysis of how the market and business realities made an impact on the marketing of Tesla Motors, why it happened and what was the effect. The presence of the CEO and the impact he makes on the public and investor confidence will also be critically reviewed. Based on the results, a list of recommendations will be composed for both representatives and marketing specialists who work in the same or similar
Italian manufacturer Piaggio ranks as one of the world’s top four players in its core business. It has consolidated leadership in the European 2-wheeler market. Piaggio should not miscalculate its competitors. Competition in the industry is very powerful, not only nationally but internationally as well. This is due to two well-established companies in this sector which are the Japanese Yamaha and Honda. Yamaha and Honda strengths are their long-run experience in the sector and the high quality image of products. Due to participations to the motorcycle championships, these two companies constantly receive positive feedbacks to their efforts in researching for first class products. In the future, other kinds of competitors are expected to arise: Chinese companies whose ability to imitate and create similar products at highly competitive prices is getting more and more dangerous (Piaggio, 2008)
Honda- focused differentiation, medium pricing, breadth of product line is high. Strengths are quality, reliability, overall value, and styling.
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
Harley Davidson is a company that’s been around for over a hundred years. It continues to have success today and is becoming one of the most established motorcycle brands in the world. The company was founded in Milwaukee, Wisconsin in 1903. Harley was one of the American motorcycle manufacturers to survive numerous ownership changes, constant economic hardships, and global competition. Through part of its history, the Harley brand has been a representation of what America is today. Their bikes were used during both World War I and II. The Harley Davidson brand was discovered by the Davidson family, and a childhood friend named William S. Harley. Together they worked on creating new prototypes that would help them and soon after present it
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.
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.
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.
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”.