Motorcycle Market
Motorcycle Industry Environmental Analysis
One of the primary determinants of success or failure in most industries is the level of competition and response to that competition by individual firms. In many industries this is entirely straightforward, as competition is direct in terms of product offering and pricing scale: McDonald's and Burger King are clearly in direct competition with each other, for example. Things are not quite so clear-cut in the motorcycle industry, as the product lines of many of the key players in this industry differ dramatically and cannot all be said to be in direct competition with each other, the competitive forces and macroenvironmental influences that exist in the industry can affect different companies in very different ways.
Numerous Competitors: In some regards, the motorcycle industry is very well populated and well balanced, and there is not a clear industry leader. While Harley Davidson has the largest market share at 28%, Honda's 25% share is quite close. Yamaha, Suzuki, and Kawasaki all have greater than a ten percent share (17%, 13%, and 11%, respectively), and there are several smaller companies that specialize primarily in higher-end motorcycles. Factoring in the diversity of Honda's other industries of operations -- as well as Yamaha's and Suzuki's -- makes it clear that in terms of clout and purchasing power Harley Davidson doesn't stand a chance. This differentiation as well as the strong market shares of the top five competitors undercut Harley Davidson's seemingly-obvious position as the market leader, increasing competition.
Industry Growth: Motorcycle sales in the United States have been steadily dropping over the past several years, while sales of scooters and other similar products have been increasing. This has...
External Analysis Motorcycle Industry External Analysis of the Motorcycle Industry Harley Davidson Harley Davidson, the heavy-bike manufacturer holds the purpose of fulfilling dreams of personal freedom (Purpose: Harley Davidson, 2013). The company functions in segments of Motorcycles & Related Products and the Financial Services. It is however globally known for heavy bikes that have engine displacement of 651+cc (Harley-Davidson Inc. 2013). The company enjoys a unique position in the market yet it is
Industry Analysis Automobile and Motorcycle Manufacturers A select few companies throughout the history of American capitalism have become iconic figures that are synonymous with the products they sell, and the Harley-Davidson Motor Company has successfully accomplished this rare feat, engraining the moniker "Harley" in the global lexicon as the emblem of premium motorcycles. While today's generation may consider Harley-Davidson to be a monolith without legitimate competition from domestic motorcycle manufacturers, a
British Motoring When one thinks about the UK motoring sector (or the same sector in any other national context, for that matter), one is inclined to think of the manufacture of cars. In other words, the UK motoring sector comprises the traditional industrial and skilled labor requirements to build a car that will last a reasonable period of time and provide a reasonable safety record in a reasonably fashionable chassis to
Harley-Davidson Retail Sales and Deliveries Source: Seeking Alpha (2007) Over the past four years, account receivable growth has outpaced sales and the result is there is more inventory on dealer's lot than at any time in the history of HOG. The analysis states: "If the additional dealer inventory build was taken out of Harley's EPS from the previous two years and shipments evenly distributed throughout the quarters then Harley would have reported
In this sense, the company should be attempting a strategy of aggressive growth, but not the kind of growth it has traditionally sought. In the past, Harley-Davidson has sought to maintain a kind of brand purity that has managed to develop a loyal and committed fan-base while reducing the company's market share over all. Put simply, it does not matter how loyal these fans are if they cannot afford the
This is recognized by the stock market and J.P. Morgan has upgraded express mail services provider United Parcel Service, Inc. In order to overweight from the neutral level, with the statement that it believes the company is being positioned for new momentum. (Market Pulse: UPS upped at J.P. Morgan, renewed momentum seen) Thus the faith in the organization exists even among experts. Conclusion: The management of the company is aware of
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