Question

A. What are key success factors in this industry of motorcycles?

B. What are the key risk patterns in the industry of motorcycles?

C. What are the key value chain elements in the industry of motorcycles?

D.What is life cycle of the industry of motorcycles?

Answer 1

Answer a= The key success factor of the industry of motorcycles is to have a strong focus on the corporate strategy. The company needs to determine its long term and short term objectives so that it can allocate the different resources to the various heads. The productivity and efficiency have to be improved so that the overall cost of production can be reduced and this reduction can be passed to the customers in the form of price reduction. New technology and investment in R&D will help the company to develop a unique position in the industry.

Answer b= The risks in the motorcycle industries can be seen as the greater awareness of the customers towards more environmental-friendly vehicles and it has been seen that the motorcycles are also feeling this heat. The emerging economies still have a lot of regulations when it comes to foreign investment. The customers in India and China which are coming up as the leading economies have some specific requirements that are needed to be addressed.

Answer c= The value chain elements will include the latest technology that will attract the customers, the innovative features, fuel efficiency. The motorcycle industry also has to create value for its brand as in the case of Harley Davidson. The company has been quite successful in developing prestige and different positioning in the mind of the customers. This can be obtained by having the improved brand awareness, brand loyalty, and brand cautiousness. In order to create additional values for the customers, the companies need to provide them with additional impetus such as free services, and maintenance, membership of any fan club and so on. Some companies are also coming up with the concept of bike financing in which they help the customers to buy the products in instalments..  

Answer d= The motorcycle industry can be seen to have entered in the growth phase as the industry is still having a healthy 12-15% per annum growth in the demand