Question

Polaris industries inc.

1. What is their competitive advantage?

Detailed answer + examples please

Answer 1

Polaris industries Inc is manufacturer of ATVs, snowmobiles, motorcycles, and electric powered vehicles. The company is witnessing higher sales due to improved productivity and better cost control. Often company has committed that it's operation is it's competitive advantage. It build a plant in Mexico in 2010, to employ lower wage costs. Company expected to save $12million to $15 million in 2012 and annual savings of $30million. In it's first year of operation s, plant produced 22,000 vehicles and it had continuously increased the production.This decision to chose Mexico as a plant location provided lower costs vehicles.Company has efficient distribution channels for the markets like Latin and South American markets.

It had also looked the internal improvements of the company that made benefits to reap profit margin. Now the savings that company expected can be utilised further to expand new projects. In 2012, the gross profit margin increased to 28.9% from 28.3% due to manufacturing realignment. Also, company could achieve it's economies of scale.

There are various other factors that lead to the growth of the company. It had effectively managed it's employees and labour force. And it's the happy employees of the company to accelerate the growth of a company. While shipments were low 29% in 2008 but volume increased to 59% . The continous innovation has also lead to development of the company. There had been continuous research and development in the firm.

Company also acquired a firm from France Goupil industries,a manufacturer of commercial electric vehicle. Prior to this it acquired Global Electric Motorcars, US based manufacturer of electric vehicles. So, acquisition s also is a factor of growth of the company.