Hog Case Study Essay

5383 WordsMay 6, 200822 Pages
Industry and Competitive Frame Industry Structure: Fragmented Product Differentiation: Differentiated Technological Change: Slow Product/Service Technology: High Location: Global Model of Transition: Industry Life Cycle Phases of Transition: Late Growth / Early Maturity Product Life Cycle: Late Growth / Early Maturity I. Uncertainties that may affect industry structure & II. The plausible assumptions about each important causal factor The uncertainties that exist for the Motorcycle Industry are fluctuations in the following categories: government regulations, price of supplies, Fuel Cost, Global Demand for motorcycles, Product innovation, customer loyalty value (CLV), target market, and market share.…show more content…
The industry will continue to compete on all aspects such as price, quality, and functionality. This intense competition will lead to a Red Ocean until a new innovator can emerge. The industry will most likely continue to invest in Research & Development to improve the quality of their products, to try to innovate, to get a better product out to the market and even innovate the way they assemble and market their product to the consumer. Also, personalization and customization of motorcycles will increase as television programs such as American Choppers, and West Coast Choppers are glorifying them. All these factors will lead to an expansion of the Target market and more intense competition. Customer Loyalty Value will most likely rise for the industry because many of the individual producers have a wide variety of products that they can offer to their customers. The industry will most likely target previous customers more to get them to purchase a secondary bike. This trend will continue since the largest buyer group numbers are steady for the next several years, currently there are 41 million US men in the age group of 35 to 54 and that number increases to a little over 41 million in 2020. Also currently there are 80 million baby boomers of those the oldest ones are entering their late 50’s and the youngest boomers are just entering earlier part of their

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