The Motorcycle Industry 's External Environment

990 Words4 Pages
The major driving forces in the motorcycle industry‘s external environment includes; growth rate changes in the industry. Two, there is change in the buyers of motor cycles and how they use it. In the recent years motor cycles have been associated with robbery and drug trafficking. Three is the marketing innovation. The motor cycle industry is yet to fully embrace the new internet technology. Four, there has been numerous entry of major firms that have brought imbalanced competition in the industry (Raman, 2004). Five, lack of enough technical knowhow has made many people to either fear the motor cycle or to have wrong information about them. Globalization and increased efficiency and cost change is another reason for driving forces for…show more content…
This means if one of them drops the price, it affects all the other competitors. Due to this high competition, this industry may suffer low returns. Competitive rivalry also leads to slowly growing revenue and increased production costs. Supplier’s bargaining power: Most of the motorcycle suppliers depend on a single or two makers to purchase most of their products. This can cause great loss to a supplier if a buyer decides to switch to another supplier. This leads o the suppliers being too susceptible to demands hence they hold little authority. Buyer’s bargaining power: Consumers don’t posses much bargaining power. This is because they only to buy in many case a single motor cycle at a time. They have also opted to buy their motor cycles from foreign countries, because they are not satisfied with the local products. Three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, The recent global motor cycle industry statistics indicates that the industry was worth 84.5 billion dollars in the year 2014. According to market line, since 2010 the industry has not recorded any increased growth. Nevertheless, there is expectation that this growth will increase by 6 % in the next five years hence reaching a worth of
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