The Motorcycle Industry 's External Environment

990 Words Apr 8th, 2015 4 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 change. The sixth driving force is increased buyer’s preferences for change. This is mostly an influence of the movie stars or musicians. The seventh point is the government changes of policy. This automatically creates or influences change in the motor cycle industry. Lastly, it is change in lifestyles, social concerns and attitudes (Hill, 2007).
Analyze the dynamics of competition using Porter 's Five Forces Model of Competition. Correctly assess the dynamics of competition
Entry Barrier: It is a fact that an ordinary individual cannot come up and begin to manufacture motorcycles. Most of the motorcycle industries have been undermined by foreign competitors that have the necessary technology, enough capital and good skills of management.…
Open Document