Harley Davidson (Term Paper Sample)

Walker Prince Professor:  Barbara Duncan BUS499 R02 6/22/2016 Help The Analysis of H-D's External Environment. The external environment is the factors outside a business that affect the rate flow of the market of product in case they occur. In a motorbike like any other industry the major driving forces for the industry are; Sociocultural factors. These are factors that are related to the culture of particular places and regions at large. They are the factors that are different from one place to another and are led by the dominant beliefs of certain regions. Like in a motorbike industry, some cultures like the African culture don't agree on the riding for the women, and there only a few women in Africa ride and the, therefore, the only gender that is targeted in the continent for the motorbikes is the male gender (Chartwell, 1994). Legal, political and regulations. Some country has high taxes that lower the rate at which the marketing of the motorbikes is done. The rate of tax and the import duties determines the prices at which a product is going to be sold to several regions and country. A state that has high import duties for the motorbikes leads to low or no export to the countries at all. Some states also limit the types and the brands of motorcycles that are imported in their countries, therefore, lowering the rate of export for the motorcycles. Bargaining power of the suppliers The supplier is capable of making some changes in the prices of the products depending on the prices they offer their products. The number of providers holding a particular input may determine the prices of the products by their number. The uniqueness of their products from any other or limited availability of the products in a region. Buyer power The ability and the will of a purchaser to acquire goods and services from a certain market drives the prices of the market and therefore brings change to the demand. Buyers are the primary determinants of the demand for the products. A buyer who has a good income is believed to have a good ability, and if willing to acquire a product, then he has the capacity. Rivalry among competitors. The capability of the competitors and the number is the main determinant of the rivalry among the competitors. Many competitors in the market who offers products that are bot differentiated reduces the attractiveness of the products. Threat of substitution The existence of various substitutes among the market players is a major driving force of the prices and the sale of some products in the market. Substitutes are the other products that can be used in the same way as the original product and therefore can solve the same problems with the original product. The substitutes being offered at lower prices forces the prices of the company market share to go down and the buyers' starts to move to the next product making the original producers reduce their prices. The threat of new entry. New entrants into a market are new providers of the services and the producers of the same products. The prices of products are distorted when the initial products are overtaken by other new products in the market. The introduction of the new form of motorcycles will outdo the old models and therefore the original producers will be forced to come up with new models too to adapt to the market or differentiate their original products. The statistics The Harley Davidson plan for the year 2003 was to produce a total of 300000 units by the time which they targeted to coincide with their 100 years anniversary. In 1999 they produced 177,187, in2000 they produced 204,592, in 2001 they produced 234,500, 2002 they produced 263,700. The growth rate for the company was 12.45%. The threat of rising terrorism Terrorism has risen at the highest rate in the world, and it is affecting almost each business in the world. The world is at an alarming rate for the rising cases of terrorism. Terrorists are attacking the sellers the buyers in their markets and their transport systems. The systems are seen to be affected too much such that many insurance companies are forced to offer in the market the terrorism cover for those in the marketing transportation and manufacturing. The motorbike industry is not left behind I is also affected by the rising terrorism. The transportation of the motor bikes from one country to another is affected by the terrorism, and therefore strategic measures are taken I sale and transportation. A drop-off in business travel. The rate at which a business is a dropping or rising in the market. The business travels have been reported be dropping time by time due to cases like insecurity, change in economic status, and the buying power issues among others. Serious prices competition since deregulation The price at which the other products are offered affect the prices of the other commodities. The rise in the number of competitors in the market leads to some changes in the offer prices of the competitors. The contestants are seen to be affecting the market share of any market whenever the enter the market and therefore the distorting of the previous prices. The rising number of companies that are producing motorbikes brings about change in the prices at which the motorcycles are sold. The prices of the motor bikes go down at the same rate as the manufacturers number goes high. Rising fuel costs The rate at which the fuels rises affects the motor bike industry among other industries in the same market. The vehicles depend on the fuel as well as the motor bikes and therefore any trial to change the rate at which the motor bikes are sold in the market is affected. ...