Running Head FIVE PORTER FORCES IN MOTORCYCLE INDUSTRY1FIVE .docx

Running Head: FIVE PORTER FORCES IN MOTORCYCLE
INDUSTRY 1
FIVE PORTER FORCES IN MOTORCYCLE INDUSTRY
6
Five Porter Forces in Motorcycle Industry
Student Name
Institution
Five Porter Forces in Motorcycle industry
The porter’s five forces analysis represents the competitive
environment of the motorcycle industry. The five forces provide
strategic foresight plan of a motorcycle firm to avoid putting
the competitive edge at risk and ensure a long-term profitability
of the firm’s product(Kung-Sung, 2005). This vision is very
important for the motorcycle production companies as they are
able to direct there innovations in terms of choice of
investments and strategies. The five forces provides a
perspective for analyzing and assessing the competitive strength
and position of a business organization or corporation. The

Porter’s five forces shape the competition of various products
from different companies in the motorcycle market. The
following five processes therefore will shape the competition of
the available products and goods in the motorcycle market:
Competitive rivalry within the industry, the threat of now
entrants in the economy, the threat of substitutes, the bargaining
power of suppliers, and the bargaining power of the customers
(Porter, 2008).
Competitive rivalry within the industry
The competition between different firms producing same kind of
product will determine the attractiveness of the industry sector.
There are many motorcycle-manufacturing companies today.
These companies are fighting to maintain relevance and power
in the market. The competition will change based on the sector
development, diversity and the existence of barriers to firms to
enter. It also provides an analysis of the number of products,
competitors, brands, strategies, strengths and weaknesses, and
market shares. The factors that will determine how well a firm
competes with other firms include the number of competitors in
the market, the quality differences of the products and other
differences, the switching costs, customer loyalty to a particular
firm and the cost of leaving the market(Kung-Sung, 2005).
The Threat of new entrants
The new era of technological advancement has seen many new
motorcycle firms entering the motorcycle industry. New firms
have begun manufacturing motorcycles of various types, which
brings a great threat to the existing companies. The need for
more vehicles due to the increasing population has been the
motivation behind the increase of new entrants in the market.
New entrants will result to competition for the market of their
products, which may result to lower profits if the company is
beaten in the competition. Therefore, it is the interest of every
company to create barriers to prevent its competitors from
entering the market. New entrants may be new companies or
companies that intent to diversify. The barriers may be
industrial (products or single brands) or legal (patent

regulations). The arrival of new entrants will depend on the size
of the market (economy of scale), the cost of entry, the
reputation of the company, technical standards, access of raw
materials, cultural barriers among many others (Porter, 2008).
Threat of Substitute products
China has been blamed for producing substitute products,
especially in the telecommunication industry. The motorcycle
industry has not been left behind, with numerous motorcycle
brands entering the market. New substitute cars and other motor
vehicles have entered the market, increasing competition for
market with the existing brands. Entry of substitutes
complicates the sale of the products in the market. This is
because they can be considered as alternative compared to the
supply in the market. The substitute products are due to
innovation or the changes in the state of technology. New
products, which may be better in their performance, or cost
lower replace the products of the established companies.
Research shows that the products normally have better quality
/price report and come from sectors with high profits. The
substitute products are very dangerous and the companies
should anticipate coping with this threat (Kung-Sung, 2005).
Porter Five Forces Model
(
Threat of New Entrants
1. Time and cost of entry
2. Specialist Knowledge
3. Economies of scale
4. Technology protection
5. Barriers
to entry
)
(
Buyer Power

1. Number of Customers
2. Size of each order
3. Differences between competitors
4. Price sensitivity
5. Ability to Substitute
6. Cost of Changing
)
(
Supplier Power
1. Number of suppliers
2. Size of suppliers
3. Uniqueness of service
4. Your ability to substitute
5. Cost of changing
) (
Competitive Rivalry
1. Number of competitors
2. Quality Differences
3. Other differences
4. Switching costs
5. Customer Loyalty
6. Costs of leaving market
)
(
Threat of Substi
tutes
1. Substitute performance
2. Cost of Change
3. Cost of substitute
)

The Bargaining power of suppliers
The bargaining power of suppliers is very crucial in a market.
The motorcycle industry is highly reputed for its large number
of dealers and suppliers. The motorcycle suppliers have a great
impact in the performance and production of a company.
Powerful suppliers will impose their terms and conditions in
terms of quality, price, and quality. However, if the number of
suppliers increases, there influence would be weaker. One
should analyze the number of realized orders, the presence of
raw materials, and the cost of changing the supplier, size of
suppliers, Uniqueness of service, and the ability to substitute.
If there are few substitutes, the suppliers of raw materials,
labor, components and services to a company may be a source
of power over the firm (Kung-Sung, 2005).
The Bargaining Power of Customers
Customers have a big say on the production and profitability of
motorcycle industry. The customers’ needs and preferences need
to be checked to ensure that the companies keep the clients from
the jaws of their competitors. If the bargaining power of
customers is high, they influence the profitability of the market
by imposing their requirements in terms of service, price,
quality, size and the cost of changing customers. Choosing
clients remains crucial because a firm should avoid the situation
of dependence at all cost. The level of concentration of
customers gives them more or less power. The bargaining
power of customers is inversely proportional to that of the
suppliers (Porter, 2008).
Reference
Porter, M. E. (2008). The five competitive forces that shape
strategy.Harvard business review, 86(1), 25-40.
Kung-Sung, T. (2005).Using Porter’s Diamond Theory and Five
Force Factors to Explore the Global Competitiveness of
Motorcycle Industry in Taiwan.

Running head: EXTERNAL ANALYSIS 1
EXTERNAL ANALYSIS
Topic: External Analysis
Student Name
Institution
Organizations do not operate in isolation and as such, they
are subject to both internal forces and external factors, which
influence the decisions made regarding the organizational
operations. There is need for the organizations therefore to find
a suitable fit between the external and internal forces if they
have to realize the progress in their strategic management. In
the previous paper, I did an internal analysis of HD motorcycle
and presented a report to the managing executives. In this
paper, I am analyzing the external forces (PEST) and five
porter’s forces and present to the management showing how
these forces can be very crucial in decision-making for the
company as it faces the emerging competition from other
emerging operators such as “victory” and “Indian” (Campbell &
Craig, 2005).

PEST is an acronym for political, economic, social and
technological analysis, which I believe they are important
aspects in the HD motorcycle strategic decision- making
because they have huge impact on their operations especially
considering that the company is expanding to foreign markets.
For instance, political forces are very important for the
company in its strategic decision- making in the United States
and abroad wherever it would be setting up shop. Political
forces influence tax regimes in a given country and as you
know, taxes are very important in business operations. Higher
taxes will translate into higher prices for customers; a very
dangerous trend especially in emerging competition. Therefore,
political analysis is important to determine the market, which
has better taxes for the organization. Such other political forces
are stability, a very important ingredient of business. It would
be very hard for a company to operate successfully in a country
with political unrests due to the vandalism, which comes with
political unrest (Bensoussan & Fleisher, 2008).
Economic forces will be a very important tool in strategic
positioning of the company. Currently as I write this analysis
report, there are concerns of high prices associated with the HD
motorcycle in the market. Economic analysis in this case will be
very important for the company because it will help the
company to determine the best markets in which to set up shop.
In the worsening world economic times, analysis of economic
forces, such as taxes, economic growth and exchange rates and
interests rates of a given country. This will help the
organization to determine the best markets it can set up
operations so that it can help the organizations reduce the
increasing prices so that they can influence the customer
towards the company products (Campbell & Craig, 2005).
Social forces analysis will be very important for the
company because again it uses the social based mystique to
push their product into the market. Such social forces like
purchasing power, cultural aspects and the product safety is
very important in ensuring that the company designs the best

products for the right market segment. Other issues like product
safety of the product to the customer are very important to
assure the customer of good quality and safety to their life. A
customer needs to know whether when they ride a motorcycle
will have their luxury as they wish without worries of
breakdowns of even having to hurt themselves (Bensoussan &
Fleisher, 2008).
Businesses are now running on technological platforms and
this underscores the importance of technology in the operations
of HD motorcycle. The company has already invested a lot in
technological concerning its logistics and production
management. The company therefore needs to do regular
technological analysis to determine the emerging technological
trends to determine the ones, which can help the company go
forward and which are posing threat to HD motorcycle. The
obsolete technologies need to be phased out while the emerging
ones need to be incorporated in the company production
processes to push the company efficiency forward (Campbell &
Craig, 2005).
Just as PEST is important to organization regarding
analysis of the external forces affecting the organization, the
five porter’s forces are very important to HD motorcycle in
determining the strategic position of the company. For instance,
given that the motorcycle company focuses on offering luxury
riding, there is a threat of substitute because customers can still
find luxury in other ways such as sunbathing and walking in the
park. The organization need to analyze this substitute so that
they can understand how to model their products so that they
provide the best luxury so that they do not find the need opt for
the substitutes (Campbell & Craig, 2005).
There is also the threat of entrance of new players in the
market such as “victory” and “Indian, which is threatening to
eat into the Company’s market share. Analysis of this five
porter’s force will be very crucial for the company to determine
the best strategies the Company to adopt so that it can adapt to
minimize the impact of the new entrants on their market.

Suppliers are also a very important people part of five porter
forces because they can influence the quality of the materials
supplied to the company. The materials and their prices will in a
very great deal determine the kind of products they are going to
supply in the market as well as their prices. It is therefore
prudent for them to scrutinize their suppliers very well to
ensure that they get the best prices as well as the quality
(McBee, 2011).
Customers are as well very important force in HD
motorcycle because they are the bosses of the business since
they can drive the business away from the market by spending
their money on competitor products. For the company to make a
strategic management decision, it is important therefore they
look at such things as the customer tests and preferences to
ensure that the company changes with their changing tests. This
will help it to ensure it keeps up the customer satisfaction by
responding to their needs (McBee, 2011).
External environment analysis and five porter’s forces
analysis are very important tools in helping the organizations
make a strategic decision about their organizational direction.
Such factors like political forces are important considerations
because the organization is able to know the market, which is
favorable for their operations. An organization also needs to
know the best market, which offers it with the right interest
rates and exchange rate for the company to compete favorably.
The Company for instance, is currently having issues of high
prices being attached to their price tag. It also has to fight the
threat of entrance of new player in the industry both at home
and in the international market. This explains why the company
needs both PEST and five porter’s forces analysis to enable it
make good strategic management decisions, which will help
them keep the competitive edge in the market (McBee, 2011).

References
McBee, R. D. (2011). Harley-Davidson's Future (Abroad).
International Journal Of Motorcycle Studies, 7(2), 1-8
Campbell, D. J., & Craig, T. (2005). Organisations and the
business environment, Amsterdam: Elsevier Butterworth-
Heinemann.
Bensoussan, B. E., & Fleisher, C. S. (2008). Analysis without
paralysis: 10 tools to make better strategic decisions, Upper
Saddle River, N.J: FT Press
Running head: REPORT ON TOYOTA STRATEGIC
POSITIONING
REPORT ON TOYOTA STRATEGIC POSITIONING
Topic: Report on Toyota Strategic Positioning
Student Name
Institution

Introduction
Toyota is a multinational automobile company, which is based
in Japan. The company was started by an individual called
Toyoda after whose the company was named. Since its
formation, Toyota has moved from strength to strength and
overtime it has managed to beat automobile giants such as
General Motors and Ford. Just what is the trick behind Toyota
phenomenal growth? This paper presents a report on Toyota
strategic positioning and the influence it has on its success. I
chose Toyota because it is a good example of how organizations
can benefit from strategic planning. Much of the information for
this company I got from internet, business journals, books and
the Company website (‘Toyota’, 2013).
Mission statement
To move people in a better way
Vision statement
To lead the way to future mobility, enrich lives around the
world with safest and most responsible ways of moving people
Goals
To achieve zero casualties from traffic accidents
Objectives
The company objectives are to be the leading automobile and
machinery manufacturer around the globe.
To offer quality products
To achieve reduced business cost through application of
efficient strategies such as kaizen and lean manufacturing.
The major stakeholders in the Toyota Company are the
employees, customers and investors. These groups of people
have varying needs which they expect satisfaction from
company. For instance, customers expect quality goods, which
give them value of their money; employees need good working
conditions, job enrichment as well as good remunerations.
Investors need to maximize their wealth. The mission, vision,

goals and objective are in line with these needs since the
company endeavors to offer quality for the customers, realize
good working environment for employees as well as maximize
organizational wealth (Liker, 2004).
References
Liker, J. K. (2004). The Toyota way: 14 management principles
from the world's greatest manufacturer. New York: McGraw-
Hill.
Toyota:
http://www.toyota-
global.com/company/vision_philosophy/toyota_global_vision_2
020.html
Running head: HARLAEY DAVIDSON STRATEGIC
POSITION ANALYSIS
HARLAEY DAVIDSON STRATEGIC POSITION ANALYSIS

Topic: Harley Davidson Strategic Position Analysis
Student Name
Institution
The increasing competition in the business world has pushed
businesses to be creative and innovative if they are to remain
afloat in the dynamic business environment. One way of an
organization to be relevant with the environmental changes
include defining its strategic position and coming up with
appropriate plans to achieve that desired position. Designing a
good organization strategic position entails analysis of the
current business environment, external factors and internal
factors. This will give the organization a view on how well the
weaknesses and strengths can be interplayed to bring out the
best fit for the organization to optimize its processes and
resources for the best. Drawing a strategic position also
involves coming up with goals and some roadmap to reach the
goals. All stakeholders’ needs need to be identified as well as
the resources available. It is important that the resources and
the stakeholder needs be aligned to the organizational needs
(Haines, 1995).
This paper focuses on the analysis of how well the Harley
Davidson Company is aligning itself to its mission, vision and
values in regard to fulfilling stakeholder needs as well as
utilization of the organizational resources.
Mission: To fulfill dreams through the experience of
motorcycling, by providing to motorcyclists and to the public an
expanding line of motorcycles and branded products and

services in selected market segments (Collins, 2001).
Vision: We fulfill dreams inspired by the many roads of
the world by providing remarkable motorcycles and
extraordinary customer experiences. We fuel the passion for
freedom in our customers to express their own identity (Collins,
2001).
Organizational values: being truthful, keeping promises,
respecting the individual, being fair and cultivating intellectual
curiosity (Collins, 2001).
From the background information given about the company, is
living o its mission in a great way because it is providing its
customers with not only motorcycles but also a road worth
experience. It has variety of products not to mention that it has
expanded its operations to various parts of the world in a bid to
reach many customers and have them feel the experience. The
vision continues to guide the company as it seeks to offer
superior value to all its stakeholders. For instance, the
customers have a nice experience with Harley motorcycles
because they have freedom to drive a motorbike of their choice.
As for the values, the organization is adhering to its promises
because the customers are getting what they have been
programmed to expect. There is high degree of creativity and
innovation in the organization, which tallies with the cultivation
of intelligence curiosity organizational values (Collins, 2001).
Harley’s organization is very much concerned with its
shareholders because they believe they are the reason they are
in business. The shareholders’ interests guide their actions. The
organization has various stakeholders: customers, employees,
investors, government and the larger society.
Customers
This group of stakeholders for the core of the organizational
activities because they are the bosses of Harley Davidson. More
than anything else, customers want satisfaction from the
products and services they buy from an organization. The
current strategic position of Harleys is geared towards
satisfying customers by providing a variety of superior

products. It is therefore true that the organization strategic
direction is in line with customer needs; by the end of the day
they get the value of their money (Collins, 2001).
Employees
Employees are the prime movers of the organizational processes
geared towards realizing the organizational goals. This
component of the organization therefore cannot be overlooked.
Employees need career growth and expansion in their
experiences. The organization has sought to provide them with
extensive training so that they stand in a good position to add
value to the organizational processes. This is in line with the
organizational value of enhancing intelligence curiosity, which
in turn is expected to spur creativity and innovation (Haines,
1995).
Investors
In any business, an investor needs return on his or her
investment through wealth creation by whatever the
organization they have invested their money. The strategic
position for this organization is to expand to other markets and
claim a share of them. It is therefore in line with the investors
needs because this expansion will increase the organizational
wealth and hence that of the shareholders of maximizing their
wealth (Haines, 1995).
From the above analysis of the organizations strategic
positioning, I would recommend that the organization adopt
cost-cutting strategies such as lean manufacturing, six sigma
and just in time. It is also important that it progressively moves
from demand push to demand pull strategies and especially in
the countries, it is entering. I believe this will give it an edge in
the market by reducing its waste and therefore costs (Grünig,
Kühn & Kühn, 2005).
Strategic positioning is very important for an organization
because it enables identification of organizational
environmental factors and their influence on its operations.
Strategic positioning also allows identification of stakeholders

and how their needs and available resources can be aligned with
the organizational goals. Stakeholders need to feel that their
needs are being taken care of if they are to play their role in
ensuring that the organization achieves its goals (Grünig, Kühn
& Kühn, 2005).
References
Grünig, R., Kühn, R., & Kühn, R. (2005). Process-based
strategic planning, Berlin: Springer
Haines, S. G. (1995). Successful strategic planning, Menlo
Park, Calif: Crisp Publications
Collins, J. C. (2001). Good to great: Why some companies make
the leap--and others don't. New York, NY: HarperBusiness
Module 5 - SLP
The Marketing Mix: Price

HYPERLINK
"https://cdad.trident.edu/CourseHomeModule.aspx?course=26&t
erm=117&module=5&page=case"
HYPERLINK
erm=117&module=5&page=slp"
HYPERLINK
erm=117&module=5&page=objectives"
Introduction
The questions for the SLP 5 part of your marketing strategy
direct you to consider pricing activities.
Excluding your title page, and your revised SLP01, SLP02,
SLP03 and SLP04 sections, your analysis of the new sections of
the marketing strategy for Module 5 paper should be not more
than four pages long.
In other words, SLP 5 should begin with a revision of what you
prepared for SLP01, SLP02, SLP03, and SLP04 (sections 1-24)
with those revised pages placed before you address the
following issues.
The New Section of the marketing strategy for SLP05
25. COSTS
For your service, taking account of the marketing activities
previously described, investment requirements, and allowing for
your time to provide the service and any ancillary costs, assess

the OVERALL COSTS of operating your business which you
would take into account in setting prices.
26.PRICE SETTING
How will you set your price(s)? What are your pricing
objectives? What approach or strategy will you use? Do you
have some formula in mind such as a markup percentage or a
percentage return on your investment?
27. TEMPORARY PRICE PROMOTIONS
Will you use any price promotions to generate sales? When?
Why?
28.PRICE DISCRIMINATION
Will you vary your prices by segment? If so for whom and what
will they be?
29. PROFITABILITY
What will your expected profits be? Show calculations for your
expected profits over a reasonable time period. Refer to
previous sections where you have stated performance goals.
30. OVERALL SLP EXPERIENCE
Conclude this final submission with a personal evaluation of
this Session-Long Project. What did you find most helpful?
How could these assignments provide a better learning
experience? Any other comments?
Make sure you use section headings for each of the sections. In
addressing the sections the CAPITALIZEDBOLD words in the
sections as headings and the non-capitalized bold words as sub-
headings.
Write in a succinct, organized, and professional way. DO NOT
USE ESSAY FORMAT.

Please complete the sections above, and any modification to pr
ior sections (ensuring that the grader can easily recognize any
changes) and submit the completed strategy for your business
by the end of this module.
REMINDER
The MOD01 Background Info section contains "Notes for the
SLP " which gives guidance for ALL the sections of the entire
SLP.
SLP EXPECTATIONS
It is expected that you will explain the alternatives you
considered and why you decided to make the recommendations
you do. Also that you will use information from the background
readings as well as any good quality sources you can find to
deepen your understanding of the project and that you will cite
all sources and provide a reference list at the end of the paper.
The following will be assessed in particular:
· Your demonstrated understanding of the concepts and
frameworks used to conduct analysis for the project. Generally
formal definitions are not required as understanding can usually
b e demonstrated by the way you apply or interpret the
concepts.
· Your ability to conduct marketing analysis appropriate to the
project. The sections above require a combination of
description, (e.g. what will be done) and analysis (explaining
why it should be done that way). Graders will place more
weight on analysis than description alone.
The criteria used for assessment will be those explained on the
MOD01 Home page, namely:
· Focus.
· Breadth.

· Depth.
· Critical thinking, including selection and application of
relevant frameworks.
· Effective and appropriate communication skills.
Rev. May 31, 2013
Module 5 - Case
The Marketing Mix: Price
HYPERLINK
erm=117&module=5&page=case"
HYPERLINK
erm=117&module=5&page=slp"
HYPERLINK
erm=117&module=5&page=objectives"
INTRODUCTION
In this case we look at pricing methods, taking into account the
viewpoint of both the buyer and the marketer.
CASE ASSIGNMENT
Write a paper of no more than four pages in which you complete
the following assignment:

Using the teaching materials and any additional
research, explain what you think would be the most appropriate
pricing strategy - and why - for TWO branded products
selected from the following list. In doing so compare and
contrast the two pricing methods explaining why you think they
would be similar or different.:
· MEDIA DISTRIBUTOR (e.g. Netflix)
· FROZEN VEGETABLES
· ASPIRIN (or any over the counter painkiller)
ASSIGNMENT EXPECTATIONS
In answering this case question, aim to demonstrate your
learning not only of the materials from MOD05, but also those
from MOD01-04.
You may well wish to illustrate your arguments using estimates
of costs and other figures for the products you have chosen. In
that case it is quite accetable to invent some reasonable
numbers rather than takime to research them. Place any detailed
calculations in an appendix, (not counted in the page limit),
after the references. Please submit your case for grading by the
end of this module.
It is expected that you will use information from the
background readings as well as the case articles and any good
quality sources you can find. Please cite all sources and
provide a reference list at the end of the paper.
The following will be assessed in particular:
· Your demonstrated understanding of the marketing concepts
central to the case question.
· Your demonstrated understanding of factors related to the
development of an effective pricing method through the analysis

you conduct in the context of the case.
The criteria used for assessment will be those explained on the
MOD01 Home page, namely:
· Focus.
· Breadth.
· Depth.
· Critical thinking.
· Effective and appropriate communication skills.
Rev. May 31, 2013

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