Motorbike industry analysis essay

Explanation Motorcycles get caught in the category called Recreational Vehicle, Motorbike and Vessel Retail Sector. These are companies that retail recreational automobiles, boats, motorbikes, jet skis, and/or related accessories. In Hoover’s category, based on the North American Industry Classifications System (NAICS) plus the older U. S. Regular Industrial Classification (SIC) program, motorcycles come under a smaller subcategory called Motorcycle, ATV, and private Watercraft Retailers Industry.

This kind of U. T. industry comprises establishments mostly engaged in retailing new and used motorbikes, motor scooters, motorbikes, mopeds, off-road all-terrain vehicles, and private watercraft, or retailing these kinds of new cars in combination with repair services and selling auto parts or equipment.

Statistics With regards to looking at the entire industry, motor bike dealers make-up a majority of the industry as compared to ATVs and personal watercraft dealers. The chart below displays statistics via 2002 assessing the motorbike dealers using other motor vehicle dealers in the industry.

As the charts displays, motorcycle retailers made up 91. 5% of sales in this industry, while ATVs and private watercraft dealers only contributed to 8.

5% of sales. 12 months 2002 Motor bike DealersAll various other motor vehicle traders (ATV & personal boat dealers) Total Establishments4, 3845144, 898 Revenue ($1, 000)14, 636, 299 (91. 5%)1, 353, 829 (8. 5%)15, 990, 128 (100%) Annual Payroll1, 429, 316106, 6811, 535, 997 Paid Employees46, 0374, 18850, 225 www. industries. vacuums. com Analyzing data intended for motorcycle retailers between the years of 1997 and 2002 uncovers some information.

The outcomes show the development and percent changes in specific categories related specifically to the motorcycle supplier industry. As the number of organizations only increased approximately twenty-one percent, the amount of sales elevated almost 99 percent. The annual payroll (excluded through the graph) increased 100 percent plus the paid staff rose by simply 59 percent. These numbers, illustrated through a bar chart below, reveal a growing sector especially for those companies currently in the business with establishments created. Motorcycle Sellers.

Although there are many nonfranchised suppliers in the industry, 80 percent of the industry’s business comprises of franchised stores. The average franchised motorcycle wall socket generates revenue and services almost six times those of nonfranchised retailers. In addition to selling motor bikes, dealers constitute almost 50 % of their organization through product sales of parts, accessories, and apparel. In 1997 roughly 6. five million motorcycles were held in the United States, with California having almost twice more stores than any other state.

In terms of rider division, California, The state of texas, New York, Fl, and Kansas accounted for a lot more than one-third of most motorcycle possession in the U. S. With regards to a target market there seems to be no certain or very clear differentiation. Listed here are some figures that allow one to make judgments based upon the Harley davidson Davidson market profile. Gender20002001200220032004 Male91%91%91%90%90% Female9%9%10%10%10% Purchasers (2004) ¢ 42% Owned Harley-Davidson motorcycle previously ¢ 31% Coming off of competitive motorcycle ¢ 27% New to motorcycling or have not owned a motorcycle Background Competition.

“The earliest motorcycles were essentially bicycles powered by little engines, as well as the motorcycle was considered a cheap alternative to the more expensive, early cars. Many U. S. suppliers produced motor bikes before Globe War I, contributing to a dynamic, if perhaps not booming, domestic market. Harley Davidson, Orient, Henderson, Cyclone, and Indian were the primary competitors at that time. Henry Ford’s inexpensive Model-T, yet , doomed various motorcycle suppliers. In fact , right at the end of the 1930s, the only leftover manufacturers and sellers of motorcycles had been Indian and Harley-Davidson.

Indian closed down production and distribution in 1953. The late 1950s and early sixties saw the first influx of low-priced, smaller Western motorcycles and scooters in the United States. Honda began U. S. division of usana products in 1959, with the slogan, “You meet the nicest people on the Honda,  to fight the bad image linked to the sport. Yamaha starting advertising motorcycles in america during 1960; Suzuki used in 1963; and Kawasakii joined the competition in 1967. BMW opened a U. S. division arm in 1975, including in New Jersey.

Harley-Davidson ended years of personal ownership in 1965 with a community offering of its stock, and eventually merged with industrial giant AMF in 69. The petrol crisis in the 1970s prompted the popularity of the smaller motorcycles, mopeds, and scooters that were made primarily by Japanese suppliers. Dealers sold vehicles to people interested in conserving gas and finding affordable transportation. Harley-Davidson’s market share, currently dropping, was further threatened by Honda’s 1969 entry into the hefty and extremely heavyweight segment of the industry.

By the overdue 1970s Harley-Davidson faced serious production top quality problems in addition to stiff competition. A management acquistion in early 1981 set the course to get the company’s revitalization. It was safeguard under larger tariffs yet , recommended by the International Operate Commission that helped shut Honda away of Harley-Davidson’s key marketplace.

In response, Western manufacturers evaded the tariffs by setting up assembly vegetation in the United States. Harley-Davidson’s resurrection and Honda’s drooping sales worked to however, motorcycle market by the early on 1990s.  (www. answers. com/topic/motorcycle-dealers) Under is a curry chart that shows the motorcycle industry major players and their market share relative to one another. “

The best 4 Western have 70 percent of the capital dollars inside the motorcycle market. BMW and H-D combine for another 26%. Everyone else can be pretty much a rounding error. For least with this measure these six corporations (the Big 4 Japs, BMW, and H-D) utterly dominate the motorcycle market in every way that really issues.  http://www. muddywatersmx. net Industry Tendencies and Current Events “Motorcycling remains among America’s most popular forms of recreation and transportation.

The number of people who appreciate motorcycle actions is comparable to the number of people who take part in fishing, playing golf, and camping. Because there are a large number of sizes of vehicles offered, motorcycling has changed into a family leisure activity. Furthermore to rendering enjoyment, motorbikes, scooters, and all-terrain cars are used in industry in various ways.  (www. answers. com/topic/motorcycle-dealers) “The retail motorbike, moped, and all-terrain sector is strongly affected by countrywide economic trends. Recessionary and expansionary trends essentially influence the retail consumption amounts of vehicles.

 According to Irwin Broh & Associates’s 1998 survey, the average motor bike rider was obviously a 38-year-old married male having a college education earning $44, 250 annually. “These elderly, more affluent riders of 1998 can afford heavy, more comfortable, more costly motorcycles. Likewise, the rates of women bikers continued to grow in the 1990s, rising from six. 4 percent of cyclists in 1990 to 8. a couple of percent over 10 years ago.  (www. answers. com/topic/motorcycle-dealers) “The growth from export products became an important player to get the motor bike industry in 2000.

 The demand by the foreign market was supposed to grow very well into 2007. The chart below shows the Top Destinations for U. S Motorcycles and Parts Exports based on country for 2002 to the year 2003. The top two major players are Canada and Asia. “On 12 , 23, the year 2003, the Environmental Protection Agency (EPA) enacted the latest set of emission standards intended for highway motorcycles¦Beginning in 2006, motorcycle manufacturers will have to reduce exhausts of HC and oxides of nitrogen by 70 percent.  (www. answers. com/topic/motorcycle-dealers).

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