Motorcycle industry analysis Essay Example for Free

Motorcycle effort analysis EssayDefinition Motorcycles f wholly into the category called Recreational Vehicle, Motorcycle and Boat Retail Industry. These are companies that retail recreational vehicles, boats, drivecycles, jet skis, and/or related accessories. In Hoovers classification, based on the North American Industry Classifications System (NAICS) and the older U. S. Standard industrial Classification (SIC) system, motorcycles fall under a low-spiriteder subcategory called Motorcycle, ATV, and Personal Watercraft Dealers Industry.This U. S.industry comprises establishments primarily engaged in retailing new and/or used motorcycles, motor scooters, motorbikes, mopeds, take-road all-terrain vehicles, and personal watercraft, or retailing these new vehicles in combination with repair services and selling replacement parts or accessories. Statistics In terms of spirit at the whole industry, motorcycle dealers make up a majority of the industry when compared with ATVs and personal watercraft dealers. The chart below shows statistics from 2002 comparing the motorcycle dealers with all other motor vehicle dealers in the industry.As the charts illustrates, motorcycle dealers made up 91. 5% of gross sales in this industry, while ATVs and personal watercraft dealers l iodine(prenominal) contributed to 8. 5% of sales. Year 2002 Motorcycle DealersAll other motor vehicle dealers (ATV personal watercraft dealers) Total Establishments4,3845144,898 Sales ($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. hoovers. com Analyzing information for motorcycle dealers between the years of 1997 and 2002 reveals some important information.The results show the growth and percent changes in certain categories pertaining specifically to the motorcycle dealer industry. While the spell of establishments only increased approximately 21 percent, the amount of sales increa sed almost 99 percent. The annual payroll (excluded from the graph) increased 100 percent and the remunerative employees rose by 59 percent. These figures, illustrated through a bar graph below, indicate a growing industry especially for those companies already in the argument with establishments formed. Motorcycle Dealers.Although there are many an(prenominal) nonfranchised retailers in the industry, 80 percent of the industrys business is made up of franchised vent-holes. The average franchised motorcycle outlet generates sales and services almost six times that of nonfranchised outlets. In addition to selling motorcycles, dealers make up almost half of their business through sales of parts, accessories, and apparel. In 1997 approximately 6. 5 million motorcycles were owned in the United States, with California having almost dickens times more retail outlets than any other state.In terms of rider distribution, California, Texas, New York, Florida, and Ohio accounted for more than one-third of all motorcycle ownership in the U. S. In terms of a target market there seems to be no specific or clear differentiation. down the stairs are some statistics that allow one to make judgments based on the Harley Davidson demographic 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 havent owned a motorcycle Background and Competition.The earliest motorcycles were basically bicycles powered by small engines, and the motorcycle was considered a relatively cheap alternative to the more expensive, early automobiles. Many U. S. manufacturers produced motorcycles before World War I, contributing to a dynamic, if not booming, municipal market. Harley Davidson, Orient, Henderson, Cyclone, and Indian were the primary competitors at that time. Henry Fords affordable Model-T, however, doomed many motorcycle manuf acturers. In fact, by the end of the Great Depression, the only remaining manufacturers and sellers of motorcycles were Indian and Harley-Davidson.Indian closed down production and distribution in 1953. The late 1950s and early 1960s saw the first influx of low-priced, smaller Nipponese motorcycles and scooters into the United States. Honda began U. S. distribution of its products in 1959, with the slogan, You meet the nicest people on a Honda, to combat the negative image associated with the sport. Yamaha starting selling motorcycles in the United States during 1960 Suzuki followed in 1963 and Kawasakii joined the competition in 1967. BMW opened a U. S. distribution arm in 1975, incorporating in New Jersey.Harley-Davidson ended years of private ownership in 1965 with a public offering of its stock, and eventually merged with industrial giant AMF in 1969. The oil crisis in the 1970s prompted the popularity of the smaller motorcycles, mopeds, and scooters that were made primarily by Japanese manufacturers. Dealers sold vehicles to those interested in conserving gas and finding cheap transportation. Harley-Davidsons market share, already dropping, was further threatened by Hondas 1969 entrance into the heavy and super heavyweight segment of the market.By the late 1970s Harley-Davidson faced severe production quality problems in addition to stiff competition. A management buyout in early 1981 set the course for the companys revitalization. It was protection under higher tariffs however, recommended by the International Trade Commission that helped shut Honda out of Harley-Davidsons key market.In response, Japanese manufacturers evaded the tariffs by setting up assembly plants in the United States. Harley-Davidsons resurrection and Hondas sagging sales worked to even the motorcycle market by the early 1990s. (www. answers.com/topic/motorcycle-dealers) Below is a pie chart that shows the motorcycle industry major players and their market share relative to one an other. The boastfully 4 Japanese have 70% of the groovy dollars in the motorcycle industry. BMW and H-D combine for another 26%. Everyone else is pretty much a rounding error. At least by this measure these six companies (the Big 4 Japs, BMW, and H-D) utterly dominate the motorcycle market in every way that really matters. http//www. muddywatersmx. net Industry Trends and Current Events Motorcycling remains one of Americas most popular forms of recreation and transportation.The number of people who enjoy motorcycle activities is comparable to the number of people who engage in fishing, golfing, and camping. Because there are many sizes of vehicles available, motorcycling has become a family recreational activity. In addition to providing enjoyment, motorcycles, scooters, and all-terrain vehicles are used in industry in various ways. (www. answers. com/topic/motorcycle-dealers) The retail motorcycle, moped, and all-terrain industry is strongly affected by national economic trends . Recessionary and expansionary trends essentially dictate the retail consumption levels of vehicles. According to Irwin Broh Associatess 1998 survey, the average motorcycle rider was a 38-year-old married male with a college education earning $44,250 per year. These older, more affluent riders of 1998 could afford heavier, more comfortable, more expensive motorcycles. Also, the ranks of women motorcyclists continued to grow in the 1990s, emergent from 6. 4 percent of riders in 1990 to 8. 2 percent in 1998. (www. answers. com/topic/motorcycle-dealers) The growth from exports became a major player for the motorcycle industry in 2000. The charter by the foreign market was expected to grow well into 2007. The chart below shows the Top Destinations for U. S Motorcycles and Parts Exports by country for 2002 to 2003. The top two major players are Canada and Japan. On December 23, 2003, the Environmental Protection Agency (EPA) enacted the newest set of emission standards for highway m otorcyclesBeginning in 2006, motorcycle manufacturers would have to bowdlerise emissions of HC and oxides of nitrogen by 60 percent. (www. answers. com/topic/motorcycle-dealers).