Evaluate The Corporate Level Strategy Of Victory Motorcycles

Evaluate The Corporate Level Strategy Of Victory Motorcycles To Determ

Evaluate The Corporate-Level Strategy of Victory Motorcycles to determine whether you believe the strategy is appropriate to offset forces in the industry. Provide specific examples to support your response. Make recommendations for improving this strategy as well as describing any challenges you foresee in executing those recommendations. Provide two (2) specific examples to support your response.

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Evaluate The Corporate Level Strategy Of Victory Motorcycles To Determ

Victory Motorcycles, once a subsidiary of Polaris Industries, was established in 1998 with the goal of competing in the premium motorcycle segment. The company’s corporate-level strategy primarily focused on differentiation through innovative design, technological advancement, and branding that appealed to a niche market of motorcycle enthusiasts seeking high-performance, stylish bikes. Evaluating whether this strategy effectively offset the competitive forces within the motorcycle industry involves examining industry dynamics, the company’s strategic positioning, and the broader market environment.

Industry forces, as described by Porter's Five Forces model, include intense competition, bargaining power of suppliers and buyers, threat of new entrants, and the threat of substitutes. The motorcycle industry is characterized by a few dominant competitors such as Harley-Davidson, Honda, Yamaha, and Ducati, each with established brand loyalty and extensive distribution networks. Victory’s strategy aimed to differentiate itself by emphasizing American ruggedness, innovative features, and customization options. This differentiation was intended to counteract the intense competitive rivalry by carving out a unique market segment.

However, despite these strategic efforts, Victory Motorcycles faced significant challenges. The company’s market share remained relatively small compared to industry giants like Harley-Davidson, which capitalized on brand loyalty and a robust dealer network. Furthermore, the premium motorcycle market is sensitive to economic fluctuations; during downturns, consumers are less inclined to invest in luxury items such as high-end motorcycles. Victory’s strategy of differentiation alone was insufficient to fully offset these industry pressures, especially as the company lacked the extensive resource base and brand recognition of its larger competitors.

In 2017, Polaris decided to cease production of Victory Motorcycles, signaling that the company’s strategy did not achieve the desired competitive positioning. This decision underscores the importance of leveraging a multifaceted strategy that includes cost leadership, operational efficiencies, and broader market penetration to offset industry forces effectively.

Recommendations for Improving Strategy

1. Diversification and Market Expansion: Victory could have focused on expanding its product line to include electric motorcycles or targeting emerging markets such as Asia and Africa. Electric motorcycles represent a growing segment with increasing environmental awareness globally, and entering this market early could have provided a competitive advantage. For example, Harley-Davidson’s launch of electric models like LiveWire illustrates the significance of innovation in capturing new customer segments.
2. Strategic Alliances and Brand Positioning: Forming alliances with technology firms or lifestyle brands could have enhanced Victory’s brand appeal and technological capabilities. Collaborations with clothing brands or accessory companies might have broadened its brand ecosystem, similar to Ducati’s success with lifestyle collaborations. Such alliances could also improve supply chain efficiencies and reduce costs.

Challenges in Implementing Recommendations

Implementing diversification into electric motorcycles involves significant R&D expenses and technological development, which might strain Polaris’s resources or distract from core competencies. Moreover, entering emerging markets entails navigating complex regulatory environments, establishing distribution channels, and adapting marketing strategies to local consumer preferences. These challenges necessitate careful strategic planning, substantial investment, and a deep understanding of local markets.

Conclusion

Overall, Victory Motorcycles’ corporate-level strategy centered on differentiation was appropriate in principle; it sought to leverage unique brand positioning to offset industry rivalry. However, the strategy fell short due to limitations in brand recognition, market reach, and resource strength compared to competitors like Harley-Davidson. To enhance their competitive stance, strategic diversification, technological innovation, and expanded market penetration are recommended. These approaches, though promising, come with inherent challenges that require careful management to succeed in a highly competitive and dynamic industry environment.

References

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• Harley-Davidson. (2020). Harley-Davidson Electric Motorcycle Portfolio. Retrieved from https://www.harley-davidson.com
• Polaris Industries. (2017). Victory Motorcycle Discontinuation Announcement. Polaris Industries Press Release.
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