Learn E Activity And Case Study 29 P 419

From The Learn E Activity And The Case Study 29 P 419 In The Textboo

From the Learn E activity and the case study 29 (p. 419 in the textbook), 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.

Victory Motorcycles has historically positioned itself as a premium brand within the motorcycle industry, leveraging differentiation to appeal to a niche segment of consumers seeking high-performance and stylish bikes. Its corporate-level strategy revolves around innovation, broad product diversification, and global market expansion. However, assessing whether this strategy effectively counters industry forces requires an understanding of the competitive landscape, industry trends, and the company's internal capabilities.

One of the key strengths of Victory Motorcycles' strategy lies in its differentiation approach. The company offers a diverse product portfolio that includes not only motorcycles but also snowmobiles and watercraft, consolidating its presence in recreational vehicle markets. This product diversification allows Victory to buffer itself against fluctuations in the motorcycle sector alone, providing cross-market opportunities and broader revenue streams. For example, expanding into watercraft has enabled Victory to appeal to consumers interested in multiple recreational products, creating brand loyalty and a competitive edge.

Furthermore, Victory’s international market targeting across continents such as America, Europe, China, Russia, Brazil, and Australia signifies a broad geographic scope intended to offset regional industry downturns. By employing innovative designs and maintaining high quality standards, the company attempts to sustain a premium brand image that commands customer loyalty despite aggressive competition. An example includes their unique motorcycle designs that emphasize both aesthetics and performance, appealing to enthusiasts worldwide.

However, the industry faces significant competitive threats, notably from established brands like Harley-Davidson, Ducati, and emerging electric vehicle manufacturers such as Zero Motorcycles and Tesla. These competitors possess strong brand recognition, technological innovation, and economies of scale that can threaten Victory’s market share. Notably, Harley-Davidson's recent push into electric motorcycles demonstrates industry shifts and the importance of sustainable transportation solutions. Victory's current strategy seems somewhat reactive, especially in the context of the rising importance of environmental sustainability.

To improve its corporate-level strategy, Victory should consider intensifying its focus on electric and environmentally friendly motorcycles. Developing innovative electric bikes could align with industry trends toward sustainability and help counter competitors who are investing heavily in electric vehicle technology. For instance, Harley-Davidson’s LiveWire model exemplifies how electric innovation can attract a new customer segment and strengthen brand positioning.

Moreover, Victory can enhance its strategic differentiation by investing in advanced technologies such as autonomous driving features, connectivity, and smart accessories for motorcycles. These features would appeal to tech-savvy consumers and differentiate Victory from competitors with conventional offerings. Strategic partnerships with technology firms could facilitate rapid development of such innovations.

Nevertheless, there are notable challenges in executing these recommendations. Transitioning to electric vehicles involves significant capital expenditure, technological development, and establishing infrastructure for charging stations. Additionally, shifting consumer preferences may demand a rebranding effort to position electric motorcycles as desirable and premium. Supply chain adjustments and workforce training will also be necessary to support technological innovations, which could pose operational risks and delays.

Furthermore, entering the electric motorcycle market increases competition from both traditional motorcycle manufacturers and new entrants specialized in electric vehicles. Victory must differentiate not only through product features but also through marketing strategies that educate consumers about electric bikes' benefits and establish a strong brand presence in this emerging segment.

In conclusion, Victory Motorcycles’ current corporate-level strategy of product diversification and global expansion offers resilience against some industry forces but may not be sufficient amid rapidly evolving industry dynamics, particularly regarding sustainability and technological innovation. To remain competitive, Victory should accelerate its development of electric motorcycles, adopt emerging technologies, and forge strategic alliances, understanding that these initiatives entail considerable investment and operational risks. By embracing industry trends and aligning its strategy accordingly, Victory can strengthen its position and better offset the intensifying competitive pressures.

References

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• Harley-Davidson Inc. (2021). Harley-Davidson electrifies the future with the LiveWire. Harley-Davidson Annual Report.
• Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
• McKinsey & Company. (2020). The rise of electric motorcycles: Market insights and forecasts. Retrieved from https://mckinsey.com
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• Zero Motorcycles. (2023). Zero Motorcycles’ innovation in electric bikes. Retrieved from https://zeromotorcycles.com