Suggest One Way The Company You Researched Can Improve

From The E Activity Suggest One Way The Company You Researched Could

From the e-Activity, suggest one way the company you researched could increase its level of value-creating diversification, i.e., suggest a way to expand its corporate level strategy. Provide specific examples to support your response. From the e-Activity and the case study, evaluate the business-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 specific examples to support your response.

Paper For Above instruction

In the competitive landscape of the motorcycle industry, Victory Motorcycles has carved a niche by focusing on high-performance, American-made bikes that appeal to enthusiasts who seek innovation and distinctiveness. To further enhance its strategic positioning, Victory could consider diversifying into the electric motorcycle segment. This move aligns with global trends toward sustainable transportation and could significantly increase value-creating diversification. Specifically, the company could develop a line of electric sport bikes or cruisers leveraging existing manufacturing expertise and brand loyalty, thus expanding its market reach and product portfolio.

Introducing electric motorcycles would strengthen Victory’s corporate-level strategy by tapping into rapidly growing electric vehicle markets. For example, companies like Harley-Davidson have begun transitioning into electric vehicles with models like the LiveWire (Harley-Davidson, 2022). Victory's entry into this segment could attract environmentally conscious consumers and urban commuters, creating a new revenue stream while capitalizing on the shift toward sustainability. The integration of electric powertrain technology with Victory’s emphasis on performance could differentiate their offerings from competitors, positioning Victory as an innovative leader in electric motorcycles.

Regarding the business-level strategy of Victory Motorcycles, the company has historically employed a differentiation strategy by emphasizing unique design, American craftsmanship, and customized features. This approach has allowed Victory to establish a strong brand identity within the niche market of performance motorcycles, competing against larger firms like Harley-Davidson and Honda. However, given the intensifying competition and shifting consumer preferences, the current differentiation strategy may face challenges in sustaining growth.

To remain competitive, Victory must continuously innovate, not only in product design but also in technology and customer engagement. For example, integrating smart technology features such as connectivity, GPS navigation, and rider-assist systems could enhance perceived value. An improvement could include developing a comprehensive digital ecosystem that allows riders to connect with their bikes and other riders, fostering a community and enhancing brand loyalty.

Despite these strategies, several challenges could hinder execution. The high costs associated with developing electric vehicle technology and integrating advanced features could impact profitability. Moreover, the shift toward electric motorcycles may require significant investments in manufacturing infrastructure and supply chain adjustments. Resistance from traditional consumers loyal to combustion engine bikes could also pose a barrier, requiring Victory to carefully manage brand perception and customer expectations.

In conclusion, by diversifying into electric motorcycles, Victory Motorcycles can enhance its value-creating growth strategy and better offset declining sales or shrinking market share in traditional segments. Simultaneously, refining its business-level strategy through technological innovation and enhanced customer engagement can position Victory to adapt to industry trends. While challenges such as technological costs and market acceptance remain, proactive strategic planning and investment can help Victory sustain its competitive edge in a rapidly evolving industry environment.

References

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