Case Analysis of Polaris and Victory Entering and Growing the Motorcycle Business

Based on the case study provided, this paper seeks to analyze the decision of Polaris and Victory to enter the motorcycle business. It will provide for the product research and the development process involved as well as the decisions on its production and value chain activities. Specifically, the paper will provide for the major strategic issues presented in the case, as well as make recommendations to address these issues. Overview of the Case In seeking to expand, Polaris considered various industries in terms of their size, competition, level of service and the market trends before it made the decision to venture into the production of off-road motorcycles. Polaris had impressive feedback from its loyal customers. Polaris also factored in the lengthy deliveries of Harley-Davidson.

This was perceived as a vulnerability to the 54% market share held by Harley-Davidson if a new entrant would deliver a new product with superior functionality in a short period of time. In addition, Polaris believed that it could offer lower prices to help enhance its competitive edge. Polaris also strategically considered branding its motorcycles as “American Made”. This would help it compete strongly against its Japanese competitors. In this move, Polaris gave attention to power and handling as the key areas of motorcycle performance and leveraged it with its strengths in design, engineering and manufacturing. In addition, it made the design decisions based on the customer preference, costs as well as sourcing considerations. The company also did extensive benchmarking which helped it to develop motorcycles with 50% additional horse power.

The combination of all these strategies helped Victory emerge as a class leader in terms of quality, style and innovation. Therefore, with its high quality and competitive price point, Polaris was able to effectively compete with high-profile industries such as Harley-Davidson. Polaris also overestimated the influence of the American Made branding strategy while underestimating the strength of Honda as the largest motorcycle producer globally. Current Market Conditions Facing Polaris Since it was introduced into the market, Victory has continually released innovative and futuristic cruisers. Besides, the company has acquired, intergrated and relaunched the legendary Indian Motorcycle brand to help enhance its brand recognition in the heavy wright segment. This move has also helped Victory expand its spectrum in the motorcycle market and enhanced its growth.

Moreover, the company has acquired part of Brammo and entered into a joint venture with Eicher Motors. These include a new electric motorcycle known as Live Wire. This is known for its speed and quiet motor. The motorcycle industry is a highly competitive market. While Polaris failed to appreciate the possible retaliation strategies from its competitors, they reacted appropriately. For example the Japanese manufacturers made improvements in their motorcycles and improved their presence in the heavy weight category. Moreover, Polaris have also identified that the demand for the Victory model among its existing customers is not enough to steer the organization onto the desired level of growth. There is also a need for greater exposure and more presence and positioning in the on-road market segment.

Therefore, in order to address these issues, Polaris must employ various appropriate strategies. The recommendations are outline below. Recommendations Polaris can employ a few strategies to help it deal with the current challenges it is facing in the market. On the contrary, this strategy might be disadvantageous because the product might not be unique, might be easier to imitate and the products might lose their value. Market focus: This refers to the identification of a specific market. Therefore, Polaris can identify and concentrate on a specific market. Polaris is able to create niche products that can be targeted to a specific market. This strategy is advantageous because the customers will be served better and it is possible to cut a niche in the market.