Hog Case Study Essay

5359 Words Apr 11th, 2008 22 Pages
Industry and Competitive Frame

Industry Structure: Fragmented

Product Differentiation: Differentiated

Technological Change: Slow

Product/Service Technology: High

Location: Global

Model of Transition: Industry Life Cycle

Phases of Transition: Late Growth / Early Maturity

Product Life Cycle: Late Growth / Early Maturity

I. Uncertainties that may affect industry structure &
II. The plausible assumptions about each important causal factor

The uncertainties that exist for the Motorcycle Industry are fluctuations in the following categories: government regulations, price of supplies, Fuel Cost, Global Demand for motorcycles, Product innovation, customer loyalty value (CLV), target market, and market share.
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III. Plausible assumptions about each important casual factor The most important casual factors are the level of quality of the motorcycles, product innovation and marketing.

These three factors are predetermined meaning that change is likely to happen and is largely predictable and they are constant meaning that these areas in the industry are unlikely to change. However, product innovation is uncertain meaning that product innovation depends on other irresolvable uncertainties in the industry. To begin with the first important casual factor the level of quality, we know that if the level of quality for motorcycles increase, it is likely to lead to an increase in other areas as well such as price, sales, market share and customer retention. (Cash flow, interrelationship, linkages and value added).
The next important casual factor is product innovation. Similar to quality, if product innovation increases it is likely to lead to increases in other areas such as price, sales, market share, customer retention and gaining new customers.
Lastly, marketing is another important casual factor. We know that if marketing is increased and if it becomes more innovative in ways there will be increases in other areas such as sales, market share, customer retention, new customers, advertising and promotion, branding and in relationship marketing resulting in value added.

IV. Assumptions about individual factors into internally consistent

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