Read the Case study Polaris and Victory: Entering and Growing the Motorcycle Business and answer the following questions:
Only Use Evidence From The Case Study Provided
To gain the best possible grades, please pay attention to: presentation of analysis, application of appropriate tools and use of case evidence.
Q1. Using only Porter’s Five Forces model, fully analyse the competitive environment in the U.S. motorcycle industry based only on the case study timeline. List all of the forces and apply reasoning to each to support your argument.
Q2. Conduct a Value Chain analysis to comprehensively assess Polaris Industries motorcycle division capabilities. In doing so, identify, appraise and evaluate its core competencies, and argue how these core competencies underpin its choice of generic competitive strategy.
To answer the questions in a robust and thorough way, please look at the following guidelines.
Q1. Review Porter’s Five Forces model (Unit 3) and apply it to analyse the US motorcycle industry.
This is an industry-level analysis of the competitive environment – part of external environment analysis. At this stage do not focus too much on how Polaris Industries managed to overcome the forces and successfully compete in the industry, as this is the basis for the analysis of its internal capabilities in question 2.
The purpose of the Five Forces Model is to gain a deeper understanding of the intensity of competition in the industry and which forces are the key influencers. The more intense the competition, the less attractive the industry, the lower the average level of industry profitability. The reverse applies to less intense levels of competition. You must analyse each force individually through an examination of the structural factors which determine the impact of this force.
The discussion of how these factors influence each force means that your answer will go beyond a simple description of each force. For each force sufficient arguments should be presented as to whether the force’s influence is high, medium or low. Your arguments should reach formal conclusions:
- Is this an attractive/unattractive industry (high/low/average profit margins) as result of the intensity of the competitive forces?
- What are the most significant forces facing the US motorcycle industry in the future that all competitors should take into account in their strategy formulation?
Q2. Conduct an internal analysis (Unit 4) of Polaris Industries capabilities linked to its motorcycle division, then to identify and evaluate its core competencies:
- You must go further than simply describing what it does. You must describe each activity through a discussion of what it does well (strengths) and what areas it needs to improve (weaknesses to address).
- To identify Polaris Industriescore competencies, analyse critical linkages/processes in the Value Chain, some of which should be the basis for your choice of core competencies (CCs). The explanation of Value Chain linkages is an intermediary stage to identifying CCs. Assess which linkages are “core” by applying either Barney’s or Grant’s criteria.