Friday, October 18, 2019
Case analysis Essay Example | Topics and Well Written Essays - 500 words - 5
Case analysis - Essay Example This is not the case in other countries such as the U.S. and the European markets, where there seem to have a relatively sluggish economic growth consequently resulting to decreasing disposable income. The levels of disposable income in any particular country will affect the demand of the motorcycles. Most people will tend to determine whether a motorcycle is a luxurious good or an alternatively cheaper means of transport. If for instance the motorcycle is considered a luxurious good, any sort of an increase in the level of disposable income would lead to increase in demand of the motorcycle and vice versa. On the contrary, if a motorcycle is widely considered as a cheaper option for transport, decrease in the level of disposable income will increase the demand for the motorcycle and vice versa. The company scenario planners take the varying levels of income into consideration. They plan to establish market segments where different motorcycles would be sold depending on the needs of the market. In addition, scenario planning has led to developing strategies that ensure that motorcycles are developed to meet the different economic conditions (Fred, 2011). The company will thus be in a better position to compete well in the market. Other influences such as trade barriers in terms of tariffs are highly affecting the number of motorcycles imported within any particular country. This excludes the countries that are engaged in agreement of free trade and reduction of trade barrier. The free trade agreement has also increased the opportunity of international trade of motorcycle. Legislations regarding noise and emission levels have set the standards within certain countries. Thus, the motorcycles have to be made to comply with such standards (Fred, 2011). Harley Davidson Company continuously monitors the changes of laws and regulations in the market and other political issues that might hamper the sales efforts such as war. Over the
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