market potential and outlook analysis essay

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Forecasting, Honda, Harley Davidson, Hybrid Automobiles

Excerpt from Essay:

The presumptions of industry structure and pricing are based on the market stocks of the leading competitors in the motorcycle marketplace including Harley-Davidson with 65% and Honda with doze. 9%. There are over 45 different manufacturers of motorcycles globally who comprise the remaining 22% from the worldwide marketplace (Murphy, 2008). Gaining circulation for a fresh motorcycle version will be difficult given the concentration amount of competitors on the market. As motorbikes are considered discretionary purchases, they are influenced by consumer emotion index, the level of per household disposable profits, the downstream demand for motor bike dealership and repair, plus the available time consumers have got for with them (Diamond, 2008). All of these factors are taken into consideration in the factoring of the two baseline motor bike industry outlook and the cross motorcycle forecast as well.

Product sales and Device Forecasts

Applying exponential smoothing and a normal sale value of $9, 100, the forecast pertaining to the Carolina Swagster cross types motorcycle is over. In 2011, it is projected you will see 6, 544 total products that consist of the total available market of hybrid motorcycles, worth $59M in revenue. The market will grow to 7. 41 units this year, achieving a revenue level of $64M. In 2013, the entire available market will drop in size a little bit to 6, 842 units and $62M in revenue. Based on the larger motorcycle market being inspired by broader economic elements, 2014 is usually expected to always be lower in require, generating a few, 867 devices in total to get a market scale $53M in revenue general. By 2015, the market will need innovation to carry on to drive its growth, as the total industry will be five, 605 products and total available market revenue will probably be $51M. Stand 1, Marketplace Analysis and Forecasts with the U. S. Motorcycle Market, provides an introduction to these characters.

Table one particular: Market Evaluation and Forecasts of the U. S. Motor bike Market

As Harley-Davidson and Honda rule the market, going out of 40 other vendors compete for 22% of total sales, the odds of a fresh vendor getting market share having a hybrid-based motorbike will most likely yield 1% market share in the first year, accompanied by 5% in year 5 and seven percent in 5. This would equate to 654 units in 2011, 704 in 2012, 684 in 2013, and 234 units in 2014 and 392 devices in 2015. These forecasts show that distribution is important for the achievements of the product and gaining sellers and marketers quickly is important to gain market share.


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