Polaris Industries is an American industry that deals in the manufacture of the ATVs, neighborhood electric vehicles, and motorcycles, through though its victory motorcycle subsidiaries and also through the motorcycle subsidiary of India.it purchased these subsidiaries in 2011 and it no longer produces watercraft. It has a strategy like the supply all-terrain vehicle and the snowmobile engines supply to the American market and the whole world. There has been continuous increase and improvement in the application of the knowledge and technology in the production and the supply. Polaris, therefore, has had to modify its strategies and come up with the procedures that are the best fitting in the world to be able to compete for the market well. The Polaris industries have over the time excelled in their processes that have won the interest of the world at large. The strategies that are set for the operation of the company are particular and have been the reason for the company's excellent performance in the market. The organization has cute strategies that are in line with the set objectives and hence aiding the achievement of the industry goals.
Polaris produces and sells the accessories for replacement of parts of the tracks and the helmets. At the same time, they proved the jackets for recreation together with pants and hats. It has around 30% of the revenue derived from the outside USA with almost 4000 employees. The strategy of the Polaris to invest in the human resource and ensuring each has the required skills to be applied in the fields they operate in has accrued to more significant achievements of the organization stand out in the market. Polaris as well invests in partnership with other popular organizations to help it market itself and to be able to acquire the new ideas that are relevant to its operations. It formed the connection with the Fuji heavy industries that are also recognized for their advanced technology in mechanical supply and works. As per the revenue breakdown of 2016, Polaris had 69% off-road vehicles, 7% on-road vehicles, 9% snowmobiles and 14% garments and parts. Polaris has also applied the skill of innovativeness and aggressiveness in its production to overrule the market. It managed to introduce the Indian chief model in 2014 which was the first model designed in the same nature and kind. It entered the model ahead of the other industries and hence was able to win over the market demand and to increase and ease its operation by using the model. This, in turn, was the strength it had over the other many industries that competed for its market. The strategies have worked well for Polaris and a recognizable improvement and this depicted in its outstanding service offers in the world's demand for its products.
There are several explications of the strategic issues that face the Polaris industry. In as much as the services of the company are implicit. Still, it faces some of the particular activities that are on associated by it alone. There are several threats to the strategic planning of the Polaris industries. It has been challenged for the reorganization to solve and tom curbed these drawbacks even though the industry is considered to have had one of the most developed strategic plans. These threats include;
The fringe put on the handlebars of the motto bikes. Polaris industry is one of the largest motto bike major and seller in the market. Even though some of the parts of the appliances provided and made are not considered as other. They are overlooked, and this makes them appear as if they are of right in the making. There is a lot of effort put on the other sophisticated parts while the simple elements like the handles are not regarded as much as the other parts. Many buyers are fond of buying the protective and the gears before they consider other accessories.
Polaris also faces stiff competition from the other industries that manufacture off-shore vehicles, motorcycle and the snowmobiles. There is competition more or so on the factors that regard the prices and price setting, reliability, quality, product feature and styling and even the warranties to be offered to the buyers and other clients. There are many industries in the USA that Polaris competes with Polaris and also other international industries as well compete it for the same market. Many of these companies have diversified financial bases and the resources for marketing that are better than those of Polaris. Polaris also competes with many other recreational products that operate in a very intensively competitive environment which are likely to result to price increases hence risk affecting the profit margins.
Many acts and regulations control the operations of Polaris. These include the American laws concerning the safety, environment and other laws that are enforced by the federal government of US. There are also international laws that also control the operation of the Polaris industries. The vehicles are expected to be certified by the US Environmental Protection Agency (EPA) and must also comply with both the noise and emission standards. Besides, there are considerations of making the emission standards more stringent by the European Unions and Japan with the support if some emerging markets. The European Union already fringed the rules than those of the EPA. These standards are likely to add additional costs and even the obligations on the operations of the company. This will ultimately result in the increased production costs and reducing the profit margins for the sales for the sales of the products of Polaris.
Polaris deals with the rear earth metals such as aluminum, petroleum-based resin and the steel which are the raw materials for its production. The increase in prices of these materials results into the hiked prices of the products. This is because if the rates of the raw materials increase then the general production costs will ultimately increase. As a result of this, the products will be charged high which will lead to law sale hence less profit. The fluctuations in the prices of the materials have affected the profitability of Polaris for a long time.
The growing part of the business also threatens Polaris. The sales are lucrative for other companies like the Harley-Davidson. Polaris feels the impact since it also sells the same products as those that are getting into the market such as motto bike, ATVs, snowmobiles and the utility vehicles. The sale of these accessories is not equal from each division that is in the market. Polaris, therefore, generates most of its money from the sales of the off-road vehicles. This has consequently resulted in Polaris selling the products of another kind than it does for the motorbikes. The reduced sales are an indication of reduced profit margins and hence likely to cripple the industry of Polaris.
For Polaris to continue to enjoy the excellent hold of the market and to keep producing as per the original plans and objectives there is need to set up a plan to help control the impacts and the causes of the effects discussed, there are several ways that can be employed to bring a solution to the situation. Here are some of the recommendations can that can help in solving the threats and fears of Polaris as it serves the market. Polaris can come up with new products that are not yet being served in the market to get hold of new customers. The innovation and fast moving to taking action into modifying and come up with a product that is missing in the market will create another market gap that is not yet exploited. This will ensure that Polaris will be the only seller of products of that kind.
Polaris can also manipulate the prices through the economies of scale. When the economies of scale are applied, the costs can be lowered below the existing market price. This will help attract more customers to the products sold by Polaris since they will be cheap and economical for the customers. In the same way, there could be adjustments made by using raw materials of low-cost rather than using the expensive ones. This will reduce the aggregate cost of production. The prices can also be lowered by developing the relationships with the suppliers. This will make it possible for Polaris to be supplied with the raw material even if it does not have the required amount but pay at a later date.
The other recommendations that will aid create a large customer base. If the there is a large customer base nationally and internationally, then Polaris will not have the impact of a bargain for the customers in the market but will have a large market and hence will not be affected by the activities of the other firms. There should also be a focus put on the service and not only on customer goods. The services offered will win the interest of the people, and hence by ensuring there are quality services provided to the customers, they will prefer Polaris for other companies. The idea is to stand out in offering services to potential customers in the market aiming at winning their interest and preference.
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