Introduction Acting as the Purchasing Manager of this organization I have chosen, Ducati Motor Holding S.p.A., Italy, there will be an analysis report of the three aspects of the purchasing management. Firstly, the supplier selection criteria and supplier evaluation system, which includes the purchasing goals, the needs of the organization as well as the purchasing cost analysis. Secondly, the usage of ICT (Information and Communication Technologies) for purchasing operations. Lastly, for the purchasing operations and management will be covered in this essay. Ducati first succeeded in manufacturing the fastest 250cc production bike in 1960 called the Mach 1, which was lightweight and a true sports bike design.
The company had to competes with a large number of firms. Also, substitutes such as private cars and public transportation were available to their potential customer. Based on the Five Forces Analysis, Harley-Davidson must maintain competitiveness, especially in terms of product quality, to protect its business from other firms. Threat of Subtitles: This identifies the effect of substitute product in Harley’s industry. There are many substitutes to Harley’s products such as cars, and public transportation, however the overall force of threat of subtitles are moderate as Harley’s customers are into riding chopper motorcycles and would not prefer to shift to other
• High price and the competitive market has caused Harley to lose market share continuously lately, especially in the European market. • Harley has its base in U.S but U.S has its own limitation in terms of growth. As more than 65% of the revenue is coming from the U.S market so it’s become more risky for • Harley to generate majority of its revenue
• Harley-Davidson made $13 billion market. • Evince quality of product. • Customization is offered to its customers by Harley-Davidson. Weakness of Harley-Davidson: • Harley-Davidson only produce heavy/luxury motorcycles. • As the prices are high it fails in attracting middle class • Credit rating is poor (BBB+) • Targeting particular category of customers.
3.1.4. Threats of Harley Davidson: 1. Product Substitution: The companies in heavyweight segment going global like Yamaha, Royal Enfield, Vector Motorcycles, Triumph Motorcycles, Indian motorcycles these substitutes with their low price offering can affect the overall business of
This is because Harley-Davidson is faced by a lack of market expansion resulting into fewer market opportunities. The major challenge Harley-Davidson’s business strategy is that a larger market in Europe is taken by BMW and an Asian replacement would imply that the company applies persistence and time investment so that they can operate successfully in the Asian market. They should also put up country based management teams that will assist the company in making wise cultural decisions. As mentioned earlier, there are government and legal threats and these can be reduced through more involvement with foreign governments through the US trade office. More involvement in the activities of the world trade
The motorcycle giant has a narrow product mix, preventing the business from reaching more market segments and age demographics. Another weakness exists from sales primarily originating in North America, and insignificant or nonexistent sales in developing countries. Furthermore, the company has a limited supply chain that hampers potential expansion in the global motorcycle market. The demand for Harley-Davidson products has the opportunity to create new business alliances to increase market reach and broaden the product
Harley consists of heavyweight highway motorcycles. In the other hand Honda, Japanese does their product with a wide range of motorcycles. This has allowed them to expand their markets and flourish the motorcycle market with thriving profits. Honda is famous for their affordability and durability. But the niche market segment of Harley Davidson is more concerned about the style and their personal culture of highway riding.
The destinations of exports from Honda comprises of North America, United States, Europe, Asia but the biggest export is to Asia. Also, Japan has a quiet big influence to the world. In accordant with the data that the writer took from World Integrated Trade Solution website, Vietnam is a country that imports more than export. Vietnam has more than 100 import partners of machinery and transport equipment. The top partner countries that Vietnam imports include China, Republic of Korea, Japan, and the United States.
The company is able to achieve strong market presence in almost hundred countries including Unites States, Canada, India, United Kingdom and Korea etc. in present time, BMW is able to position the company in premium segments with three of their world famous brands i.e. Rolls-Royce, BMW, Mini (www.bmw.co.uk, 2015). In the year 2012, BMW was announced by Forbes as being most reputable business of the world. The most classiest and stylish cars all around the globe that is known for its design and quality is BMW.