Project three

Executive Summary

November 13, 2020

Description of Problem

With the invention of steam engines and bicycles, 19th century scientist quickly realized that combining of these two technologies could substantially improve transport on public roads. In1885, when two German inventors, Gottlieb Daimler and Wilhelm Maybach, managed to create the first motorcycle with a gasoline internal combustion engine, a true breakthrough in motorcycle technology occurred. Today, this engine called "Daimler Reitwagen” is regarded as the first instance of the modern motorcycle we now know and use. Since its introduction, many other inventors and engineers have started to create their own engine-equipped bicycle models. This would be a great way to diversify and allow other businesses to purchase our motors for motorcycles.

The method of Qualitative data collection can be analyzed from two separate points of view: the questionnaire and the respondents. A respondent may not care about the classification of data they are inputting, but his information is important to the questionnaire as it helps to determine the method of analysis that will be used. Qualitative data is a type of data that describes information. It is very investigative and very open-ended. I will be conducting a list of questions to make sure that this would a great opportunity and to increase revenue. Some examples of questions would be

1. How much revenue can I expect?

2. How much are we charging for each motor?

3. How much can we expect to lose if the motor does not work out with the motorcycles?

Quantitative data is defined as the value of data in the form of counts or numbers where each data set has a unique numerical value associated it with it. Quantitative information is used to address questions like how many? , How often? , How much? This knowledge can be checked using statistical methods it also can be easily analyzed. The type of Quantitative data that I will target in my research would be a projection of data. The method of mapping data points generated by the data model into display points used by chart renderers is Data Projection. A translation between two coordinate systems leads to this mapping. A data space determines the coordinate system in which information is conveyed. This system of coordinated is defined by the axes of chart.

Description of the Current U.S. Automotive Industry

The automotive industry in the United States started in the 1890s and quickly grew into the largest in the world as a result of the size of the domestic market and the use of mass manufacturing. The United States however was overtaken in the 1980s by Japan as the largest manufacturer of vehicles, and subsequently by China in 2008. The U.S is currently second by volume among the world’s largest producers. American manufacturers manufacture around 8-10 million units annually. Notable exemptions were 5-7 million cars produced in 2009 (due to the crisis) , while production peaked at 13-15 million units during the 1970s and early 2000s. In 2020, global car sales expected to fall just under 62 million units, down from a high of nearly 80 million units in 2017. The most significant market divisions of the automobile industry include commercial vehicles and passenger cars.

Current Automotive Market Trends

Trends come and go. Last year in the United States, SUVs outsold sedans two to one , and experts expect that it will only grow. The Toyota Camry has been the United States best-selling passenger vehicle for nearly two decades. According to Car Sales Base, Toyota’s RAV4 sport utility took the passenger crown with nearly 450,000 sold in 2019, placing it in fourth place over all behind the pickups. Next at over 384,000 sales, were the Honda CR-V Nissans Rogue and Rogue Sport at 350,500 and the Chevy Equinox at 346,000. The Camry was the first sedan on the list.

Description of the New Industry

Most people are buying motorcycles not just because of the luxury but because its easy movement, and some people consider it a preferred mode of transport. Research shows that sales of the motorcycle are projected to reach $51.1 million by 2020 from $38.9 million in 2019. In addition, a compounded annual growth of 48.4 percent by 2027 is projected to rise in the global motorcycle industry. The external factors influencing motorcycle demand growth are that customers prefer private transport facilities that are not constrained by factors such as traffic.

This industry has succeeded primarily due to the advancement of technology that has enabled customers to integrate elements such as on-board sensors that allow motorcycle owners to have information such as travel information, riding mode, and speed that has attracted motorcycles users. The rise in long – distance bike riding is another market factor that has contributed to the growth in the industry.

According to a recent study by Grand View Research Inc. the U.S motorcycle market size is projected to hit USD 10.88 billion by 2025, and growing quantities of disposable income are expected to drive the market. A surplus amount of revenue is used by Americans to purchase motorcycles, contributing to an increase in car purchases and registration. Motorcycle registrations in the U.S have increased over the past 10 years, according to the Bureau of Transportation Statistics from 3,826,373 in 1997 to 6,678,958 in 2006 suggesting an overall rise of 75 percent. Over the same era, new street- legal motorcycles sales rise more dramatically from 260,000 in 1997 to 892,000 in 2006.

Current Market Trends in the New Industry

The current market trend has a major issue such as carbon emission. Carbon emission is taken seriously into account in global environment awareness campaigns; new entrants of electric powered scooters are launched for that. Electric scooters operate on batteries and can be fully charged for a good distance. Motorcycles are much heavier and require extreme power to drive motors that help cover long distances. Together with the aid of NGOs and the government, the motorcycle industry implements improvements that are additional beneficial factor. For many manufacturers, cutting down the weight of vehicles is a top priority as it helps to achieve productive running and enables consumers to spend easily and economically on motorcycles. In terms of the primary mode of transport, motorcycles are gaining popularity around the world. In retaining customer loyalty, already proven brands strategize and compete vigorously.

Appendix A

Explanation from Porter’s Five Forces Analysis of the New Industry

Porter’s Five Forces Model is a methodology or system that you can use to assess how competitive an industry is and how lucrative that industry is for someone who wants to join and make high profits in that industry. As competition leads to high levels of productivity and tightening, highly competitive industries appear to result in lower profit margins. If a company wants to see a high profitability, they will benefit from either joining a less competitive market or knowing an already competitive sector well enough to disrupt it. Competitive competitions are strong, especially because of the involvement of big brands to promote their brands with financial muscle. However it is easy to get into the market and expand because of the high prices of the huge brands. As motorcycles are currently the preferred mode of transport over vehicles and trains in many parts of the world, the threat of replacement is poor.

Appendix B

Summary of Findings from Porter’s Five Forces Analysis Comparing Both Industries

It is important for the sake of the business to know who your competitor is and how their goods, services, and marketing strategies impact you and your business. Competition has a direct impact on success, whether the company is a Fortune 500 corporation or small local business. Using Porter’s Five Forces model is one way to evaluate competition and consider your role in the industry. Understanding the competitive forces and their underlying causes exposes the origins of the present profitability of an industry while offering a structure to predict and affect competition. The motorcycle vs. automobile has always been a debate. Do you prefer the spaciousness of a vehicle or a motorcycles fresh air? Other concerns include fuel, efficiency, resale value, parking, and traffic jams. With so many things to consider many people choose a vehicle by default, but motorcycles can also be rewarding. With motorcycles you can beat traffic, find easy parking, uses less fuel, and it’s more fun. Some cons are that it is more dangerous than an automobile, limited space, and more susceptible to weather.

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