Zero, Brammo and the Electric Motorcycle Industry - Case Study Example

Student’s Name) (Professor’s Name) (Class Name) (Due Date) Analyzing The Zero Motorcycles Company’s Case Study Main Competitive Advantage of Zero Motorcycle Company: The first competitive advantage that Zero motorcycles possesses is both the introduction and application of the customer- based product development approach: this fact compliments with the Company’s major goal of providing the customers with efficient, environmental friendly and products of high quality. Having put the consumer’s interest at the forefront it is safe to indicate that the Company postulates its desire of meeting the specific customized needs. It is further observed that the Company was not in the business of launching a product that would not record massive sales and the only way to conduct this performance was by way of establishing and maintaining a stronger customer-manufacturer trust that was worthwhile in that matter. This indeed catapulted the product line expansion approach which demanded that a product could only be offered for sale after it had passed the customer’s expectations altogether. Having known its entire market niche, it is safe to postulate that the management could use it to include both the potential customers as well as those that already exist. The market niche is developed through the establishment of figures for sold units. The fact that the Company’s directly deploys the customers in its operational activities beats other strategies that it currently has in place in that with the customer’s getting to decide on efficiency, quality and performance of the product definitely implies that they are willing and able to purchase the tested units altogether. This strategy is far the best strategy which increases to customer’s curiosity that translates to voluminous sales. The second competitive advantage is the continual diversification of the motorcycle models altogether. The Company’s first introduced the Zero X model which was basically later improved on to become Zero MX. The numerous models observed throughout the case study clearly indicates that Zero Motorcycles was far much indeed interested with producing units that had a value for the money paid to purchase them altogether. This aspect part of the strategy could be operationalized by insisting on more of Research and Development activities that will enhance the current performance rate of those models being produced. This competitive strategy is realistic and workable in the sense that it can be perceived to be incorporated within the diversified manufacturing operations in the Company’s manufacturing set-up altogether. The third competitive advantage is the fact that Zero motorcycle partnered with Prosper.Com to distribute its products efficiently. The partnership increased sales volume in the sense that willing customers were now able to purchase the units at much affordable prices as well at a very convenient payment methodology altogether. This competitive strategy also increased the market niche for the products throughout the United States. The fourth competitive advantage lies with its effort to include a network of its product representatives who provided first hand support for the units purchased. This associate to the Company were of great value as they embarked on sharing their respective entrepreneurial visions with that of the Company as a whole. They not only increased the sales capability of the firm but also supported needed by the customers especially when it came to the different models of the units produced altogether. The fact that the Company selects its representatives on the basis of their entrepreneurial interests provides a fundamental platform for which effective decisions can be made by the management at hand. The information that can be gathered at different representation points can be juxtaposed by the research and development department to formulate even more effective strategies. At this point in time, It will be safe to dwell on increasing the partnership presence with other e-commerce points thus increasing the market niche as well as sales volume altogether. It will also be wise to increase the resource allocation needed for Research and Developments that are customer based so that the Company can as a result comprehend the specific requirements that customers desire in a motorcycle. When clear and well thought-out measures are put into place then these recommendations are realizable and workable in that matter. Issues and Opportunities Facing Zero Motor Cycle Company: The first issue facing the Zero Motorcycles is the issue of production capacity. It is stated that the Company had its product models gain a wide range of acceptance throughout America, Europe and Australia thus the increase in demand. With its production capacity ranging at barely a minimum figure postulates the fact that it will not be able to meet its demand in the near future. It is therefore wise for the Company to formulate needful measures which will act to catalyze the production capabilities altogether. Since this is basically an internal issue the management of the Company can at its best direct resources to expand on its already established operations. This form of issue requires that the Company make long term decisions that will last to see the efficient and optimal level is reached. This issue can also be taken care of by the Company when it decides to instigate the need to deploy more of the human resource elements altogether. It is positive to conform to the Company’s desire to increase its workforce to 350 people by 2015. The second issue facing the Company is associated with financial resources. This is an internal issue that could be addressed and resolved by the management so that new and effective ways of sourcing for the extra working capital required will be evident altogether. The management may embark on making relevant decisions whose implications will act to enhance the financial position of the Company this is especially indicated by the fact that the Company has embarked on sourcing for funds for its expansion activities. This important information that will be needed for decision making process by the management will involve the production capacity of the firm at large. It should be noted that the capability of the firm to instigate expansive growth strategies is entirely dependent on the readily available financial resources. It is therefore safe to indicate that the decisions that are meant to steer production level should be coordinated or rather referenced to those involving funding allocation and attribution in that matter. This strategy is workable in the sense that when the Company leaves these decisions making processes to the capable hands of qualified accountants and auditors in general. The third positive issue that Zero motorcycle possesses at its disposal is the fact that it was able to incorporate its strategy to conform to the international market. For instance its global strategy to meet the international recognition as the best electric motorcycle industry across the globe was met with high demands for their respective products. This opportunity has been made possible by the fact that it has been able, over a substantial period of time to come up with different models which are customized to meet the needs of the different marketing niches at large. The global strategy was meant to renovate positively to the motor cycling experience that was to offer the different marketing niches, highly innovative which in return offered highly performance motorcycles as well as provide the customers with a product which will possess the value for their money altogether. It is safe to indicate that with this strategy the Company is placed at a better position for which it can use to expand its market. According to the information concerning growth that is provided, the Company can take to adjust this global strategy to meet its desires of increasing sales altogether especially in markets situated in Middle East and Africa as a whole. The fourth issue involves competition. The Company has been faced with external forms of competition even though the competition comes indirectly. The major competitor in this market segment is Brammo Inc. a Company that specializes in the designing and manufacture of electric motor vehicles altogether. This form of competition has however been somehow contained within the operations of the Zero Motorcycles especially when it chose to diversify its product to meet different consumer specifications. It is also safe to indicate that the decision by the Company to focus on investing resources into product positioning, product development and product line came with the effect of cutting out on product competition altogether. The management will have an upper hand if they embark on developing strategies that are attributed to enhancing the customer’s trust thus loyalty hence beating out the competition that may exists within its production processes altogether. It is also safe for the Company to make decisions that will depict investments aimed at diversifying the products line altogether. This strategy is workable especially when the Company chooses to designate a workable Research and Development department whose mandate is to facilitate smooth operational processes by way of providing relevant and reliable forms of information that will in turn be used to effectively make reliable and reasonable decisions by the management at hand. On another note, the Company has an upper hand on its production processes especially because its products are environmental friendly thus costs are cut substantively. The Government subsidies and tax cuts that the Company received from the State of Oregon indicates that the Company vision is in accordance with the stipulations laid out by the environmental Acts aimed at protecting it. Key Strategic Initiatives: The first key initiative involves the expansion of the production activities of the firm. This is basically because the world is slowly embracing technology especially that which is environmental friendly in nature. This technically means that in the near future demand will increase thus increased sales volume of the Company. In this case the Company is advised to embark on missions to source for equity through the most favorable channels that include debt financing among others. The Company can also meet this demand by selling part of its patents to potential entrepreneur who will be involved in multiplying the production capacity as a whole. The second key initiative involves strong diversification processes. In this case the Company is mandated to include electric motor vehicle production to counter the marketing niche that is already possessed by other electric motor industries altogether. This can be achieved by participating strongly in strong marketing campaigns aimed at increasing awareness of the products that the Company manufactures. It is also safe to indicate that the Company will enjoy the purchases from the already established customer base that possess trust in the Company’s product. The third key initiative involves investing on its production processes altogether. This will be achieved by way of establishing manufacturing plants in places which they did not exist before and by so doing increase on its current market control that translates to huge sales volume. The fourth key initiative that the Company could embark on involves investing on its human resource aspect so that they can start earning experience early enough which will be of benefit in the near future especially when the marketing demand increases. The management can achieve this by way of recruiting competent staff that will be trained for the future survival of the Company as a whole. Works Cited Zhu, Fei. Zero, Brammo, and the Electric Motorcycle Industry. Richard Ivey School of Business, the University of Western Ontario, 2008. Read More