Analysis of Dirt Bikes Competitive Forces

The founders of Dirt Bikes exploited the opportunity that existed where dirt bikes were in high demand, but there was no supply for the commodity. The founders, who were cycling enthusiasts themselves and had some engineering backgrounds, designed their own bikes using readily available parts and used engines of Rotax Motors and Honda. They then took part in a race using their own designed bikes which aroused massive interest. From then on Dirt Bikes became a global brand recognized by biking enthusiasts worldwide.

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The company creates its revenues through the sale of its own manufactured spare parts to its clients. As it has a vast customer base, the sale of spare parts constitutes a substantial proportion of its total revenue base. In fact, revenues generated from the sale of spare parts constitute 15 percent of the total revenue for the whole company. Apart from the sale of spare parts, the company also creates service to its customers through the manufacture and sale of bikes. It produces different sets of bikes designed for specific races and terrains. The Enduro brand is specifically designed for rough terrains while the Moto brands are designed for motocross racing.

These bikes create value to the customers by providing a riding experience that best meets their needs. With the specially designed bikes that use spare parts from the best manufacturers around the globe, these bikes offer the best quality in the market, enabling their customers to have the best riding experience. The company faces stiff competition from other players in the industry including Honda and Husqvarna. Hondas bikes have their process ranging between $6, 449 - $71,999. They have electrical starting mechanism and wide ratio gearing. The Husqvarna model prices range between $6,298 and $7,989. Its competitive features include a light frame and unique suspension system. Dirt Bike models have their prices ranging between $3,250 and $8,990. Smaller models of the Dirt Bike brand have lower prices compared to the similar sizes of their competitors.

With increased competition in the industry, Dirt Bikes has various strategies to adopt to stay ahead of the pack. It can enhance the quality of its products by sourcing the best spare parts from the best players in the industry. Other components are obtained locally to ensure that the products delivered to customers are of the best quality. To attain a competitive price for its products the company can outsource its production such that the assembly of some of its parts can be done in other countries that charge lower labor costs than those charged in the United States. By ensuring that only licensed dealers can sell their spare parts, the company aims to achieve quality for its products through standardized spare parts. This way, the company avoids the possibility of counterfeit duplication of its spare parts from unlicensed unscrupulous dealers that could jeopardize the quality of its products.

Advertising its products both in local and international media can help in making the companys products known on a global scale. This could help the firm penetrate international markets easily and establish its presence in these territories. The company could also use a low pricing strategy in order to penetrate foreign markets dominated by international brands. The adoption of expert support system within the organization could better help the organization in achieving its objectives. These systems ensure that the organizations automated system run efficiently in detecting system malfunctions designing superior systems of the firms products.