The Sompany's Background
Polaris Industries is an American company that was started in the year 1954. It is located in the Medina area of Minnesota. It is a motorsport product producing company. the company has a product line of products such as snowmobiles, the ATV's and side by side. The major competitors of these company are companies like Honda, Arctic Cat, and others like Harley Davidson, Yamaha, and Ski-Doo (Chopra et al., 2017). The company has a market share of 20% equivalent of two billion dollars. The industry has been serving warehouse distribution, heavy-duty service, warehouses distribution where they deliver systems for industry use.Polaris Industry and Products
The main products produced and sold by Polaris Industries Inc. were Ranger, ATVs, ORV and the RZR side-by-side. The side-by-side is designed to carry six persons plus some cargo. The ATVs are vehicles with four wheels and are used mostly on rough and swampy roads. The ORVs have a number of uses such as fishing, for trails, for hunting, and for military purposes.
Polaris Industries Clients
Most consumers of the Polaris industries are from North America. It is estimated that around 85% person of the Polaris Industries come from North America. Beside this concentration of clients in this region, the company is also spreading its services outside its countries borders and is venturing into the international markets as the demand for their products increases (Chopra et al., 2017). The distribution network of the company served the local markets, the US markets, an estimate of 1500 distributors serving while about 1000 distributors serving outside the country. It has been increasing its service delivery to clients by growing and introducing new products. The company dominated the market in the sale of off-road vehicles. Motorsport has been one of the greatest clients to the company. Polaris served Motorsport with the products like the snowmobile, Side-by-side off-road vehicle, and ATV. Motorsport generated a lot of revenue for the company around the year 1998. Western European was a major client for the ATVs.
Polaris Industries Growth and The Competitors
By the year 2010, the Polaris ORV dominance in the market was intensifying. The sale of ORV generated revenue estimated at 69% of all the sales made by the industry. The company's revenue was in an increasing trend with the increase in sales and new clients. The company's attributed its major success to the creation of brands that had a huge demand in the market that was potentially growing. The company applied a strategy of investing much in marketing to ensure that information about their brands reached their clients (Arora, 2018). It has been approximated 10% increase in the 2013 sales in comparison to what was sold in the year 2012. In the year 2013, the industry sold 136,000 snowmobiles globally.
The major competitors for the Ranger and RZR side-by-side are the Yamaha, the Arctic Cat, and the Kawasaki.
Challenges Facing the Polaris Industries Inc.
One of the challenges is the stiff competition they are facing from other companies. The companies are coming up with new products to counteract their products. A product like Ranger is given competition by Yamaha from other companies.
Economic crisis. The company must experience a decline in sales. The economic crisis hitting the US will lead to little spending by the potential clients. The weak economic situation also affects the income of the consumer. This economic slowdown affected the company to a point of them relocating to another country where they could have found a cost-benefit and huge return.
Businesses are started with aim of making profits. Generating revenue is the main goal for any business. However, for these to be achieved, certain strategies are very important. The business encounter challenges and they run to surpass these challenges (Arora, 2018). In the modern world, it is hard to find a business operating as a monopoly, hence, most businesses face stiff competition. Besides competition, there are other challenges of economic crises and inflation.
Arora, S. (2018). Polaris India International: moving boundaries. Emerald Emerging Markets Case Studies, 8(4), 1-28. (Arora, 2018)
Chopra, S., Andreas, I., Gee, S., Kolasi, I., Lhoste, S., & Neuwirth, B. (2017). Polaris Industries Inc. Kellogg School of Management Cases, 1-9.
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