Research Paper on Revolutionizing Lawnmower Industry: Advanced Product Designs

Introduction

The introduction of more advanced technology has led to increased product design. The product designs are aimed at meeting constantly changing consumer demand across the globe. One of the industries shaped by this revolution is the lawnmower industry. Lawnmower industries comprise groups of companies that offer a wide variety of products and services. The products include the manufacture of Lawnmower blade, power lawnmower, lawnmower engine, grass cutting lawn mower, trimers, and other leveling machines (Rehn & Lindahl, 2012). The services include - grass cutting, tree cutting, gardening, irrigation, and other landscaping services. In sum, the industry offers landscaping and gardening services.

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The industry offers its professional services to such clients, including homes, hotels, restaurants, and sports ground or fields. Moreover, they offer their client or customers additional services like offering advice on how to maintain their gardens, homes, and hotels. Notably, with the increased global demand of lawnmowers, the industry has been pushed to optimize its products and services like the manufacture of robotic lawnmower which perform various simple and complex task (Rehn & Lindahl, 2012). Therefore, it aims to analyze the industrial analysis of Lawnmower industries shifting from factories to retailers rather than the final consumer.

Industrial Specific Knowledge

North American Industry Classification system (NAICS) is a standard code used by The Statistic Agencies of the Federal state for business classification. The classification is significant in determining economic position in the United States economy. Therefore, the appropriate NAIC code for the Lawnmower industries is 333112 (Rehn & Lindahl, 2012). This code is specifically allocated for companies in manufacturing-related lawnmowers, tractors, shredders, and yard vacuum. Therefore, the code is most appropriate for the lawnmowers industry. Trade association assists the organization in publishing-related organization information. Therefore, they mutually assist the industries and organizations in economic development. Moreover, trade association provides a central information center for a specific type of industry.

Lawnmower industry is categorized under trade association of consumer electronics, which publish and provide essential information, including the market forces and changing consumer preference (Rehn & Lindahl, 2012). It is worth noting that many historical events have shaped the growth and development of the industry. The first-ever machine that was used to cut grass to a leveled length was the scythe. However, the scythe was made of a wooden handle attached to a blade which made it undesirable to consumers. Until the late 19th-century, the scythe was the only desirable tool for trimming grass (Rehn & Lindahl, 2012). However, more inventions followed as it was cumbersome to use a scythe. The invention of the first-ever mower come at around 1830, invented by Edwin Budding, an engineer from England. The mower had large rollers and easier to use as opposed to scythe. since then, the budding invention has led series of inventions in the industry, including light push mower, which was meant to address the inconvenience of the scythe and the first mower (Rehn & Lindahl, 2012). In the contemporary globe today, more advance innovations have shaped the future of lawnmower industry with the invention of electric and robotic lawnmowers (Rehn & Lindahl, 2012). The new inventions have been used in commercial sectors to trim and cut grass to a more desirable level as opposed to earlier inventions.

According to the global report of 2017, the lawn market dollar size or the market size stood at USD 27 billion, and the value is expected to grow up in the next few years (Wong et al., 2019). The industry has undergone multiple transformations in technology and product development and design. This has been driven by the development and design of remote- and remote-controlled GPS equipped products, which has made gardening more efficient and effective (Rehn & Lindahl, 2012). The new inventions have led to increased consumer interest and thus translating to increase demand and thus dictating the shipment value. Moreover, the industry has been characterized by the massive value of export for the past half a decade. According to the latest 2017 report, the value of export shipment for the last five years stands at USD 1988 billion. This figure has been boosted by increased international market share of about 53.1% (Wong et al., 2019).

On the other hand, the industry has been capable of importing raw materials from other countries to manufacture its products. Besides, for improved services and quality of products, the industry has been able to import skilled professionals that have created and invented new lawnmowers. Hence the break-even of the value of import and export have stood at about USD 1988 billion (Deneen & Gross, 2006). Significantly, lawnmower market has an annual growth estimation that stands at USD 47.6 billion, which translates to an overall group rate of 5.5%. According to the published annual report of 2017 by the Grand View Research (Wong et al., 2019). The industry is on the course of conquering the global market due to increased demand. This has been accelerated due to the rising global population and the need for an efficient way to lawn. Notably, Europe accounted for the major part of 5.4 % by dominating a percentage of 5% (Wong et al., 2019). The global markets of a lawnmower in 2018 were valued at $9745.0 million, and estimation or a projection set the figure at $14.595 by 2026, representing a growth percentage of 5.2% (Wong et al., 2019).

Major Competitors

Key market players in the industry include Honda motors, Andreas Stihl, Deere & Company, Hitachi, and Textron. The companies have implemented significant strategies, including product design and development to strengthen their growth (Deneen & Gross, 2006). Therefore, as a result of these benefits of economies of scale, the firm's recent revenues as follows, which are according to the financial year 2017/2018. Honda Motors enjoys a sales revenue of $ 115.8 billion, Andreas Stihl has got a revenue of $ 113.8 billion, while Deere & Company enjoys a revenue of $ 12.8 billion. Hitachi Inc. reported revenue of $ 113 billion, while Textron enjoyed a massive revenue of $ 113.44 (Wong et al., 2019). As evident from the numbers, Honda Motors is the industry leader. Moreover, the corporation has acted as a chief player in the industry since it had acquired the most market share in Europe and Asia for the Lawns. The corporation has expanded its operations and has constantly adapted to changing the retailer's preference for the lawnmowers. This has made the corporation to command a significant market share of about 51% within the industry. Moreover, the corporation has adopted more recent technologies and is driven by intensive market research in developing and designing their products.

Despite Honda Motors being the market controller, there are threats of the new market entrant, which could lower the corporation market share globally. Notably, all firms in the industry are affected by this threat, which could significantly reduce their market dominance. Moreover, such competition could arise in the external environment, including manufacturing and designing alternative products to the Lawnmowers (Wong et al., 2019). Notably, such competitions are potential and since new industries are capable of manufacturing new alternative lawnmowers capable of offering good customer and retailer experience. Competition is healthy since it would increase innovation and thus increased economic development. In addition, the adoption of artificial turf especially in sports and designed residential lawns has posed a great challenge and competition in the market. This is because, turfs to not need any irrigation or watering which will save both time and money and thus less or no trimming will be required (Wong et al., 2019).

Supply Chain

The primary raw material in the manufacture of lawnmowers included plastic, rubber, and still. Thus, Lawnmower industries depend on steel, rubber, and plastic suppliers (Wong et al., 2019). Moreover, handlebar, blades, and engine suppliers supplier component parts to the industry to assemble and complete the assembly of their products. However, the finished good is manufactured after assembling all the component part and supplied and manufactured by the industry; thus, the industry completes the final finished good (Wong et al., 2019). The industry engages such intermediaries, including agents and brokers, retailers, and functional and distributor wholesalers, to distribute and sell their products. Moreover, the industry also depends on individual private distributors for local distributions and sale. Notably, technology-based firms can affect the supply chain through the introduction of suitable platforms for marketing. Steel corporation supplies important component to lawnmowers and their ability to supply depend upon the demand of the lawnmower's firms. Such steel firms include China Baowu, Ansteel, and JFE Holding (Wong et al., 2019).

Customers

The industry has such a target market and customers, including restaurants and hotels, gardeners and commercial sectors, specialty stores, supermarkets, and football clubs. Each target market has its buying process or channel. Supermarket buys on credit and makes payments after a period of 30 to 60 days (Wong et al., 2019). Specialty store buys on-demand and makes an order which is pegged on a cash basis. Football clubs buy on a cash basis while gardeners may offer down payment and make other payments later. In addition, for local buyers, the shipment process is by large trucks, while for export, the shipment takes some time through containers or train. Gardeners use lawnmowers to trim their garden and even extended to other homes to offer paid services. Football clubs use the product trim the playing ground while supermarket resells the products to other third parties at a profit. The customers can not produce the product themselves due to the high initial cost of capital required in the industry.

Conclusion

In conclusion, the lawnmower industry is a dominant industry across the globe, and the industry has no intention of being liquidated. Therefore, the firms in the industry are continuing to operate with an assumption of a foreseeable future. Driven by technological advancement, the future of the lawnmower industry will revolutionize the globe since more and intensive innovations that are on course. For instance. Owing to the smart speed of technology, the industry is striving to increase their productivity to a more desirable degree that can be embraced by most of its customers across the globe.

Reference

Deneen, M. A., & Gross, A. C. (2006). The U.S. market for power lawn and garden equipment. Business Economics, 41(2), 62-67.

Rehn, A., & Lindahl, M. (2012). Muddling through innovation-On incremental failure in developing an engine. Journal of Business Research, 65(6), 807-813.

Wong, J., Chandler, D., & Briney, D. (2019). U.S. Patent Application No. 29/624,332.