Competitive Advantage of Zero Motorcycle Zero Motorcycle Essay
- Length: 6 pages
- Sources: 3
- Subject: Transportation
- Type: Essay
- Paper: #90912008
Excerpt from Essay :
Competitive Advantage of Zero Motorcycle
Zero Motorcycle has been the world's largest producer of high performance electric motor cycle. Zero motorcycle has competitive advantage of being highly innovative, customer friendly and good distribution channel. Moreover, some of the models like Zero DS could be used from street to mountains and has more power. Its competitor Brammo Inc. has not innovation as the Zero X has and more they are more focused on racing bikes and moreover they have not distribution channel as the Zero motor bike has.
Zero X should continue to focus on the innovation it has got for its customers and moreover, it is also customer friendly. Its growth entirely depends on its innovation, low price and excellent distribution channel. However, Zero distribution channel lacks the coverage of Asia properly as Asia is the largest continent by population so it should also focus on Asia.
Zero motorcycle needs more innovation in the field of bit lighter motorcycle that can be used in the cities with less time to charge its battery. This model could also be used for persons who want to use it for their routine work rather than going on hilly areas and moreover Zero motorcycle should also focus on the special type types, for example who are more taller who are handicapped etc.
Distribution channel can more be increased by doing franchises of Zero motorcycles in some countries where direct dealing is not possible.
Marketing of the Zero motorcycles can also be improved further by giving more awareness to customers by following media campaign more vigorously. Specially, in third world countries where people do not know much about Zero motorcycles.
Zero motorcycle can also raise more funds by raising its shares on the stock market. In this way it can raise more funds by inviting shareholders and can also enjoy more relaxation in government regulations.
Zero motorcycles should also focus on general customers as well as specific customers of other competitors and increase its product variety.
Customers primarily focus their utility but mission and strategy of the Zero motorcycles focus on merely on innovation and it looks like that it does not take feedback from its customers,. However, feedback from the customer should be given extreme importance and it should be properly channelized.
Moreover, the mission statement of Zero motorcycles contains the international growth strategy but it has enhanced its growth in USA and Europe and not in the whole world so it should also focus on the whole world.
Another thing, which Zero motorcycle is to also introduce motorbikes of highs speed so the customers who need to get bikes of High speed can also get their choice.
Zero motor bikes have also to reduce the charging time of its battery because long time charging of its battery can de motivates the customers.
Possible development by Zero motorcycle company
Zero can develop new products by primarily focus on traditional motorcycles and specify the products rather than mixing different types of motorcycle into one motorcycle.
It can improve its distribution channel through call centre help and not following the specific distribution agents because it is sometimes difficult to find special distributive agents. Alternatively, it can provide different types of booklet
It can introduce specific types of bikes like bike for old people, women etc. In this way they can address the specific niche in the market.
It should introduce its survey process and register the complaints and their wants so that product can be modified according to the demand of the customer.
It should also do survey of the strengths of its competitor and potential threats that are lying and potential opportunities that are under the cover.
It should also introduce talent hunt programs for finding the persons with best innovative capability. Innovation should be encouraged within the organization.
It should have proper command and control system for the manufacturing area so that no secret formula can be stolen.
It should also focus on introducing product variation as one-dimensional approach can be dangerous and can easily be scraped off the market.
There are opportunities for Zero motorcycles to address the Asian markets, as there is large scope to enhance its sales. Furthermore, there are opportunities for the Zero motorcycles to enter in the arena of manufacturing of heavy bikes.
Moreover, there are further opportunities for Zero motorcycles to diversify their product range by manufacturing other machinery products like motor, television etc.
There are further opportunities to improve its distribution channel by taking the cover of mass media.
There are opportunities to polish its innovative capability and attract more and more customers.
There are opportunities to merge with small companies in this field and enjoy more resources.
There are opportunities to develop its resources in a better way as arrange more funds and expand its business.
Influence Zero motorcycles can make on the environment
The first and foremost influence it can make is the decrease in prices of motorbikes as Zero motorcycles are available in the market with the low price. So it has given the customer choice of quality product with low price.
Second influence it is making on the environment is the availability of environment friendly motorcycle with low emissions. Second, it has also given the federal tax credit due to being an environment friendly.
Another influence it is making on the environment is the introducing the culture of innovation in the market as it introduces variety of bikes with new features.
Moreover, it also provides the employees the innovative skills and providing employment opportunities and increasing the GDP.
It is also contributing to the environment by making the environment of competition and forcing other organizations to improve its quality.
There are some uncontrollable aspects as well in the market like more and more firms in the market and Zero motorcycles faces tough competition. Some of other firms are also reducing the price like Brammo incorporation, which is posing tough competition for the Zero motorcycles.
There are some other controllable aspects like tax rates, tough regulations of different countries etc.
There are also some uncontrollable aspects like changes in the customer choices like in 2008 Zero x was super hit but after that products are not as hit as Zero x was.
There are some uncontrollable aspects like offers made by the competitors and intense competition in the environment
Initiatives should be taken and resourced
There are areas where initiatives should be taken like widening the distribution channel of Zero motorcycles and provided with more manpower and it should be given more funds.
Second area where initiative should be taken and enforced is the more innovation in some areas like introducing better testing procedures and customers should be introduced and specifications needed from the customers than introducing specifications from it. Customer experience should be given weight age.
Initiatives should also be taken to widen its area of network means more markets should be covered, so that the international growth can be achieved.
Internal issues in which decisions can be implemented
Internal issues like better allocation of funds to more constructive purpose should be implemented and its manufacturing facility should be made available to multiple countries.
Internal issues like improving the innovative capacity of the employees should also be enhanced.
There are also other internal issues like those that employees' satisfaction should be achieved. It can be done when the employees self-actualization are achieved.
There also other internal issues which needs to be addressed that are introducing more technology in the organization so that employees can innovate by using more technology.
There should be environment for the constructive group discussion, which can favor innovative behavior in the organization so that employees can contribute towards more and more innovation.
Strategic initiatives that needs to be taken
Over the next five years, it needs to make multiple decisions that should be implemented
First of all it to follow its mission of becoming the international growth agency by enhancing its production activities throughout the world so that it can increase its sales and can increase its profit.
In following that purpose, it should also improve its distribution channel.
Both of these decisions are relevant to become an international growth agency.
Secondly, it should focus on more innovation towards lightweight products as Zero X got popularity because of its lightweight and good power capacity. As other models of Zero X also focus on giving better features with easy to use and with more power by improving its battery and tires. As the major mission of the Zero X is to focus more on innovative ability, so it should continue work with that.
It can be implemented by inviting new ideas from the customers and by hiring new staff, which focuses more on innovation.
It is necessary to enhance the sales and following the mission of innovation.
It will keep Zero's customers intact, as they prefer to but the products of Zero motorcycles because of its innovative capability and moreover, it would also increase their customer.