Hamlet And Laertes - A Revenge Tragedy - 1248 Words

Hamlet and Laertes – A Revenge Tragedy Everyone’s personality can be changed through encountering different situations. In Hamlet, playwright William Shakespeare presents two characters, Hamlet and Laertes, who love their fathers, King Hamlet and Polonius respectively. Once their fathers are murdered, Hamlet and Laertes become mentally insane committed acts of reprisal. In particular, Hamlet wants to kill Claudius and Laertes wants to kill Hamlet. While Hamlet and Laertes share similar experiences when avenging their fathers’ death, they seek vengeance in a disparate manner. The reason they wanted to revenge their father, the way they seek revenge, and the flaws they developed when revenging their father are dissimilar. Hamlet and Laertes both lose their father in a similar manner, but the purpose for their revenge is different. Hamlet wants revenge because he loves his father. After King Hamlet dies, Hamlet is extremely depressed and says he would commit suicide if â€Å"Everlasting had not fixedHis canon gainst self-slaughter! †¦Ã¢â‚¬  (1.2.131-132). For Hamlet to be so devastated that he would take his own life, shows that Hamlet clearly loves his father. When he meets the ghost that looks like King Hamlet, Hamlet learns that his dad is actually murdered by Claudius. As a result, Hamlet promises to seek revenge by saying, †thoughts of love,/ May sweep to my revenge†¦Ã¢â‚¬  (1.5.30-31), explicitly conveying that he is taking revenge for the love of his father. On the other hand,Show MoreRelatedHamlet : A Classic Revenge Tragedy1103 Words   |  5 PagesHamlet is not like any tragedy. Hamlet is a classic revenge tragedy. All the revenge tragedies were popular in England during the late 16th and early 17th. A Shakespearean tragedy is built upon a central conflict which runs through from the beginning to the end of the tragedy until the conflict is finally resolved. The play is built upon the long, tragic conflict between Hamlet and Claudius and the conflict is bui lt upon the figure of revenge. The Driving points that shapes the plot of play areRead MoreHamlet Is Not Like Any Tragedy1142 Words   |  5 PagesProject: Shakespeare Essay Hamlet is not like any tragedy. Hamlet is a classic revenge tragedy. All the revenge tragedies were popular in England during the late 16th and early 17th. A Shakespearean tragedy is built upon a central conflict which runs through from the beginning to the end of the tragedy until the conflict is finally resolved. The play is built upon the long, tragic conflict between Hamlet and Claudius and the conflict is built upon the figure of revenge. The Driving points that shapesRead MoreThe Characters Of Foils In William Shakespeares Hamlet860 Words   |  4 Pages Foils In Hamlet   Ã‚     Ã‚  Ã‚  Ã‚  In fiction, a foil is a character whom contrasts with another character in the story, typically the protagonist. The foil is able to highlight certain aspects of their opposing character. A foil can differ dramatically or be extremely similar but tends to have key qualities that distinguish the two apart from each other. When an author uses a foil in literature they are emphasizing not only strengths and weaknesses the main character poses, but also understanding the obviousRead MoreThe Role Of Revenge Tragedy In Hamlet1020 Words   |  5 Pageswhole world blind is a common saying for revenge. Like Shakespeare he based most of his tragedies based on: betrayal, death, lies, and revenge, and they can be view throughout the whole play Hamlet. In the tragedy Hamlet, Shakespeare utilizes Hamlet’s character as a major role in the development of a revenge tragedy by his loss of morality, individuality, and madness throughout the play, further clarifying that indeed H amlet is a revenge tragedy. Although Hamlet is not the only Shakespearean play thatRead MoreRevenge Is An Act Of Hamlet By William Shakespeare1066 Words   |  5 PagesRevenge Does Not Prevail Revenge is an act that is taken when others believe that there has been a wrongdoing to someone or something they have a relationship with. Countless people seek revenge everyday throughout the world, but Confucius once said that â€Å"before you embark on a journey of renege, dig two graves.† This quote relates to the plot of a well-known play by Shakespeare, Hamlet. This play revolves around a monarchy in Denmark in the early 17th century where there is much chaos. In the playRead MoreHamlet: A Quest for Revenge Essay1697 Words   |  7 PagesMany scholars classify William Shakespeares The Tragedy of Hamlet, Prince of Denmark as a revenge tragedy, a genre popular during the Elizabethan era (Gainor 41). Shakespeares tragedy focuses on three sons–Hamlet, Laertes, and Fortinbras–seeking retribution for the unfortunate death of their fathers– King Hamlet, Polonius, and King Fortinbras respectively. In the play, the father-son relationship is the primary mot ivator for each sons revenge. Because Elizabethan society places a strong emphasisRead MoreDefine Revenge in Hamlet Essays1219 Words   |  5 Pages Revenge is one’s desire to retaliate and get even. Human instincts turn to revenge when loved ones are hurt. But, these misdeeds of taking upon revenge may lead to serious consequences. In William Shakespeare’s tragedy â€Å"Hamlet,† Fortinbras, Hamlet, and Laertes’s each show how their desire for revenge unavoidably leads to tragedy. The loss of their loved ones caused these characters in Hamlet to take action. Young Fortinbras has built an army to get back the lands his father lost to King Hamlet andRead MoreWilliam Shakespeare s Hamlet - Longing For Revenge1304 Words   |  6 PagesLonging for Revenge William Shakespeare was born in England in April of 1564 and was an English poet and playwright . Shakespeare is universally known as the greatest writer in the English language. Shakespeare frequently produced tragedies that are continuously acted out today, along with many plays and sonnets.. Although Shakespeare is seen today as a great writer who changed the world, his reputation did not rise to these heights until around the 19th century. In all of Shakespeare’s astoundingRead MoreHamlet By William Shakespeare : A Tragic Story That Entangles Madness, Deception, And Lies993 Words   |  4 PagesThe play â€Å"Hamlet†, by William Shakespeare, is a tragic story that entangles madness, deception, and lies in order to have revenge present in â€Å"Hamlet.† Throughout the play Hamlet seeks out his revenge on his uncle affecting everyone around him, as well as others who seek out revenge. By doing so those around Hamlet become part of the web Hamlet has weaved just to carry his fathers demand. In the play various people seek out revenge but through the plans of revenge it inevitably brings tragedy and unexpectedRead MoreA Tragedy Of Revenge By William Shakespeare1491 Words   |  6 PagesSusan Sibbach English IV 11 December, 2015 A Tragedy of Revenge In William Shakespeare’s play Hamlet, vengeance serves as a key aspect throughout the play causing the death of many characters. Each character constantly battles throughout the play and seeks revenge on one another. Some of the main conflicts lie right in the hands of the king. The death of a single character turned into a dysfunctional kingdom. The play focuses on the tragedy of revenge. Everyone in the play appears to not only

Race, Class and Gender - 1851 Words

Franklin (1987) also alluded that patriarchy did not serve black men; the notion of black men being domineering over groups is questionable. Besides, Pleck (2008) claimed that the male heterosexual-homosexual dichotomy is used as the main symbolic tool defining the rankings of masculinity. Highlighting racial politics, it would be interesting to have a study focusing on the power relations between white gay men and black heterosexual men. This is premised on the stance that the racial hierarchy, regardless of its dismissal, seems to continue to characterise socio-economic relations. stated that race remains a factor because it is deeply embedded within the subconscious, a discussion on this shall follow suit. McClintock (1992: 5)†¦show more content†¦Erasmus (2008) stated that apartheid discourse merged race, class, culture and nation together. While MacDonald (2006) argued that apartheid is rightly perceived as racism, it was also racialist. Racialists view race as a source of identity which marks difference between human beings. They regard identities as axes of political institutions and then urge states to be organized on the basis of race. Whitehead and Barret (2001) stated that in white supremacist contexts, black masculinities play symbolic roles for white gender constructions whereby whiteness and white men and women are the norm and blackness is the Other. Seekings (2008) buttresses this viewpoint as he argued that apartheid was a system aimed at ordering society and explicitly according to racial categories and this was achieved utilizing state power and its apparatuses. â€Å"Apartheid entrenched radicalized identities and fostered racial division at the same time as exacerbating inequality in the distribution of income† (Seekings, 2008: 5). Seekings (2008) also cited that the apartheid regime had three broad objectives. The first one was ideological in effort to maintain racial purity; policies prohibiting inter-racial marriage were formulated. Residential segregation was also enacted as part of this endeavour. Another objective cited by Seekings (2008) is that apartheid was utilized to establish and maintain economic privilege for the whiteShow MoreRelatedRace, Class And Gender1032 Words   |  5 Pages IN WHAT WAYS DO RACE, CLASS AND GENDER SHAPE PRACTICES AND EXPERIENCES IN PRISON? DRAW ON THEORIES AND EXAMPLES/CASE STUDIES TO SUPPORT YOUR CASE. OVERVIEW This essay will explore how race, class and gender shapes practices and experiences in prison. Firstly, a discussion of prison in general is necessary. In other words, what constitutes prisons, its aims and objectives and prison culture (Reeves, 2015). Currently there are 38,845 prisoners in Australia (Australian Bureau of Statistics, 2016)Read MoreClass, Gender, And Race1083 Words   |  5 PagesClass, Gender, and Race in To Kill A Mockingbird: Is Mayella Powerful? In the book â€Å"To Kill A Mockingbird†, Mayella Ewell is the conflict of the story. To challenge herself to see if she is powerful based on class, gender, and race. Mayella is powerful due to her race; however, she would not be powerful due to her class and gender. One might think she is powerful over all; however, she does not have power in the eyes of some readers. Proceeding on to see if Mayella has power in race. Mayella EwellRead MoreGender, Race, And Class957 Words   |  4 Pagesafforded by primarily white, rich males. The media in the United States has made a lot of progress towards showing gender and racial equality on TV but America still has a long way to go. As of 2015 white men still have a patriarchal ranking in media compared to women and minorities. This essay will be discussing how intersectionality, such as gender, race, and class, play a key part in gender roles in TV media today. Luxury is the main focus in Volvo Cars US’ commercial for their new Volvo XC90; butRead MoreRace, Gender, And Class1501 Words   |  7 Pages How did race, gender or class evolve in America in economic and social terms? Was race or class most important in shaping Colonial America and how do they interact today? Has the very idea of Class become almost synonymous with race (or ethnicity)? I would like to begin my research about immigration from what is was back in the day until modern times. Immigrants play such an important role in American History. People from different countries arrive to â€Å"The New World†, searchingRead MoreRace, Class, And Gender2137 Words   |  9 Pagesand be an enjoyable class to take. I had an idea of what the course would be about, but when I walked into the first class I was surprised how much the course would actually be covering in terms of race, class, and gender. Before taking Social Issues, I thought that the course would be exploring a broad range of social issues. My definition of social issues before the course was an issue that affected many individuals, not thinking specifically about race, class, and gender of all people. AfterRead MoreRace, Class, And Gender1976 Words   |  8 PagesMany of the results from the interview varied not only based on race, class and gender, but also from individual to individual. No matter what race or gender you are, a friend or family member different from you can have the same opinions, or in this case, some of the same answers to general life questions. I believe that these interview questions should not just be based on the race, class, and gender, but also the individuals themselves. From these questions and answers, one can get a true senseRead MoreRace, Class And Gender2035 Words   |  9 PagesFor this week the topics of our readings was Who Gets Ahead? Race, Class and Gender in Education. The readings focused on the inequalities that different groups face in our education system today. Some of the topics was how school classes create inequality, how activity participation plays a role in equality along with many other factors. A. Summary of Readings The Geography of Inequality For years people worked to desegregate schools so that every child no matter what color their skin was wouldRead MoreRace, Class, Gender2273 Words   |  10 PagesShaleen Seward SOC. 301, Race/Class/Gender Writing Assignment December 4, 2012 I am an American, says over 308,745,538 people in the United States this year (2010 Census Data.) These people originate from everywhere; America is a melting pot of culture, and that can unfortunately cause social inequalities to arise through the Matrix of Domination, a theory that mirrors the intersectionality of race, class, and gender, as coauthor of Race, Class, Gender, an Anthology Patricia HillRead MoreRace Class and Gender1003 Words   |  5 PagesWHAT ARE YOU TO DO WHEN LOOKING LIKE YOU DO IS NOT BEAUTIFUL? Beautiful. Everyone wants to look beautiful, but who determines what beautiful is? Being ugly is a problem that everyone fears. Getting under the knife on a surgical table is an answer to the problem. Eating an apple and only an apple, once a day is the other answer to the problem. The problem of not looking beautiful is slowly wiping out the naturally beautiful men and women. What are you to do when looking like you do, is not beautifulRead MoreRace, Class, Gender And Sexuality Essay953 Words   |  4 Pagesdemonstrate how race, class, gender and sexuality make certain experiences different. Intersectionality is the overlapping of social categories such as race, class, gender and sexuality that leads to further discrimination against a certain individual or group. To take an intersectional approach to understand race, class, gender and sexuality, is to consider hardships not as a similar element for all individuals without regards to race, but instead consider where in a specific h ardship different races, genders

Investigating Motivation and Attitudinal Loyalty †Free Samples

Question: Discuss about the Investigating Motivation and Attitudinal Loyalty. Answer: Introduction Professional athletes are sport people who are enrolled in various athletic teams to express their skills, natural talents and competitive drive for performance payment. Professional athletes are involves in vigorous training, excise and personal fitness. Professional athletes may be from various sports such as football, baseball, hockey, basketball or rugby. Professional athletics though is on the continuous rise has met opposition from those who views the professionalism as earning living contrary to expression of talents and enjoyment. Some of the professional athletes are Greg Ingilis and Tim Cahill both from Australia. Professional athletes agents on the other hand are legal representatives of professional athletes. The main role of athlete agents is to lead in contract negotiation with sponsors and branding endorsement. Brand ambassadors are sport people hired by companies to advance brand awareness (Erdogan Drollinger (2008, pp.573 - 582). The following report presents analys is of athletes as brand ambassadors. Greg Ingilis is Australian professional rugby player with many awards and position in his career. Greg Ingilis currently play for south Sydney Rabitton and previously Australian International representative for Melbourne Storm. Greg Ingilis has won two grand finals, medals and other award making Greg Ingilis one of the competitive brand ambassadors from Australia. Greg Ingiliss professional playing career began sometimes back in 2005 where Greg Ingilis scored 12 tries while playing for Brisbanes North Devils. Later in 2006 Greg Ingilis begin his career at State of Origin with Maroon team. Greg Ingilis is under the manger Allan Gainey as his agent that sign deals with sponsors (Fizel, McNeil Smaby 2008, pp.247-56). Greg Ingilis is brand ambassador for POWERADE ION4 hydration drinks that is product of Coca Cola Company. In promoting the drinks Greg Ingilis advocate that athletes lose up to 3liters of body fluid every one hour of excise. In addition, professional athletes can improve their performance through using hydration drinks thus managing stress for optimum training. Through different online sites Greg Ingilis endorses the POWERADE ION4 drinks as agent of increasing athlete performance. This implies that through many advertisements of POWERADE ION4 drinks Greg Ingilis has been featured as celebrity branding. Initially, Greg Ingilis had been know for promoting his own clothing brands yet the controversy stated when some of his clothing resemble another companys brands. Currently Greg Ingilis signed deal with coca cola Company for endorsement of its brand POWERADE ION4 hydration drink (Shuart 2007, pp 126-140). Tim Cahill legally named Timothy Filiga is Australian professional footballer currently playing for Melbourne city. Tim Cahill has been named all-time goal scorer for Australian national team owing to his aggressive and powerful approach during sports. In addition, Tim Cahill is one of the most famous professional footballers in Asian Football Confederation. Tim Cahill started his club career at Millwall. Later Tim Cahill move to Everton club where he became the Evertons top goal scorer in his first season. Since playing for Everton, Tim Cahill have played for many teams or clubs (Goldman Papson 2000). Currently Tim Cahill is under the management of his agent Ante Alilovic. Tim Cahill is an athlete who considers his interest first than the interest of sponsors. Tim Cahill criticise being under control of sponsor as having sponsors owning his celebrity image through brand endorsement. Tim Cahill endorsed menswear brand under the name Cahill+menswear produced by Shoreditch International Company. The company feature Tim Cahill in different range of products such as jackets, t-shirt, and shorts. The contract is under partnership between Tim Cahill and Shoreditch International Company. In addition, Tim Cahill successfully launch Australian mens grooming brand called Vitaman in China. Tim Cahill and Greg Ingilis are both celebrity professional athletes from Australia who feature in different brand adverts. According to Braunstein and Zhang (2005, pp 242-268), the two professional athletes have attracted many sponsors with the views to help in brand endorsement for various products in Australia and abroad. Greg Ingilis has been featured in coca cola company advert on its popular brand POWERADE ION4 hydration drink as compared to Tim Cahill who partner with Shoreditch International Company to endorse Cahill+menswear suits. The comparison is quite clear as initially did not endorse any brand except own fashion brand. Tim Cahill on the other hand according to Carlson Donovan (2008, pp.154-62), rejected formal contract with one company and instead partner with Shoreditch International Company to advance its brands (Kim, Morris Swait 2008, pp 99-117). Agents ability to maximize the objectives of all stakeholders Athlete agents normally communicate and keep in touch with various stakeholders. Some of the most common stakeholders that take part athletic career management are sponsors, team, team mangers, government agencies and club supporters (Harris 2008, p16). Firstly, sponsors contract athletes through their agents for signing of deals. Sponsors are mostly companies that involve athletes in endorsement of their products or brands and in turn sponsor athletes. Secondly, athletes are employed in various teams which form part of stakeholders and also sign deal with athletes. Thirdly, team mangers are important stakeholders that keep in touch with athletes agents. Team mangers supervise the activities of clubs, individuals or teams. Fourthly, government agencies that regulate athletes are Australian Sport Commission, Australian Olympic Committee, Confederation of Australian Sport and Australian Athletic Alliance. These government agencies monitor the terms of contract between athletes and thei r sponsors according to laws that govern sport in Australia (Jowdy Mcdonald 2002, pp 186-189). The uniqueness of sport industry places the sport agents at the central position in the communication link with team owners or sponsors. Athlete agents therefore play an important role in ensuring that the objectives of all stakeholders are maximised. To maximise objectives of all stakeholders, athletes agents provides contract law guidance, handle public relation matters and communicate with stakeholders (Keller 2003, pp.595-600). The complexity of professional athletes career requires agents that are familiar with contract laws. Athletes agents provide legal guidance to their clients and this makes most of agents to be lawyers who are conversant with contract laws. For instance, for Tim Cahill to sing the partnership deal with Shoreditch International Company his agent has understood the nature of partnership and the legal requirement. To maximise objectives of stakeholders such as Australian sport commission, Tim Cahill agents has to understand the requirements of the Australia constitution regarding brand promotion and athletes endorsement. Moreover, agents acts as negotiators or brokers for deals that are signed outside the country with another company or team that require understanding of foreign laws (Ueltschy Laroche 2004, pp.91-102). The second way that agents maximise objectives of stakeholders is through handle public relation matters. Most of the athletes public relation matters are dealt with through athletes agent. This implies that agents being the representative and mostly mangers represent athletes in public functions or matters that pertain to public interest. The public relation duty of athlete agents makes agents to work for several hours to meet stakeholders requirements. For instance, confrontation of Greg Ingilis due to personal fashion endorsement requires his agent Allan Gainey to explains the relationship between Greg Ingilis and the Jordan based company that manufacture the same clothes. This also ushered in another contract with Coca Cola Company to promote companys hydration drink brand (Kaynak, Salman Tatoglu 2008, pp 336-357). Thirdly, athletes communicate with stakeholder such as sponsors, sport regulators and teams. Agents are legally allowed to communicate with team managers, or other stakeholders on behalf of their clients. Objectives of stakeholders such as sponsors are to maximize their terms of contract with athlete. For instance, brand endorsement requires that athletes promote certain brand according to the agreement with the company. To evaluate the level of endorsement agents keeps in touch with company and the athlete to ensure objects are met. Furthermore, agents communicate with sport regulators on the legal issues that touch their clients. Therefore, agents play an important role in ensuring that objectives of stakeholders are met according the requirement of laws and contract (Till 2001, pp 35-42). Effectiveness of the athlete and their major endorsement contract Athletes can endorse varieties of brand whether related to sport or completely different product from sport. The effectiveness of athletes endorsement for brand also differs from one brand or athlete to another. Some of the factors that contribute to the effectiveness endorsement are provision of celebrity image, attractiveness, credibility of the product and endorser characteristics attached to the brand. According to Augustine-Schlossinger (2003, p.43), the effectiveness of athletes endorsement lies on the credibility of the source athlete. Credibility model of effectiveness of the endorsement explains that credibility of message and expertise of the endorser has a lot to offers in endorsement. For endorsement to be effective the attributed message need to trustworthy thus appealing to customers that buys the product that has been endorsed. For instance, Greg Ingilis endorsement of his own fashion attracted the attention of customers labelling him as most wanted man. The primary cause of negative reaction from public was due to lack of credibility of clothes that the athlete endorsed. In addition, many customers considered that the products were from a totally different company though Greg Ingilis did not recognise the original manufacturer of the fashion (Summers Johnson 2008, pp 176-182). Attractiveness of the endorsement that link celebrity athlete and the similarity with endorsement plays an important role in effectiveness of endorsement. Physical attractiveness of the endorser is critical when analysing the effectiveness of endorsement. This attractiveness is based on the beauty though customers perceive physical attractiveness differently. Matchup model for brands give the guidelines that is used to matchup brand and celebrity athlete. Therefore congruency or fit between athlete and product endorsed many consultants attribute to the success of brand endorsement. Tim Cahill signed partnership with Shoreditch International Company to endorse menswear in a very attractive look. Some of the advertisements that feature Tim Cahill show features that are indistinguishable between brand and Tim Cahill. Thus the Tim Cahill endorsement can be termed by many consultants as successful (Richard 2007, pp 1). The final feature that explains the effectiveness of endorsement is endorser characteristics attached to the brand. Celebrity characteristics that an athlete poses in combination with credibility and attractiveness provides an interaction with product endorsed. Expertise and attractiveness of celebrity endorser can form inseparable characteristic making endorsement effective. This implies that athletes concentrate on its endorsing brands that are related to their area of expertise. Customers can link brand and celebrity athletes through congruency of their characteristics. Cultural attractiveness as a characteristic of celebrity endorsement can attract customers curiosity to learn the expertise of the athlete making it effective (Rein, Kotler Shields 2006, pp 30-31). The most effectiveness brand and endorsement The most effective endorsement is Greg Ingilis endorsement of POWERADE ION4 hydration drink. The endorsement of POWERADE ION4 hydration drink provides the link between product and the celebrity athlete (Ross, James Vargas 2006, pp 260-279). Firstly, POWERADE ION4 hydration drink is important product in athletes as it increases performance of athlete during excise thus customers can get attracted. Secondly, POWERADE ION4 hydration drink is manufactured by Coca Cola Company making its information credible and of good reputation. The attractiveness in POWERADE ION4 hydration drinks advertisement owing to the physical fitness of Greg Ingilis. Furthermore, the attractiveness of the advert is based on the pictures drown from Greg Ingilis doing excise in the field. Tim Cahill contract with Shoreditch International Company though resulted in production of menswear; the area of expertise differs making the endorsement not that much appealing to customer as compared Gregs endorsement. In Tim Cahill, the depiction of celebrity image is brought about with Tim Cahill though brand remains totally different from athlete. Moreover, endorsement is on partnership as oppose to Gregs endorsement that is a different contract (Low Lamb 2000, pp 350-368). There are number of issues that arises in brand endorsement or sponsorship for professional athletes Some of the issues are include conflict of interest, the length of endorsement term, credibility of athlete, number of sponsors and athletes retirement. Conflict of interest differs between sponsors and athletes they sponsor. The difference in interest has impact on the brand or terms of contract. For instance, conflict arose when many sponsors wanted to sign contract with Greg Ingilis a deal that was denied by the.... Greg Ingilis agents wanted high earning as compared the expected earning that is set by the governmental regulatory agency. AFL also protects sponsors from exploitation by agents negotiating deals on behalf of their clients. The exploitation arises when athlete needs high earning from brand endorsement as compared to return on the endorsement (Malhotra Peterson 2006). Moreover, Tim Cahill highlighted his interest as the core for contract not sponsors interest. This made Tim Cahill to reject normal contract for brand endorsement for fear of being owned or company owning his celebrity image. Credibility of the athlete also determines the effectiveness of the contract between sponsor and athlete. The trustworthiness of both sponsor and athlete determines the objective achievement for both parties involved. The credibility also arises on the brand that is under endorsement as credibility play role in making customers like a product subsequently impacting the contract between sponsor and athlete. The communication link between athlete and sponsor also play role as sponsor trust those athletes that are in continuous contact with them. Moreover, brand value is lifted through continuous contact between athlete and sponsoring company. This has been contradicted by those who view it as being owned by sponsor. Some athletes such as Tim Cahill therefore shift to partnership instead of sponsors (Neale Funk 2006, pp 307-317). Number of sponsors that athletes can have differs depending on the contract terms. Some companies such as Nike have numerous numbers of athletes that they sponsor. Sponsorships terms determine the number of sponsors that one athlete can have at ago. In addition, some products require one athlete at one time to feature in their products. This is quite different with the case of sponsors who can sponsor as many athletes as possible. Within specific time frame, an athlete can contract single sponsor hence feature in its products without doubling sponsors. Brand owners on the other hand can stipulate a number of sponsorship with many athletes under different contract (Kim, Morris Swait 2008, pp 99-117). Conclusion In conclusion, athletic management provides structure and strategies that are used to manage professional athletes. Professional athletes are sport people who are employed in sport teams or clubs. Professional athletes are managed by their legal agents who negotiate contract deals with sponsors and other stakeholders. Athletes are used in brand endorsement for advertising brands for companies that acts as their sponsors. Two examples of professional athletes are Tim Cahill and Greg Ingilis who have taken part in brand endorsement of different products, agents and different companies. Factors such as attractiveness, credibility and characteristics of endorsement determine the effectiveness of celebrity athlete brand endorsement. Finally, athletes agents relationship with stakeholders can help maximise the achievement of stakeholders objectives. References Augustine-Schlossinger, L, 2003, Endorsement Contracts for Professional Athletes. The Colorado Lawyer, vol.32, no.1, p.43. Braunstein, JR, Zhang, JJ, 2005, Dimensions of athlete star power associated with Generation Y sports consumption. International Journal of Sports Marketing and Sponsorship, vol.6, no.4, pp 242-268. Carlson, BD, Donovan, DT, 2008, Concerning the Effect of Athlete Endorsements on Brand and Team-Related Intentions. Sport Marketing Quarterly, vo.17, no.3, pp.154-62. Erdogan, BZ, Drollinger, T, 2008, Endorsement practice: how agencies select spokespeople. Journal of Advertising Research, vol.48, no.4, pp.573 - 582. Fizel, J, McNeil, CR, Smaby, T, 2008, Athlete Endorsement Contracts: The Impact of Conventional Stars. International Advances in Economic Research, vol.14, no.2, pp.247-56. Goldman, R, Papson, S, 2000, Nike Culture. London: Sage Publications Harris, J, 2008, Why Business is likeSporting Talent, Management Today, p16. Jowdy, E, Mcdonald, M, 2002, Tara Nott Case Study: Celebrity Endorsements and Image Matching. Sport Marketing Quarterly, vol.11, no.3, pp 186-189. Kaynak, E, Salman, G, Tatoglu, E, 2008, An integrative framework linking brand associations and brand loyalty in professional sports. Journal of Brand Management, vol.15, no.5, pp 336-357. Keller, KL, 2003, Brand Synthesis: The Multidimensionality of Brand Knowledge. Journal of Consumer Research, vol.29, no.4, pp.595-600. Kim, J, Morris, J, Swait, J, 2008, Antecedents of true brand loyalty. Journal of Advertising, Vol.37, no.2, pp 99-117. Low, Lamb 2000, The measurement and dimensionality of brand associations. The Journal of Product and Brand Management, vo.9, no.6, pp 350-368. Malhotra, NK, Peterson, M, 2006, Basic Marketing Research: A Decision-Making Approach. 2nd ed. New Jersey: Pearson Prentice Hall. Neale, L, Funk, D, 2006, Investigating motivation, attitudinal loyalty and attendance behaviour with fans of Australian Football. International Journal of Sports Marketing Sponsorship, vol.7, no.4, pp 307-317 Rein, I, Kotler, P, Shields, B, 2006b, A Sporting Chance at Branding. Brand Strategy, pp 30- Retrieved February 17, 2009, from https://www.theelusivefan.com/sports_branding.pdf Richard, TK, 2007, Fundamental Fairness in Union Regulation of Sports Agents. Connecticut Law Review, Vol 40, pp 1 Ross, S, James, J, Vargas, P, 2006, Development of a Scale to Measure Team Brand Associations in Professional Sport. Journal of Sport Management, vol.20, no.2, pp 260-279. Sessions, W, 2004, Sportsmanship as Honor. Journal of the Philosophy of Sport, vol.31, no.1, pp 47-59 Shuart, J, 2007, Heroes in sport: assessing celebrity endorser effectiveness. International Journal of Sports Marketing Sponsorship, vol.8, no.2, pp 126-140. Summers, J, Johnson Morgan, M, 2008, More than just the media: Considering the role of public relations in the creation of sporting celebrity and the management of fan expectations. Public Relations Review, vo.34, no.2, pp 176-182. Till, B, 2001, Managing athlete endorser image: the effect of endorsed product. Sport Marketing Quarterly, vol.10, no.1, pp 35-42. Ueltschy, LC, Laroche, M, 2004, Co-Branding Internationally: Everyone Wins? Journal of Applied Business Research, vol.20, no.3, pp.91-102.

Report on Atlas Honda free essay sample

Departmental Head KUBS Karachi Dear Mr. Zaki Subject: Submission of Term Report 2013 Here is the report that you asked us to prepare during the project development. The report contains in detail the strategies employed by Atlas Honda Ltd. It contains the macro-environmental, company and competitor, Micro-environmental and internal, strategic analysis and strategic implementation of Atlas Honda. It has been a privilege to work on this assignment and have put in our utmost effort in order to prepare a comprehensive report on the topic. Should you have any queries concerning the report, we will be happy to discuss them with you. Thank You. Sincerely, Nabil Ahad Khan RESEARCH HYPOTHESIS Ho: Atlas Honda should continue product improvement at low cost HA: Atlas Honda should not continue product improvement at low cost Ho: Atlas Honda should go for backward integration HA: Atlas Honda should not go for backward integration Ho: Atlas Honda should adopt proactive approach HA: Atlas Honda should not adopt proactive approach PAKISTAN’S MOTORCYCLE INDUSTRY AN OVERVIEW In Pakistan, motorcycle assembly started in 1964 when the local Atlas Group started assembling Honda motorcycles in Karachi. We will write a custom essay sample on Report on Atlas Honda or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Currently in addition to Honda, the other Japanese brands being manufactured in Pakistan include Yamaha and Suzuki. The most successful design among the Japanese brands has been the Honda 70CC which enjoys tremendous popularity on account of its fuel economy, resale and low maintenance features. The Pakistan Automotive Manufacturers Association (PAMA) was formed in 1984. Initially three motorcycle OEMs namely Atlas Honda, Dawood Yamaha and Suzuki Motorcycles Pakistan became PAMA members. The other founding members of PAMA were OEMs manufacturing Passenger Cars, Tractors, Light Commercial Vehicles (LCV’s), Truck Bus manufacturers etc. In the 1990’s, three more OEMs joined PAMA, these were, Fateh Motors, Pakistan Cycle Industrial Cooperative Society Limited and Siagol Qingqi Motors Ltd (subsequently renamed Qingqi Motors Ltd. ). The Non-Japanese OEMs entered the Pakistani market in the late 1990’s by introducing clones of the popular Honda 70CC motorcycle using critical parts and components imported from China. For the basic frame and other low tech parts they used the local vendors (part suppliers) whose development had been facilitated by the Government of Pakistan’s indigenization / localization programs for the motorcycle industry. Other than the original 3 Non-Japanese OEMs who became PAMA members, the new entrants preferred to form their own trade bodies and as such are referred to in this study as Non-PAMA members. Presently there are 43 OEMs producing various brands of motorcycles. Out of these 6 are PAMA members and the remaining 37 Non-PAMA members. The Engineering Development Board (EDB) issues licenses to the OEMs for undertaking assembly operations. The Pakistan Standards Quality Control Authority (PSQCA) is responsible for monitoring the production of quality products by the OEMs. As such both the EDB and the PSQCA play an important role in the establishment, licensing and monitoring of the technical operations of the motorcycle assemblers. Figure -4 Market Shares of PAMA NON-PAMA Members Market shares of the major OEMs are shown in Table 4. Table – 4 | |Market Shares of Major OEMs | |S # |OEM Brand |Member of PAMA or |Units |Market Share % |Units |Market Share %| | | |Non-PAMA |(Jan – Dec 2011) | |(Jan – April 2012) | | |1. |Atlas Honda |PAMA |251,232 |55. 0 |96,943 |56. 0 | |2. Dawood Yamaha |PAMA |48,477 |11. 0 |15,515 |5. 0 | |3. |Hero |PAMA |27,725 |6. 0 |7,810 |5. 0 | |4. |Star |NON-PAMA |20,283 |4. 0 |4,600 |3. 0 | |5. |Pak Hero |NON-PAMA |18,982 |4. 0 |8,147 |5. 0 | |6. |Pak Suzuki |PAMA |16,92 6 |4. 0 |4,997 |1. 0 | |7. Sohrab |PAMA |13,390 |3. 0 |4,292 |2. 0 | |8. |Metro |NON-PAMA |4,075 |1. 0 |719 |lt; 1. 0 | |9. |Others |NON-PAMA |52,142 |12. 0 |30,116 |17. 0 | | |Total | |453,231 |100. 0 |172,739 |100. 0 | | | |PAMA |357,750 |79. 0 |129,557 |75. | | | |Top Four NON-PAMA |43,339 |10. 0 |13,466 |8. 0 | | | |Balance | |11. 0 | |17. 0 | |Source: Provincial Excise Taxation Departments of Sindh Punjab | Table 4 shows that in 2006, the PAMA members had 79% market share, the top 4 Non-PAMA OEMs held another 10%, while the balance 11% market share was split between 33 Non-PAMA OEMs! This large number of manufacturers with small market shares seems to indicate that the industry is in for a major shake down with a number of smaller OEMs either closing or merging. Although the number of assemblers has increased from 3 to 43 the PAMA members continue to hold the dominant market position with 79% of the market share with Atlas Honda alone accounting for 55% of all new motorcycles sold in Pakistan. With the increase in production, the prices of motorcycles have come down considerably. In 1999 – 2000, the price of a Honda 70CC motorcycle was Rs. 68,000. The same year the Non-PAMA OEMs supplied 70CC clones for Rs. 50 – 52,000. In order to compete with the Non-PAMA OEM products, Atlas Honda and other PAMA members considerably reduced prices. As a result of these price reductions, the Honda 70CC is currently selling at Rs. 54,000, Non-PAMA member clones are available in the Rs. 35 – 42,000 range. If this trend in prices continues, the market is likely to expand further. CURRENT SCENARIO After witnessing a deceleration in motorcycle sales growth last year, the year under review witnesses a growth in motorcycle sales. This was possible due to overall competitive pricing, despite the fact that there was a consistent rise in general commodity price in the international markets, particularly the steel. This coupled with rising inflation and weakening rupee, led the cost to pass on to the consumer. The installed capacities in almost all the sub-sectors have continued to increase, indicating a strong commitment on part of the strategic investors to the country and the long term prospects of the industry. From an installed capacity of 1. 1 million units in 2005-06, the industry expanded with a capacity to 2. million units till 2011-13. The motorcycle sector experienced an overall growth in sales of around 30 percent over the last five year. However, the industry is being held back by certain factors. First, the unorganized sector is taking unfair price advantage as it is flouting the governments efforts to create a level playing field by avoiding taxes and governments levies. Therefore, this is posing u nfair competition. Secondly, the ever-increasing cost of inputs is pushing up production costs exponentially. This may be a hindrance to the industrys aspiration to become export-oriented. COMPANY BACKGROUND Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co. , Japan. The merger of Panjdarya Limited and Atlas Autos Ltd. created the company in 1988. The Atlas Group established both these motorcycle-manufacturing concerns. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh. Atlas Honda Limited manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service. Atlas has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an RD wing and tool making facilities through CDA CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 14 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 5 Joint Venture/Technical Assistance Agreements other than Honda. Atlas management is striving to modernize company operations by adapting applicable aspects of research and theory and more specifically, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology. Efforts are being made to develop participation at all levels of personnel in decision-making and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as ‘Ala Mayar’ Quality Circles movement, launched in 1985, are strongly encouraged to allow constructive self-expression and teamwork. Atlas Honda is playing a pioneering role in creating conditions for easy and confident use of motorcycles all over the country. A vast and growing network of over 1600 motorcycles sales service and spare parts dealers has been established. In order to back up this system, Atlas has set up Technical Training Centers in Karachi and Lahore which provide several courses of varying duration and complexity for motorcycle mechanics and users each year. Mobile training facilities take the latest know-how, technology and maintenance of motorcycles to major rural and urban centers around the country. VISION To be a market leader in the motorcycle industry, and emerge as a globally competitive center of production and exports. MISSION A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects. Types of Products Manufactured DIFFERENT VARIANTS |CD 70 |[pic] | |Honda CD 70 is the No. 1 choice in motorcycles. In addition to its |[pic] | |established superiority in terms of great speed and fuel economy, | | |the Honda CD 70 is presented with special features. The new | | |attractively designed CD 70 is right there at the top, with an | | |aerodynamic shape, super econo-power, a smoke-free 4-Stroke engine | | |and the special Honda 12-volt CDI technology. | |The new eye-catching graphics, front and rear mud-flaps, comfortable| | |seat and the new utility box have made Honda CD 70 an ideal | | |combination of elegance and durability. Because of its high resale | | |value, Honda CD 70 is an asset in your life. Its excellent petrol | | |average makes it greatly economical, and its easily available spare | | |parts ensure trouble-free companionship. | | |CD 100 |[pic] | |Quality, Performance, Speed, Economy Petrol and Re-sale Value define |[pic] | |Honda Motorcycles. All these have managed to successfully bag your | | |trust on the New Honda CD100. It is a stunning result of advanced | | |Japanese technology and right up there as an outstanding performer | | |representing all the qualities that make Honda motorcycles so | | |special. | |CG 125 |[pic] | |New Honda CG 125 is the ideal combination of elegance and |[pic] | |power. Its speed and performance symbolizes the true essence | | |of modern life. | | | | |The 125 cc 4-stroke engine generates 11-Horse Power with low | | |fuel consumption. It is ideal for high speed, long runs and | | |rough pathways. | | | | |Honda CG125 has a CDI Ignition System and a 12-volt battery | | |(instead of 6-volt). The headlight and indicators are | | |brighter, with an easy starting-up of the engine. | | Industry Product Life Cycle 70 CC ? 100CC Up to 175CC MACRO- ENVIRONMENTAL INDUSTRY ATTRACTIVENESS The Five Competitive Forces ANALYSIS OF 2 WHEELER INDUSTRY [pic] ASSESMENT OF INDUSTRY ATTRACTIVENESS THREAT OF NEW ENTRANTS LowModerateHigh Threat of new enter is 4 out of the scale of 10 and is low as ? Capital requirements is high and to establish such industry large financial resources are needed in order to compete can deter new entrants. Due to the capital requirement, anly few large brands exist in the market which are Honda itself, Yamaha and Suzuki. Large capital requirements are required for setting up distribution channels and heavy advertising for new entrants, to compete against major well-established brands. Hence, threat from new entrants is minimum. ? Major players enjoy significant economies of scale and have strong brand identity. ? Large capital requirements are required for setting up distribution channels as the motor bikes has to be distributed in whole Pakistan. ? Government restriction also plays a important part as taxes are high on every vehicles sold in Pakistan. Threat of Entrants | |   |Yes |Moderate |No | | |(+) | |(-) | | | | | | |   |   |   |   | | Do large firms have a cost or performance advantage in your segment of the industry? | |   | | | |? | | | | Are there any propriety product differences in your industry? |   |? | | | Are there any established brand identities in your industry? |?    |   | | Do your customers incur any significant costs in switching suppliers? |   |  ? | | | Is a lot of capital needed to enter your industry? |  ? |   | | | Does the newcomer to your industry face difficulty in accessing distribution channels? | |  ? | | | | | | | |Does experience help you to continuously lower costs? |   |? |   | |Does the newcomer have any problems in obtaining the necessary skilled people, materials or|? |   | | |supplies? | | | | | | | | |Does your product or service have any proprietary features that give you lower costs? |  ? |   | | | | | | | |Are there any licenses or qualifications that are difficult to obtain? |   |   |? | |Can the newcomer expect strong retaliation on entering the market? | |   |  ? | |Is serviceable used equipment expensive? |  ? |   |   | |Total |6 |4 |2 | BARGAINING POWER OF BUYERS LowModerateHigh Bargaining power of buyer is 4 out of the scale of 10 and is low as ? Generally, prices of bikes are fixed by the company and retailers have almost fixed profit margins. Therefore, they are not able to bargain for proper discounts. ? Most of the consumers are brand loyal, while few consumers has become increasingly price conscious and are therefore, not very brand loyal. ? The bikes manufacture by different companies can be differentiated in terms of their horse power, comforts and mileage. |2. Bargaining Power of Buyers | |(To what extent are your customers locked into you? | | | |   |Yes |Moderate |No | | |(+) | |(-) | | | | | | |   |   |   |   | |Are there a large number of buyers relative to the number of firms in the business? |? | | | | | | | | |Do you have a large number of customers, each with relatively small purchases? |? | | |Does the customer face any significant costs in switching suppliers? | | | | |Does the buyer need a lot of important information? |? | | | |Is the buyer aware of the need for additional information? | | |? | |Is there anything that prevents your customer from taking your function in-house? | |? | | | | | | | |Your customers are not highly sensitive to price | | |? | |Your product is unique to some degree or has accepted branding |? | | |Your customers businesses are profitable | |? | | |You provide incentives to the decision makers | | |? | |   |   |   |   | |Total |4 |3 |3 | THREAT OF SUBSTITUTES LowModerateHigh Threat of substitutes is 3 out of the scale of 10 and is low as ? Substitutes have performance or cost differences as cars, cycles, and public transport have different prices and convenience. |3. Threat of Substitutes | |(some other product or service that performs the same job as yours) | | | |   |Yes |Moderate |No | | |(+) | |(-) | | | | | | | |   |   |   | |Substitutes have performance limitations that do not completely offset their lowest |? | | | |price. Or, their performance is not justified by their higher price. | | | | | | | | | |The customer will incur costs in switching to a substitute. |? | | | |Your customer has no real substitute. |? | | | |Your customer is not likely to substitute. |? | | |   |   |   |   | |Total |4 | | | BARGAINING POWER OF SUPPLIERS LowModerateHigh Bargaining power of Suppliers is 7 out of the scale of 10 and is high as ? The vendors that make parts of bike are few in numbers and there is no more substitution for the vendors as imported parts are more expensive then making local parts. ? Switching cost of supplier is high as the company makes long term contracts with the vendors and suppliers of parts like batteries. And vendo rs make parts on special order, size, power and design of bike for particular company |4. Bargaining Power of Suppliers | | | |   |Yes |Moderate |No | | |(+) | |(-) | | | | | | |   |   |   |   | |My inputs (materials, labor, supplies, services etc. ) are standard rather than unique or | | |? | |differentiated. | | | | | | | | |I can switch between suppliers quickly and cheaply. | |? | | |I can substitute inputs readily. | |? | | |I have many potential suppliers. | | |? | |My business is important to my suppliers. |? | | | |My suppliers would find it difficult to enter my business or my customers would find it difficult to|? | | | |perform my function in-house. | | | | | | | | | |My cost of purchases has no significant influence on my overall costs. | | |? |   |   |   |   | |Total |2 | 2 |3 | RIVALRY AMONG EXISTING COMPETITORS LowModerateHigh Rivalry among existing competitors is 9 out of the scale of 10 and is high as ? There are many companies that produces motor bike which include major brands like Honda, Yamaha and Suzuki but also bikes from China whi ch are assemble here and sold with local names. And all trying to increase their market share. ? Imports of bikes from China. As there are around 24 local brands bikes from China which are assemble here and sold with local names ? From the start of 2009, the demand for bikes has fallen 21% from the previous year. So Industry growth is slow. |5. Determinants of Rivalry among Existing Competitors | |   |   |Yes |  Moderate |No | | | |(+) | |(-) | |   | | | | | |   |   |   |   |   | |1)|The industry is growing rapidly. |? | | | |2)|The industry is not cyclical with intermittent overcapacity. | |? | | |3)|Fixed costs of the business are a relatively low portion of total costs. | | |? | |4)|There are significant product differences and brand identities between the competitors. |? | | | |5)|The competitors are diversified rather than specialized | | |? |6)|It would not be hard to get out of this business because there are no specialized skills and | |? | | | |facilities or long term contract commitments, etc. | | | | |   | | | | | |7)|My customers would incur significant costs in switching to a competitor. | | |? | |8)|My product is complex and requires a detailed understanding on the part of my customer | | |? | |   | | | | |9)|My competitors are all of approximately the same size as I am. | | |? | |   |à ‚   |   |   |   | |   |Total |2 |2 |5 | OVERALL ATTRACTIVENESS | |Summarized Worksheet | |   |   |Favorable |Moderate |Unfavorable | | | | | | | |1) | Threat of new entrants |?    | | | | | | | | | 2) |Bargaining Power of Buyers |? |   |   | | | | | | | | | | | | | |3) |Threat of Substitutes |? |   |   | | | | | | | |4) |Bargaining Power of Suppliers |   | |? | | | | | | | | | | | | |5) |Intensity of Rivalry among Competitors | |   |  ? | | | | | | | | | | | | | |   |Overall Rating |3 |0 |2 | FINAL ANALYSIS The Porters 5 forces model shows that the motor vehicle is a favorable industry as Threat of new entrance, Bargaining power of buyer and Threat of substitute are favourable for the industry as there are substitutes for the motor bikes but the substitutes are expensive like car or there is large difference in performance like cycle or public transport. The Bargaining power of buyer is low as prices are fixed by the company and capital requirement for entering into this business is high due to which threat for entry is favourable for this industry. Where as Intensity of Rivalry among Competitors and Bargaining Power of Suppliers is unfavorable as rivals are of same size and imports of bikes and their parts is now common in this industry. The suppliers are few so it’s unfavourable. INDUSTRY DRIVING FORCES Social-Environmental [pic] PEST ANALYSIS Political Nearly 80-86% of the raw materials required for manufacturing motorcycles in Pakistan are imported, so costs are also exposed to currency fluctuations risk. Any devaluation of the Rupee currency will make the raw materials much more expensive making it unfeasible for the Japanese motorcycle manufacturers to maintain their quality standards. Government policies regarding local manufacturing also affect the whole industry. Local manufacturing is favored by government. Hence the policy has shown better than expected results. Economic The current improving economic scenario of Pakistan is acting as a catalyst by further giving acceleration to the currently already booming motorcycle industry. The improving economic scenario especially on the agriculture side is helping the motorcycle manufactures increasing their sales further. The improved forecasted GDP estimates and a good crop expected during the following years is going to give a boost to the motorcycle industry, as its rural sales are growing above 50% and constitute the major percentile of revenue for the motorcycle industry. The main sources of income for most of the farmers are their crops and good crops means for motorcycle manufacturer’s good motorcycle sales. Therefore, the growth on the production of food crops (which accounts for 65 to 70 percent of the cropped area) and all the major crops of Pakistan which are also exported are going to earn a fairly large amount of foreign exchange. Thus, contributing a foremost part in GDP and GNP and meaning future growth in motorcycle industry. Also, employment in motorcycle industry has increased substantially, as new capacities and suppliers have come on line. Social Social factors also play a significant and key role in this industry as well established brands are taken on the advice of friends, family and relatives. They are the major influencers in this industry. Technological New and new features are being added by new motorcycle manufacturers to entice the customers towards them. Existing manufacturers, who need to stay ahead of the game, must have to upgrade their facilities and get state of the art equipment to retain their customers by innovating and giving their motorbikes the edge and value for money. On the other hand, a manufacturer can opt for using cheap technology to sell the final product later at cheaper price (Chinese technology). |External Factor Evaluation Matrix | Atlas Honda | |KEY EXTERNAL FACTORS |Weights |Rating |Weighted Score | |OPPORTUNITIES | | | | |1. Growing motorcycle market – Estimated bikes 850,000 by the end of |0. 2 |4 |0. 8 | |2011-12 compared to 750,000 in 2010-11 | | | | |2. Improving economic scenario of Pakistan by contributing more through |0. 1 |3 |0. 3 | |increased selling. Growth in Agriculture sector with good crop expected | | | | |next year. | | | | |3. Customers realizing quality matters, as problems are already cropping up|0. 05 |3 |0. 15 | |in new entrants models | | | | |4. Newer segments introduced with entry of new models, design, which still |0. 1 |2 |0. 2 | |have huge potential for growth | | | | |5. Karachi, a city which has tremendous potential for growth and |0. 1 |3 |0. | |profitability. | | | | |6. New Export Markets like India which has an annual market size of 50 |0. 1 |2 |0. 2 | |million motorcycles per annum opening due to WTO Agreement | | | | |THREATS | | | | |1. Many new features inherent in latest bike models increasing customer |0. 1 |3 |0. | |expectations a great deal for the future | | | | |2. WTO (World trade Order) opening local markets for global competition. |0. 1 |1 |0. 1 | |3. Competitors launching newer models with stress on reduced price for our |0. 1 |2 |0. 2 | |price-sensitive economy proving serious threat in near future | | | | |4. Theft and snatching of bikes increasing, reaching more than 2000 b ikes |0. 5 |1 |0. 05 | |in 2012 | | | | |TOTAL |1. 00 | |2. 6 | ANALYSIS: The Company is able to respond adequately to the future opportunities and the threats its faces as its score is 2. 6 which is above the average score of 2. 5. Ground is all set for atlas Honda to explore tremendous opportunities available in the Pakistani market because of it is the virtual ruler of the industry. With over 50% market share reflect the amount of effort that has been put in to reach this point. †¢ This year agricultural output is estimated to grab in good figures which means an opportunity for Honda to capitalize on and increase the sales. †¢ Karachi is an untapped potential market with a population of 2 million and urban population of more than 14 million. †¢ Bad quality of Chinese bikes has made people to think about making a trade off between quality and cost. †¢ Apparently this huge success seems a big achievement but it is a big threat in itself because even 1% drop in market share means a huge loss in terms of volume, as experienced recently with the introduction of Chinese bikes. Theft and bike jacking is a real threat that is arising and a major factor in the popularity of Chinese bikes besides the low cost factor. †¢ Karachi market is averse of buying Honda just because of this single factor. †¢ WTO is creating an alarming situation and it will be a mammoth task to deal with the global competition, it will be very difficult for local manufacturers to cope up with low-cost better quality Indian bikes. Company Competitor Analysis COMPETITOR ANALYSIS The total number of approved Motorcycle assemblers / manufacturers by â€Å"Engineering Development Board† (EDB) in Pakistan has reached to 29, which include three Brands of Japanese origin while remaining 26 being produced indigenously with the help of Chinese technology. The Japanese bike-makers are: |S. No. Japanese Company |Joint Venture in Pakistan | |1. |Honda |Atlas Honda Ltd. | |2. |Yamaha |Dawood Yamaha Ltd. | | | | | |S. No. |Japanese Company |Subsidiary Company in Pakistan | |3. |Suzuki |Suzuki Motorcycle Pakistan Ltd. | Actual Production of these Japan based Bike manufacturers are as follows: |Atlas Honda |Yamaha |Suzuki | |Per day production |900-1000 units |500 units |100 units | |Per month production |30,000 units |15,000 units |3,000 units | |Per yea r production |350,000 units |180,000 units |36,000 units | Competition from Chinese Manufactures Gone are the days when Honda, Yamaha and Suzuki had virtually ruled the Pakistani roads. Time has now changed. Chinese bikes of various names are now running side by side with the Japanese. Following is list of these 29 assemblers / manufacturers (local and imported) and their production capacities approved by EDB. | | |Products Model |Approved Production Capacity | |S. No. Manufacturers | | | |1 |Memon Associates Foundry, Hyderabad. |Super Star SS – 70 |12,000 Units per annum | |2 |Fateh Motors Ltd, Hyderabad. |Hero RF – 70 |15,000 Units per annum | |3 |Shafiq Sons, Hyderabad. |Jinan JN –70 |3,000 Units per annum | |4 |DS Motor, Hyderabad. |Unique UD – 70 |8,000 Units per annum | |5 |N. J. Auto Industries, Karachi. |Super Power SP – 70 |25,000 Units per annum | |6 |Deewan Motorcycles Ltd, Karachi. Star DS – 70 |20,000 Units per annum | |7 |Ahme d Automobile Co, Karachi. |Safari SD – 70 |10,000 Units per annum | |8 |Dawood Yamaha Ltd, Karachi. |Yamaha YB – 100 |50,000 Units per annum | |9 |Sitara Auto Impex, Karachi. |Guangta GT – 70 |3,000 Units per annum | |10 |Suzuki Motorcycles Pakistan Ltd, Karachi. |Sprinter 110 |53,000 Units per annum | |11 |AB Engineering (Pvt. ) Ltd, Karachi. |Laser AB – 70 |25,000 Units per annum | |12 |Raja Auto Cars Ltd, Karachi. Hawk 70 CC |15,000 Units per annum | |13 |Atlas Honda Ltd, Karachi. |Honda CD – 70 |350,000 Units per annum | |14 |Supersonic Corporation, Karachi. |Supersonic SC – 70 |10,000 Units per annum | |15 |Pakistan P. C. I. C. S. Ltd, Lahore. |Sohrab JS – 70 Plus |25,000 Units per annum | |16 |Pak Hero Industries Ltd, Lahore. |Pak Hero PH – 70 |20,000 Units per annum | |17 |United Sales, Lahore. |United US – 70 |20,000 Units per annum | |18 |Excel Industries, Lahore. Excel XL – 70 |5,000 Units per annum | |1 9 |Saigols Qingqi Motors Ltd, Lahore. |QingQi CD – 100 |32,900 Units per annum | |20 |New Asia Automobiles, Lahore. |New Asia NA – 70 |9,000 Units per annum | |21 |Zxmco Pakistan Ltd. |Zxmco ZX – 70 |10,000 Units per annum | |22 |HKF Engineering (Pvt. ) Ltd, Lahore. |Ravi RA – 70 |30,000 Units per annum | |23 |Blue Satr Automobiles, Lahore. |Blue Star CM – 70 |10,000 Units per annum | |24 |Metro Hi –Tec Industries (Pvt. ) Ltd, Lahore. Metro MR – 70 |20,000 Units per annum | |25 |Suleman Auto Industries (Pvt. ) Ltd, Lahore. |Geo 70 CC |10,000 Units per annum | |26 |Super Asia Motors, Gujranwala. |Super Asia SA – 70 |9,000 Units per annum | |27 |Toyo International Motorcycles, Gujranwala. |Toyo TG – 70 |10,000 Units per annum | |28 |Ghani Automobile Industries Ltd, Lahore. |Ghani Gi-125-16 Black |10,000 Units per annum | |29 |King Hero Motorcycle Industries,Gujranwala. |King Hero KH – 70 |10,000 Units per annum | Co mpetitive Positions | | | | | |Model |2008/9 |2009/10 |2010/11 |2011/12 | | |19% |15. 6% |13. 1% |5% | |YAMAHA | | | | | | |4% |2. 7% |2. 5% |1% | |SUZUKI | | | | | | |7% |18. 8% |30. % |30% | |CHINESE | | | | | | |100% |100% |100% |100% | |TOTAL | | | | | KEY SUCCESS FACTORS 1. Quality The major success factor in the Motorcycle industry is of providing quality products at premium prices. The leading motorcycle manufacturers use the latest technology and hence provide products that are very effective and give bikes more resistance against attacks from harmful natural deterioration. The overall motorcycle industry is ISO 9000 CERTIFIED which further provides quality assurance of the motorcycle. The industry can be urther portrayed through the Japanese manufacturers’ implementation of the KAIZAN QUALITY principles. 2. Distribution The distribution system serves as an effective key success factor. Every leading manufacturer follows its own distribution structure. This is mainly because the major manufacturers in the industry believe in establishing a strong distribution network that will distinguish them from competitors. The overall industry mostly follows a company to exclusive dealer network. 3. Pricing and Resale Value Pricing serves as a key success factor for the motorcycle industry. This is because majority of the players (Chinese motorbikes manufacturers) charge low prices. The price acts as a main restraint in final purchase of the motorcycle. Chinese motorbikes manufacturers are in the market with low pricing compared to Japanese manufacturers, in order to attain high market share and high sales growth. However, fact should be remembered that whether a customer pays less or more, he wants value for money too; he wants good quality at all levels. In addition, customer especially those from rural areas, also want high resale value for a bike. 4. Brand image The motorcycle industry relies on the important key success factor which is the brand image in the consumers mind. 5. Research Development Continuous research development is undertaken by the major players in the industry. This gives them an edge over other industry players, by providing new and improved products, designed to meet customer needs and choices, at a faster pace. 6. Durability/reliability The motorcycle durability and reliability stands out as the second main key success factor (after resale value) for the rural market. The customers mainly from low income group and rural areas, who will keep bikes for long period, want durability and reliability assurance. A motorcycle should be durable for longer experience. 7. Cheap maintenance There maintenance expenses of the motor cycle industry are not much high. Maintenance costs are cheap and parts are easily available. 8. Discrimination free environment The overall industry follows a positive work force environment and a well adapted discrimination free organizational culture. 9. Strong asset position The motorcycle industry has a very high strong asset position in the market. This lets them easily acquire latest technology upgrades which are necessary to produce newer and better bikes. The motor cycle industry has a strong asset power in case of investments due to high visible growth. 10. Strong fuel economy It is so economical that the almost whole industry claims says that â€Å"in 1 litre you can drive up to 60 km. This way the industry is offering best fuel average as compared to the rising petrol prices. This economical advantage to the customers attracts mostly rural areas and underdeveloped regions having poor infrastructure, which are facing price rise in petrol as a highly essential threat. 11. Drive Comfort This KSF is in relation to the quality of the motorcycle. Industry is offering attractive drive comfort measures which act as a very essential key success factor. It is an important feature for customers who are traveling on long routes (like sales people); they acquire comfortable drive for smoothness in road grip of the bikes. 12. Training programs: Extensive training programs to customers, dealers, mechanics and other important employees. This relates mainly to the awareness increase program in form of training provided to internal employees as well as external customers. The training increase knowledge about the product features, functionality and necessary safety measures/techniques. The training programs have been very successful in improving customer satisfaction and internal motivation of quality assurance of the product of the motorcycle industry. DRIVING FORCES Economic Forces: The current improving economic scenario of Pakistan is acting as a catalyst by further giving acceleration to the currently already booming motorcycle industry. The improving economic scenario especially on the agriculture side is helping the motorcycle manufactures increasing their sales further. The GDP estimated at 3. % in 2009/2010 while good crop expected during the following years is going to give a boost to the motorcycle industry, as its rural sales are growing above 50% and constitute the major percentile of revenue for the moto rcycle industry. The main sources of income for most of the farmers are their crops and good crops means for motorcycle manufacturer’s good motorcycle sales. Therefore, the growth on the production of food crops (which accounts for 65 to 70 percent of the cropped area) and all the major crops of Pakistan which are also exported are going to earn a fairly large amount of foreign exchange. Thus, contributing a foremost part in GDP and GNP and meaning future growth in motorcycle industry. Also, employment in motorcycle industry has increased substantially, as new capacities and suppliers have come on line. Political Forces: Nearly 80-86% of the raw materials required for manufacturing motorcycles in Pakistan are imported, so costs are also exposed to currency fluctuations risk. Any devaluation of the Rupee currency will make the raw materials much more expensive making it unfeasible for the Japanese motorcycle manufacturers to maintain their quality standards. Government policies regarding local manufacturing also affect the whole industry. Local manufacturing is favored by government. Hence the policy has shown better than expected results. Bargaining Power of Customers: The humongous increase in the variety of motorcycles in the recent years is leading to giving the consumers a great amount of choice and it is getting more and more difficult to entice and prevent the consumers from brand switching. Many new features inherent in latest bike models are increasing the customer expectations a great deal for the future. A competitor launching newer models with stress on reduced price for our price-sensitive economy is also proving as a serious threat in the near future. The price is one of the key issues which is faced by the Japanese motorcycle manufacturers. Bargaining Power of Dealers: As the motorcycle variety is increasing so are the dealers bargaining power. Increased profit margin offering by competition is creating pressure on companies to increase their dealer’s profit margin and start paying more attention to their dealer’s demands. Most companies do have exclusive dealer networks all over the country but other dealers who carry the variety off all the motorcycle manufacturers have to be given some attention so that they promote the manufacturers requirements and interest. Technological Forces: New and new features are being added by new motorcycle manufacturers to entice the customers towards them. Existing manufacturers, who need to stay ahead of the game, must have to upgrade their facilities and get state of the art equipment to retain their customers by innovating and giving their motorbikes the edge and value for money. On the other hand, a manufacturer can opt for using cheap technology to sell the final product later at cheaper price (Chinese technology). Environmental Forces: New government laws regarding environment are a great threat for some of the major players of the market in the near future. The government has imposed a ban on motorcycles, which are of 2 stroke and/or 70 CC or less than 100 CC, to travel on highways, sue to environmental pollution concerns. If the ban is stretched to rural and urban areas as well, it would create negative impact on sales of motorcycles of these categories to those segments which use motorbikes as a mode for traveling for a long distance. MAIN ENTRY BARRIERS High Tec Part Import Companies who would want to produce good quality product will have to import of high technology parts is one of the main factors which increases cost. Very high tech parts are mainly imported from Japan but spare parts and raw materials are also being imported from China as well. I mporting Chinese technology will make thing easier for a company in short run because raw material imported from China is of poor quality which will deteriorate the product quality. Many existing companies are importing raw materials from China and producing low quality products. They are selling these products at cheaper prices to attract the market. The price wars which started 4 years ago are one of the main issues going on between the Chinese assemblers/manufactures and the Japanese manufacturers. The Chinese are offering motorcycles at cheaper prices, taking all the price sensitive consumers away. Chinese bikes are still cheaper by at least Rs. 15,000 as compared to their competitors. †¢ Deletion Program enforced by the Government The government is focusing on localization of spare parts through their deletion program to safe guard the interests of the local manufactures and to reduce the price of the motorcycles, to create more jobs and to reduce the dependence on foreign parts for manufacturing and assembling. This is also done to reduce the assembling done by the Chinese manufacturers and turn it around into manufacturing. To further discourage imports of entire motorcycles the government has enforced 90% of the import duty on entire motorcycle (end product) as known as CBU in duty terms. High tech parts imports though are allowed and have a 30% import duty known as CKD in duty terms. (See on next page). †¢ Local Industry Competition: The total no of motorcycle manufacturers and assemblers have risen to 29 in the recent years leading to a very competitive environment and leading an ongoing continuous war for customers. The Chinese especially in the recent years are challenging the Japanese manufacturers by offering motorcycles at cut throat low prices. †¢ Global Competition Uncertainty Another thing to worry for motorcycle manufacturers is that with effect to the WTO Agreement the Pakistani market will become open for Global Competitors and the likely hood of new entrants mainly India entering the Pakistani market will be very trouble some for them. The Indian motorcycle manufacturers have an enormous variety to offer and their motorcycles quality matches that of the Japanese manufacturers while they maintain the same pricing as of china which is very cheap. The Pakistan market constitutes of only 500,000 motor cycles per year while the India market constitutes of nearly 5 million motor cycles per year. the competitive profile matrix Critical Success Factor | | | | | | |Weight | |KEY INTERNAL FACTORS |Weights |Rating |Score | | |   |   | | |STRENGTHS | | | | |Brand name image |0. 075 |4 |0. 3 | |Market leadership – Enjoying 56% share |0. 1 |4 |0. 4 | |Efficient performance |0. 05 |3 |0. 15 | |Durability/Reliability |0. 05 |4 |0. | |Quality – ISO C ertification |0. 025 |3 |0. 075 | |Easy availability of Spare Parts |0. 025 |3 |0. 075 | |Strong asset position/increased profits with each year |0. 05 |3 |0. 15 | |High resale value |0. 05 |4 |0. 2 | |Low maintenance costs |0. 1 |4 |0. 4 | |Technical expertise – Benchmarking Honda, Japan. |0. 05 |4 |0. | |Well established dealer network |0. 075 |4 |0. 3 | | |0. 025 |3 |0. 075 | |State of art plants and equipment | | | | | | | | | |WEAKNESSES | | | | |Less of a proactive approach to different matters, reactive approach applied more |0. 05 |1 |0. 5 | |No Anti-theft device installed in the bike against snatching dilemma prevalent especially in |0. 05 |2 |0. 1 | |Karachi | | | | |Price higher than prevailing competition in market, which gives customer thoughts about nearest |0. 1 |1 |0. 1 | |substitutes available | | | | |No Credit schemes for distributors/dealers as well as for customers |0. 05 |2 |0. | | | | | | |TOTAL |1. 00 | |2. 87 | Analysis: Company is shown to be as inte rnally strong as it has aggregated score of 2. 87 which is above the normal average of 2. 5. Atlas Honda has been the trend setter in the bike industry and it has developed the path on which others have moved on. The strengths of the company comes naturally because of these factors it has been the market leader for a long time and probably since the inception of bike industry in Pakistan. †¢ The name Honda has a strong positioning in the minds of consumers as synonymous to quality and reliability. Buying a Honda is seen as a paying investment, because of its high resale value. †¢ Technical edge over the competitors †¢ Extensive dealer network that enables easy accessibility for sales and service. †¢ Euro 2 emission standards that are a benchmarking the bike industry of Pakistan. †¢ Honda being the market leader has a communication gap with the consumers and it has a reactive approach rather a proactive approach. †¢ High price of the product †¢ No a nti-theft system installed THE MATCHING STAGE SWOT ANALYSIS Strengths Product †¢ Brand name image †¢ Market leadership – Enjoying 56% share †¢ Efficient performance †¢ Durability/Reliability †¢ Quality – ISO Certification †¢ Easy availability of Spare Parts Strong asset position/increased profits with each year †¢ High resale value †¢ Low maintenance costs †¢ Technical expertise – Benchmarking Honda, Japan. Price †¢ Reasonable price of genuine parts †¢ Cheap maintenance Place †¢ Well established dealer network †¢ Accessibility to major towns and cities; improving delivery to nearly all parts of Pakistan Promotion †¢ Successful Promotional campaigns via TV and Newspaper channels enjoying extensive viewer ship People †¢ Management/non-management work as a single unit, as a team †¢ Highly loyal, committed and motivated employees †¢ Hardworking, experienced and qualified staff †¢ Technological and managerial know-how Job evaluation which is totally performance based, gives staff incentive to work harder each time †¢ Bonuses and reward system for employees †¢ Trainings given to dealers, motorcycle mechanics and users Processing †¢ TQM principles practiced in work processes †¢ Kaizen (continuous improvement) principle in all processes †¢ State of art plants and equipment †¢ ISO 9002 certified Physical Environment †¢ Frank and congenial work environment †¢ Positive work climate and organization culture – single code of dress supports to maintain discrimination free work environment Others †¢ Customer loyalty †¢ Old and established brand name †¢ Safety guidance given to customers. Weaknesses Less of a proactive approach to different matters, reactive approach applied more †¢ Price higher than prevailing competition in market, which gives customer thoughts about nearest substitutes available â € ¢ Bike launching new features as those of new entrants in market †¢ From customer point of view, in case brand is unavailable for a long time, high pending level allows customer to switch brand †¢ No Credit schemes for distributors/dealers as well as for customers †¢ Customer conscious of bike as a status symbol refrain from buying available Honda brands. It is considered more of a family bike †¢ No anti-theft device installed in bikes against snatching dilemma prevalent especially in Karachi. Opportunities †¢ Growing motorcycle market – Estimated bikes 850,000 by the end of 2011-12 compared to 7550,000 in 2012-13 †¢ Improving economic scenario of Pakistan by contributing more through increased selling. Growth in agriculture sector with good crop expected next year. Customers realizing quality matters, as problems are already cropping up in new entrants models †¢ Initiatives and proposals in process for coping with increased demand of bi kes †¢ Newer segments introduced with entry of new models, design, which still have huge potential for growth †¢ Karachi, a city which has tremendous potential for growth and profitability. †¢ New Export Markets like India with annual market size of 50 million units opening due to WTO Agreement. Threats †¢ Many new features inherent in latest bike models increasing customer expectations a great deal for the future †¢ WTO (World trade Order) opening local markets for global competition †¢ Competitors launching newer models with stress on reduced price for our price-sensitive economy proving serious threat in near future †¢ Theft and snatching of bikes increasing, reaching around more than 2000 bikes in 2012. SWOT MATRIX |STRENGTHS | WEAKNESSES | | | | | | |Product | | | |Brand name image |Less of a proactive approach to | | |Market leadership – Enjoying 56% share |different matters, reactive approach | | |Efficient performance |applied more | | |Durability/Reliability |Price higher than prevailing | | |Quality – ISO Certification |competition in market, which gives | |Easy availability of Spare Parts |customer thoughts about nearest | | |Strong asset position/increased profits with |substitutes available | | |each year |Bike launching new features as those | | |High resale value |of new entrants in market | | |Low maintenance costs |From customer point of view, in case | | |Technical expertise – Benchmarking Honda, |brand is unavailable for a long time, | | |Japan. high pending level allows customer to | | | |switch brand | | |Price |No Credit schemes for | | |Reasonable price of genuine parts |distributors/dealers as well as for | | |Cheap maintenance |customers | | | |Customer conscious of bike as a status| | |Place |symbol refrain from buying available | | |Well established dealer network |Honda brands. It is considered more of| | |Accessibility to major towns and cities; |a family bike | | |improving delivery to nearly all parts of |No anti-theft device installed in | | |Pakistan |bikes against snatching dilemma | | | |prevalent especially in Karachi. | | |Promotion | | | |Successful Promotional campaigns via TV and | | |Newspaper channels enjoying extensive viewer | | | |ship | | | | | | | |People | | | |Management/non-management work as a single | | | |unit, as a team | | | |Highly loyal, committed and motivated employees| | | |Hardworking, experienced and qualified staff | | | |Technological and managerial know-how | | | |Job evaluation which is totally performance | | | |based, gives staff incentive to work harder | | | |each time | | | |Bonuses and reward system for employees | | | |Trainings given to dealers, motorcycle | | | |mechanics and users | | | | | | | |Processing | | | |TQM principles practiced in work processes | | | |Kaizen (continuous improvement) principle in | | | |all processes | | | State of art plants and equipment | | | |ISO 9002 certified | | | | | | | |Physical Environment | | | |Frank and congenial work environment | | | |Positive work climate and organization culture | | | |– single code of dress supports to maintain | | | |discrimination free work environment | | | | | | | | | | | |Others | | | |Customer loyalty | | | |Old and established brand name | | | |Safety guidance given to customers | | |OPPORTUNITIES | SO Strategies | WO Strategies | | |S1, S30, O7 |W7,O6 | |Growing motorcycle market – Estimated bikes |Offer motorcycles to huge new market openings |Provide some safety devices installed | |850,000 by the end of 2008-09 compared to |like India. Reaching out untapped markets as |in bikes especially in Karachi to | |750,000 in 2007-08 |well) |increase sales and decrease fear of | |Improving economic scenario of Pakistan by | |snatching. | |contributing more through increased selling. |S5,S8,S9,S10,O3 |W5,O1 | |G rowth in agriculture sector with good crop |Provide customers high quality bikes with low |Create company operated credit sales | |expected next year. |quality maintenance cost as well. Take |schemes and close the gap by offering | |Customers realizing quality matters, as |advantage of the technical expertise that |credit to those huge segments which | |problems are already cropping up in new |Honda possesses. |thrive on credit consumers. |entrants models | | | |Initiatives and proposals in process for |S10,S24,S25,O5 |W3,W6,O5 | |coping with increased demand of bikes |Targeting new segments with new motorcycle |Launch new innovative designs for new | |Newer segments introduced with entry of new |models with respect to the technical |growing segments which suggest that | |models, design, which still have huge |expertise, state of the art manufacturing |Honda is not only a family bike but | |potential for growth |facility to come up with innovative models and|its products are also po sitioned for | |Karachi, a city which has tremendous |using continuous improvement to stay ahead of |other segments like sports and | |potential for growth and profitability. |the competitors. |recreation. |New Export Markets like India which has an | |W4,O4 | |annual market size of 50 million motorcycles | |Increase production capacity to meet | |per annum opening due to WTO Agreement. | |excessive demand and decrease delivery| | | |lead time. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | THREATS |ST Strategies | | | | |W2,T3 | |Many new features inherent in latest bike |S10, S25,T1 |Increase investment in high technology| |models increasing customer expectations a | |equipment to increase localization to | |great deal for the future |Used the technical expertise and state of art |further decrease costs and target | |WTO (World trade Order) opening local markets|equipment that Honda possesses to provide new |price sensitive consumers. | |for global compe tition. |innovative features in upcoming new bike | | |Competitors launching newer models with |models. W7,T4 | |stress on reduced price for our | |Installation of some anti-theft device| |price-sensitive economy proving serious | |to decrease fear of snatching of bikes| |threat in near future |S19,S30,T2 |and to increase sales in major problem| |Theft and snatching of bikes increasing, |Use the technological know how and the |cities like Karachi. | |reaching around 2000 bikes in 2007. |established Brand Image that Honda possess to | | | |compete in the International markets after WTO| | | |opens foreign markets for Honda. | | | | | | |S10,S25,T3 | | | |Utilize the technical expertise and state of | | | |the art equipment that Honda possesses to | | | |introduce newer low priced motor bikes in the | | | |future. | | THE SPACE MATRIX INTERNAL STRATEGIC POSITION |EXTERNAL STRATEGIC POSITION | |Financial Strength (FS) |Environmental Stability (ES) | |Return on Investment +4 | | |Levera ge +3 |Technological change -3 | |Liquidity +3 |Rate of Inflation -4 | |Working Capital +3 |Demand Variability -2 | |Cash flows +3 |Price range of competing products -2 | | |Barriers to entry into market -4 | | |Competitive pressure -2 | |FS Average +2. 8 |Ease of Exit from the market -2 | | |Price Elasticity of demand -2 | | |Risk involved in business -2 | | | | | |ES Average -2. | |Competitive Advantage (CA) |Industry Strength (IS) | |Market Share -1 | | |Product Quality -1 |Growth Potential +2 | |Product Life Cycle -2 |Profit Potential +4 | |Customer Loyalty -2 |Financial Stability +4 | |Technological Know how -1 |Technological know how +3 | |Control over suppliers and distributors |Resource Utilization +4 | |-2 |Ease of Entry into New Markets +3 | |Resale Value -2 |Productivity, capacity utilization +4 | |Brand Name/Image -1 | | |Dealer Network -2 | | |CA Average -1. 60 | | | |IS Average +3. 42 | [pic] ANALYSIS: As we can see from the SPACE Matrix that Atlas Honda is located in the Aggressive Quadrant I. Atlas Honda is financially strong (+2. 8) as compared to its other competitors in the industry and also has a good competitive advantage (-1. 0). Atlas Honda is in an excellent position to use its internal strengths. Atlas Honda is taking full advantage of external opportunities and overcoming internal weaknesses and avoiding external threats. STRATEGIES: The following are the strategies which Atlas Honda should pursue seeing the results of Grand Strategy Matrix (GSM) : †¢ Market Penetration and Market Development It can do Market Development by introducing its products in new geographic areas like parts of Balochistan and NWFP. Not only this it can also launch its bikes in countries like Afghanistan, Sri Lanka, India and Bangladesh where there is a huge market potential for its bikes. Market Penetration can also be done to increase its market share in present markets by increased marketing efforts and concentrating on aggressive advertising to communicate the real value of the product to the consumer. †¢ Product Development Atlas Honda can improve its quality of the products by Product Development and bringing in new efficient and high performance bikes which are environment friendly also. This can be done through Product Research and Testing and TQM practices including Continuous Improvement, JIT, and KAIZEN etc. †¢ Horizontal Integration Horizontal Integration can also be done by acquiring its competitors: Pak Suzuki and Dawood Yamaha THE BOSTON CONSULTING GROUP MATRIX Market Share High Low Stars |Problem child | | | | | | | | | | |Cash cows |Dogs | |[pic] |[pic] | | | | High Market growth Rate Low THE BOSTON CONSULTING GROUP MATRIX Market Share High Low Stars |Problem child | |CD 70 |CD 100 | |[pic] | | |Cash cows |Dogs | |[pic] |[pic] | |CG 125 | | H igh Market growth Rate Low GRAND STRATEGY MATRIX | | | |Rapid Market Growth | | | | | | | | | | |Quadrant I | | | | | | |Quadrant II | | | | | |1. Market Development | | | | | | | | | |2. Market Penetration | | | | | | | | | | |3. Product Development | | |Weak | | | | | | |Strong |4. Horizontal Integration | | |Competitive | | | | |Atlas Honda | |Competitive |5. Concentric Diversification | | |Position | | | | | | |Position | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quadrant III | |Quadrant IV | | | | | | | | | | | | | | | | |Slow Market Growth | | | | | ANALYSIS: Atlas Honda falls in Quadrant I since it has a strong competitive position through its brand image and its high resale value and efficient performance. Currently, Atlas Honda is doing fairly well in terms of their competitors. Initially their market share and competitiveness was very high but the emergence of competition they have lost some share. But overall they have placed them selves well. It can do Market Development by introducing its products in new geographic areas like parts of Balochistan and NWFP. Not only this it can also launch its bikes in countries like Afghanistan, Sri Lanka, India and Bangladesh where there is a huge market potential for its bikes. Market Penetration can also be done to increase its market share in present markets by increased marketing efforts and concentrating on aggressive advertising to communicate the real value of the product to the consumer. Atlas Honda can improve its quality of the products by Product Development and bringing in new efficient and high performance bikes which are environment friendly also. This can be done through Product Research and Testing and TQM practices including Continuous Improvement, JIT, and KAIZEN etc. Horizontal Integration can also be done by acquiring its competitors: Pak Suzuki and Dawood Yamaha. Concentric or Related Diversification can be also done by entering into the Tire business. THE QSPM MATRIX QSPM | |Strategic Alternatives | |Key factors |Weight | |*Strategy 1: Product Development, seeking increased sales by developing new low cost efficient products – Motorcycles for the uncatered/lower| | |segment | | | | | |*Strategy 2: Related Diversification by enter ing into the Tire business | | | | | ANALYSIS: From the QSPM Matrix, it is found that the relative attractiveness of Strategy 1: Product Development is clearly more than that of Strategy 2: Related Diversification. STRATEGY 1 Product Development, seeking increased sales by developing new low cost and efficient products – motorcycles for the uncatered/lower segment is the alternative strategy which Atlas Honda must pursue. Atlas Honda with its technical expertise should develop low cost and efficient motorcycles so that the lower segment of the market can also be tapped which the Chinese and local manufacturers are already targeting. The average price of Atlas Honda’s CD 70 cc bike is Rs. 62,900 as compared to the Chinese/local clone of CD 70 which is around Rs 35000 – Rs 39000. Therefore, Atlas Honda can develop low cost bikes with more efficient engine so that a large untapped lower segment can be catered also. STRATEGIC IMPLEMENTATION STRATEGY IMPLEMENTATION Strategy implementation is the most important area of the whole strategic management process. 99% of the strategies fail at the implementation stage. Just being able to devise bold new strategies to outperform the competitors is not enough. The strategic vision has to be translated into concrete steps the internal processes and management system have to be aligned accordingly. Implementing and executing strategy entails converting the organization’s strategic plan into action and then into results. Putting a strategy into place and getting the organization to execute it well call for different sets of managerial skills. Implementing strategy is primarily an operations driven activity revolving around the management people and business processes. Executing strategy is action-oriented, make-things-happen task that tests a manager’s ability to direct organizational change, motivate people, develop core competencies, build valuable organizational capabilities, achieve continuous improvement in business processes, create a strategy supportive corporate culture, and meet or beat performance targets. Keeping our strategy of following focused differentiation, the most recommended strategy appeared is of market development through opening of various outlets in different geographical regions, can be implemented through following ways: Components of Strategy Implementation Atlas Honda should take into consideration the below discussed components in implementing the strategy: †¢ Building an organization with Competencies, Capabilities and Resource strengths to carry out the strategy successfully: Atlas Honda expertise as leading local two wheeler manufacturer as its strength that a company is fairly good at doing and that enhances its competitiveness. The phenomenal success of Atlas Honda Corp. is the result of a corporate culture that connects its geographically scattered retailers and distributors together. Ever since its Atlas Honda promoting a culture that is grounded on its vision statement, which emphasizes quality, service, convenience and value.. The company makes sure that its proven system is maintained by conducting a constant review of the performance of its bikes. Atlas Honda has a wide distribution and supply chain network, through which Atlas Honda is capable to maintain its policies and culture. The company can articulate at by translating the corporate culture into the administrating activities. Although Atlas Honda has pool of talented, fresh and young workforce, yet they lack energy and risk taking capabilities. Therefore, Atlas Honda should provide proper training to it workforce consistent to its lively and energetic culture. †¢ Developing Budgets to steer ample resources into those value chain activities critical to strategic success New strategies require significant budgets. Though being a local company that has a very good and efficient supply chain Atlas Honda implements strategies bringing higher initial costs to the company. In order to implement new strategies such as product development, market development or market penetration, Atlas Honda will need to increase its budget. The market development strategy would subsequently increase their distribution costs and also the product development would mean buying colour, design and engine additionally increase the supplier costs.. †¢ Establishing strategy supportive policies and procedures Atlas Honda needs to stabilize its strategy in two important areas of concern i. e. product development and market development. Firstly, Atlas Honda need to expand its budget for its marketing and promotional activities, by not just promoting few of it products at an interval basis to the set of products marketed to the masses as Atlas Honda is market leader and to maintain its leadership, Atlas Honda must spend on promotion. †¢ Instituting best practices and pushing for continuous improvement in how value chain activities are performed Atlas Honda can improve on its value chain activities by implementing the strategy of backward integration which would help Atlas Honda drive the costs out of the value chain. Atlas Honda can do so by initiating setup of manufacturing its own spare parts in this way Atlas Honda would not require to import the spare parts from China or I will not need vendor to do the same work.