Name: Sumaya Mohamed hilowle

Class: BIT26-A
Assignment: case study chapter 2
Answers
1. Enduro 250, Enduro 550, Moto 300, and Moto 450 are the four product models that Dirt Bikes
produces. All four models include cutting-edge technology, including steering stabilizers, liquid
cooling, and both electric and kick starters.

The sales of the 4 product models are shown in the table below from 2010 to 2014. The Enduro 550
from Dirt Bikes has the best performance, while the Moto 450 has the poorest, per the table.

Models Sales
Endure 250 9,662
Endure 550 17,606
Moto 300 11,383
Moto 450 3,318

10 9191.55 8.4
2011 91.45 8.6
2012 90.06 9.9
2013 90.91 9.1
2014 91.80
10 9191.55 8.4
2011 91.45 8.6
2012 90.06 9.9
2013 90.91 9.1
2014 91.80
Year Domestic sales % International sales %
2010 9191.55 8.4
2011 91.45 8.6
2012 90.6 9.9
2013 90.91 9.1
2014 91.80 8.2

There may be potential for Dirt Bikes to increase its foreign sales as the percentage of total sales that
are made outside of the United States has not increased much. We can infer from the table that
overseas sales are increasing relative to domestic sales. As the percentage of domestic sales declines,
the percentage of overseas sales will rise. The increase in domestic sales percentages, however, resulted
in a decline in the percentage of overseas sales.

2.

Year sales % Gross margin %

2012 61, 529 -
2013 60, 063 4.12
2014 60, 144 6.12
In summary, from $ 41,042 in 2012 to $ 45,835 in 2014, the cost of goods sold increased. an increase in
the 11.60% of the cost of products sold that is in percentage terms. However, the revenue (sales)
likewise increased from $ 61,529 in 2012 to $ 64,063 in 2013, increasing by about $ 2,534 (4.12%), but
decreased by around -6.12% from $ 64,063 in 2013 to $ 60,144 in 2014.

The company's gross margin also experienced a minor reduction from 33.25% (year 2012) to 32.64%
(year 2013), and it continued to erode through 2014, falling to roughly 23.79%. In addition, the net
margin for Dirt Bikes decreases from 15.03% in 2013 to 11.41% in 2014 and then further drops to 2.4%
in 2014. Between the years of 2012 and 2014, the company's gross margin and net margin both
decreased by around 9.46% and 12.63%, respectively. Additionally, the total operational costs for dirt
bikes (which cover spending for sales and marketing, engineering, and maintenance) and

Product development and general and administrative costs climbed by 18.96% from $ 7,675 in 2012 to $
9,130 in 2013, and they continued to rise the following year, rising by around 7.2% from $ 9,130 in 2003
to $9,787 in 2014. This situation suggests that the company must deal with a gradual rise in operating
costs.

The company is also not overly indebted. It is noteworthy that Dirt Bikes has sufficient assets to cover
costs and finance the creation of new products and information systems. According to the summary
balance sheet statistics for Dirt Bikes from 2012 to 2014, there are more current assets than current
liabilities. Thus, it is determined that it has sufficient operating capital to finance expenditures in new
machinery, information systems, and product advancements.
Assignment: case study chapter 3
Answers
1. What activities at Dirt Bikes create the most value?

The most beneficial activities are inbound (primarily supply chain management but also including
locating appropriate, high quality parts anywhere in the world) activities, manufacturing (which
primarily assembles the appropriate materials from elsewhere but also includes testing each
product as it comes off the assembly line), marketing (including some advertising, its racing
commitment and accompanying publicity, coverage in appropriate journals, and an online
presence), manufacturing, and manufacturing (again, support for its dealers, plus availability of parts
and service information for owners who are too far away from dealers).

2. How does Dirt Bikes provide value to its customers?

The quality of the bikes, their off-road and racing capabilities, useful user groups, and readily available
servicing are what provide Dirt Bikes' customers value.

3. What other companies are Dirt Bikes’ major competitors? How do their products compare in
price to those of Dirt Bikes? What are some of the product features they emphasize?

The Enduro 250 sells for $3250, the Enduro 550 for $7600, the Moto 300 for $4295 and the Moto 450
for $8995 are the different types and costs of dirt bikes. ATK USA is becoming well-known and has had
success in its racing endeavors. It draws attention to its racing heritage and the owner organizations it
backs. It also highlights its speciality bikes, including ones made for law enforcement. It is highly
competitive in racing and has a reputation for innovation. It costs between $4,995 and $5,695 for the
two-stroke Enduro model and $3,295 for the four-stroke version. Other models cost more than $8,000.
It would be an immediate rival to dirt bikes.

Japanese companies Honda and Kawasaki are the main international rivals. Yamaha and Suzuki. Honda is
a significant manufacturer of motorcycles, notably motocross and off-road dirt bikes, in Japan. Its
motocross and off-road motorcycles have prices ranging from roughly $1,200 (for kids' off-road bikes) to
$6500. Despite the fact that Dirt Bikes products are being advertised and sold as American, it is a serious
rival in terms of pricing and the variety of models available. Honda's ability to compete with Dirt Bikes in
terms of style and performance is up for debate. Another significant Japanese rival is the off-road and
motocross bike manufacturer Kawasaki. Price ranges for its motocross minibikes range from $2,300 (for
young novices) to roughly $5,000.

On price and the variety of models available to Dirt Bikes. If Dirt Bikes does not continue to highlight its
American brand name, styling, and quality, it would become an even more significant competitor. The
pricing range for Yamaha off-road bikes is $2900 to $6400 for motocross and $1200 to $6500 for off-
road bikes. Suzuki dual sport/dirt models cost between $1700 and $5000, while the company's
motocross bikes cost between $2300 and $6000. Both businesses would be Dirt Bikes' main pricing
rivals. Although Husqvarna is a producer of dirt bikes in Europe, the American market has not seen much
of an influence from them. It wouldn't be a serious rival for people looking to buy American goods.
 4. What are the competitive forces that can affect the industry?

The market for dirt bikes could be negatively impacted by shifting economic and demographic trends,
which would increase the focus on price competition. The number of young people who buy dirt bikes in
Japan, the USA, and Europe is falling (although many baby-boomers and retirees are flocking to Harley
Davidson and other brands for highway cruising.) Since there are already numerous rivals and a small
global market for dirt bikes, new market entrants are unlikely to pose a threat to Dirt Bikes. Utilizing the
Internet to find suppliers internationally could aid Dirt Bikes in controlling its supplier prices.

5. What competitive strategy should Dirt Bikes pursue?

The responses given by students to this query will vary. Like any motorcycle producers, Dirt Bikes will
make an effort to keep costs down, but it is obvious that it is not a low-cost manufacturer. But it is a
business that places a premium on the distinction and excellence of its goods. It might do more by
concentrating on a certain market niche through improved marketing, client interaction, and usage of
Web and demographic data.

6. What information systems best support that strategy?

Computer-aided design systems, systems for promoting quality, customer relationship management
systems, and other systems for marketing and customer service would be appropriate if students think
Dirt Bikes could benefit from a strategy emphasizing product differentiation and finely-tuned marketing
to target dirt bike enthusiasts.