The most valuable activities include: • inbound activities (primarily supply chain management but also including locating appropriate, high quality parts anywhere in the world)), • manufacturing (which is mostly assembling the proper materials that come from elsewhere, but also include the testing of 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 attractive and helpful Web site), • sales (both ordering systems and systems support for its dealers), and service (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 value Dirt Bikes’ customers receive comes from the quality of the bikes, their offroad and racing performance, effective and valuable user groups, and available servicing when needed
4.What are the competitive forces that can affect the industry? The industry could be affected by changing economic conditions and demographics, which could depress the market for dirt bikes and put more emphasis on competing on the basis of cost. Young populations in Japan, USA, and Europe who make up most of the customers for dirt bikes are declining (although many baby-boomers and retirees are flocking to Harley Davidson and other brands for highway cruising.) The market for dirt bikes worldwide is not very big and there are already many competitors, so Dirt Bikes is not likely to see competition from new entrants into the market. The ability to use the Internet to search worldwide for suppliers could help Dirt Bikes keep its supplier costs in line.