Victory Motorcycles
Victory Motorcycle
“Victory Motorcycles is a motorcycle manufacturer based in Spirit Lake, Iowa, United States, which began production of its vehicles in 1998. Its parent company, Polaris Industries, created the firm following the modern success of Harley-Davidson. Victory’s motorcycles are designed to compete directly with Harley Davidson and similar American-style motorcycle brands, with V-twin engines and touring, sport-touring, and cruiser configurations. The first Victory, the V92C, was announced in 1997 and began selling in 1998. Victory has been modestly profitable since 2002.”
Strategic Thinking The decision for Polaris to diversify its operations into motorcycle production by creating the Victory Motorcycle brand was founded in the Resource Based View (RBV) of strategic thinking. The company’s idea for diversification was sound; however, their understanding of the market dynamics and market geography may have been limited. In 1993, when Polaris’ General Manager for New Products, Matt Parks, noticed that the wait time between the ordering and delivery of a Harley-Davidson was lengthy, he realized that there was an opportunity available for Polaris. The opportunity was not without risk though as Harley commanded much of the market share due to its brand name recognition and the fact that it was virtually the only American-made motorcycle available for purchase. Parks and his associate, Bob Nygaard, Polaris’ Snowmobile, Division General Manager, realized that the barriers to enter this market and take advantage of Harley being at the limits of its production capacity would be high. Some of these barriers included adequate production facilities, design capability, and distribution, all of which existed and were under-utilized Polaris resources. In addition, start-up costs were expected to be high. At the core of Polaris’ strengths were its strong manufacturing capabilities. In 1954, Polaris Industries began by producing snowmobiles. They built
“Victory Motorcycles is a motorcycle manufacturer based in Spirit Lake, Iowa, United States, which began production of its vehicles in 1998. Its parent company, Polaris Industries, created the firm following the modern success of Harley-Davidson. Victory’s motorcycles are designed to compete directly with Harley Davidson and similar American-style motorcycle brands, with V-twin engines and touring, sport-touring, and cruiser configurations. The first Victory, the V92C, was announced in 1997 and began selling in 1998. Victory has been modestly profitable since 2002.”
Strategic Thinking The decision for Polaris to diversify its operations into motorcycle production by creating the Victory Motorcycle brand was founded in the Resource Based View (RBV) of strategic thinking. The company’s idea for diversification was sound; however, their understanding of the market dynamics and market geography may have been limited. In 1993, when Polaris’ General Manager for New Products, Matt Parks, noticed that the wait time between the ordering and delivery of a Harley-Davidson was lengthy, he realized that there was an opportunity available for Polaris. The opportunity was not without risk though as Harley commanded much of the market share due to its brand name recognition and the fact that it was virtually the only American-made motorcycle available for purchase. Parks and his associate, Bob Nygaard, Polaris’ Snowmobile, Division General Manager, realized that the barriers to enter this market and take advantage of Harley being at the limits of its production capacity would be high. Some of these barriers included adequate production facilities, design capability, and distribution, all of which existed and were under-utilized Polaris resources. In addition, start-up costs were expected to be high. At the core of Polaris’ strengths were its strong manufacturing capabilities. In 1954, Polaris Industries began by producing snowmobiles. They built