Dirt Bike USA

Dirt Bike USA



Dirt Bike USA

Introduction

The study is related to the Dirt Bike USA Company, the Dirt Bike USA maintains a very friendly family atmosphere, encouraging teamwork, attention to detail and quality, and continual learning and innovation. Employees, distributors, and retail customers are urged to contribute ideas on how to improve Dirt Bikes' products and service. Moreover, when examining Dirt Bikes' income statement and balance sheet data, it can be observed that the company's three-year trends in revenue or the sales, costs of goods sold, gross margins, operating expenses, and net income or loss is competitive according the industry. In addition, the company's short and long-term liabilities are growing and whether they exceed over the value of the assets. The Dirt Bike USA Company have also opportunities in terms of capital to fund investments in new equipment or information systems due to the more current assets than current liabilities, which reflects that Dirt Bike USA Company is effectively and efficiently managing its organizational activities.

Discussion

Competitive Forces Model

Porter's five force industry competitions for the Dirt Bike USA include the threat of new entrants, the bargaining power of suppliers, the degree of rivalry among competitors in the same industry, the bargaining power of buyers and the threats of substitute's products. Moreover, the competitive forces model argues that the stronger these forces are within an industrial setting the more limited companies raise prices and earn greater profits. As far as this is concerned a strong competitive force can be regarded as a threat because it would drastically reduce the profit of an organization. (Laudon and Kenneth, 2009)

Threat of Substitute Product

Firms within the same industrial like Dirt Bike USA are competing amongst themselves. Substitute's limits potential returns on an industry by placing a ceiling on the prices companies charge. The risk of substitute product ...