Business Expansion in Automotive and Motorcycle Industries

The Key Subject

The purpose of this report is to discuss the possibility of business expansion from the perspective of assessing and comparing development prospects in two target spheres: the automotive and motorcycle industries. To perform a comprehensive analysis, relevant data on the current situation in both areas will be reviewed, and investment opportunities will be evaluated in relation to the potential enhancement of the sphere of influence. A diversification strategy will be discussed and based on the available facts and visuals, appropriate recommendations will be given.

Diversification Decision

A diversification strategy can be a convenient form of business expansion given the specifics of the two industries in question. As seen in Figure 1, diesel light truck sales accounted for a negligible percentage of sales last year, while vehicles with internal combustion engines were in demand. After the peak of the second wave of the COVID-19 pandemic, the share of motorcycle sales may increase since these vehicles have always been recognized due to their rich and respected history. Therefore, expanding the business through diversification is a potentially profitable solution.

The Current Situation in the Automotive Industry

Today, specific trends are being observed in the automotive industry. Judging by Figure 2, salespeople in the west do their job more successfully since, in this region of the country, the number of sales exceeds the nearest figure from Texas by almost twice. Closer to the east of the United States, the percentage of sales falls, and this factor should be taken into account. In terms of motor types, alternative models powered by electricity or hybrid type are gaining popularity, as seen in Figure 4. The drive for innovation and development can be leveraged in the context of expanding the organization’s current business.

The estimate of the US motorcycle sales proves that, despite fewer acquisitions compared to automobiles, this market share is large. The situation in the west is similar to that in car sales because the number of buyers is higher, as shown in Figure 4. Based on the data in Figure 5, the COVID-19 pandemic has impacted motorcycle sales negatively. Nonetheless, the statistics show that sales are increasing, and choosing this industry as the target one may be a profitable decision.

The Likelihood of Success

The likelihood of the success of business expansion by covering the motorcycle industry is possible due to several factors. Firstly, accurate statistics allow forecasting consumer demand and sales dynamics, including the information by region. Secondly, the contiguity of both industries makes it possible to apply similar principles of promotion and interaction with partners. Thirdly, motorcycle vehicles have a consistent target audience, and despite a lower share of sales compared to cars, the organization can ensure stable demand based on the current market preferences.

The organization’s business expansion and focus on the motorcycle industry can have an impact on internal and external stakeholders. For instance, potential investors can plan the share of investments in the business and estimate the number of budget funds based on the current indicators of the industry in question. The profitability of working in this area may be compared to that in the automotive sphere due to the available performance metrics. Comparing the target markets is a valuable exercise in highlighting the specific strengths and weaknesses of the anticipated business development spectrum and identifying potential growth.

For the organization, focusing on the new industry can be a valuable factor in enabling new financial and productivity opportunities to be realized. The use of effective and proven development strategies is a convenient tool for building sustainable demand and the interest of the target audience. New partnerships with foreign suppliers are a valuable factor in expanding entrepreneurial opportunities and reaching new levels of sales. The customer preference data presented in Figure 7 can be utilized usefully as a basis for determining the strategic direction of the business. Finally, entering the new industry is a mechanism to increase customer loyalty and market credibility.

Recommendations for Moving Forward

To promote the business in a new industry successfully, a number of factors need to be taken into account. The analysis of the current market preferences and assessment of the prospects for interaction with partners are prerequisites. In addition, sales shares should be evaluated on the basis of today’s performance rather than possible and optimal parameters. Finding an adequate decision-making strategy can help avoid operational and planning risks. For this purpose, the Rational Model is the most convenient tool due to the objective assessment of development perspectives.

The analysis of the considered data proves that the diversification decision is logical and may contribute to capitalizing on the organization’s profits by expanding the sphere of influence. Internal and external stakeholders can assess the positive prospects for such development, and the organization can improve its market position due to operating in the motorcycle industry. The likelihood of success is determined by several criteria, including opportunities to promote the business in a similar scenario and utilize the current sales data as a rationale for specific steps.


The assessment of the development of the automotive and motorcycle industries makes it possible to assess the possibility of focusing on the motorcycle industry as a likely direction for the organization’s business expansion. The diversification strategy is due to the possibility of increasing the company’s market credibility, and the current sales figures assume the likelihood of development. To evaluate specific steps, the Rational Model needs to be applied to ensure a smooth decision-making process.


Breakdown of light vehicle sales in the U.S. in 2019, by fuel type. (2020). Statista. Web.

Market share of major motorcycle brands in the U.S. as of March 2020, based on unit sales. (2020). Statista. Web.

Motorcycle, bike & parts manufacturing in the US – Market size 2003-2026. (2020). IBISWorld. Web.

Richter, W. (2017). Harley-Davidson spirals down, announces US layoffs, builds factory in Thailand. Wolf Street. Web.

U.S. automobile registrations in 2018, by state. (2019). Statista. Web.

U.S. motorcycle market size, share & trends analysis report by product (motorbike, scooter, mopeds), competitive landscape, and segment forecasts, 2018-2025. (2018). Grand View Research. Web.

U.S. motorcycle registration estimates in 2019, by state (in units)*. (2020). Statista. Web.

U.S. vehicle sales dashboard. (2020). Diesel Technology Forum. Web.

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BusinessEssay. "Business Expansion in Automotive and Motorcycle Industries." December 8, 2022.