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Brand loyalty created by big motorcycle companies make it difficult and expensive to enter market with a new product, because new entrants will have to make efforts to establish brand loyalty and distribution channels for their products, and advertisement cost can be costly. Since high manufacturing cost is required to manufacture motorcycles, new entrants have to have large amount of capital to compete with companies already in the industry with high capacity to make products.
Real Threat of Substitute Products
The threat of substitute products is medium. There are several things that people could buy or use instead of motorcycles, such as cars, bicycles, and public transportations such as bus, train, and taxi; however, most people who enjoy motorcycle civilities enjoy themselves because of the unique characteristics of motorcycle that they cannot get from other thing such as openness nature of motorcycles...
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