Financial Statements Essay
POLARIS INDUSTRIES AND ARCTIC CAT
Question 1: Describe each business in terms of its market, strategy, business model, or distinctive competence.
History: Polaris Industries and Arctic Cat
Polaris Industries was founded by Edgar Hateen in 1952 in the town of Roseau, Minnesota and introduced the world’s first Snowmobile (at that time called a Sno Traveler) in 1957. In 1962, Polaris officially declared itself the world’s first Snowmobile Company and reported nearly $800,000 in sales. For the next several decades, Polaris would expand greatly in the worldwide production and sales of …show more content…
Today, Arctic Cat is a $600 million dollar business with global operations, although not nearly to the extent of its rival Polaris Industries. Similar to Polaris, Arctic Cat sells its product through independent dealerships in North America, and distributors in the international market. Throughout North America, there are roughly 1000 Arctic Cat independent dealerships.
Market: Polaris Industries and Arctic Cat
The outdoor consumer recreation market is $650 billion market that is continuing to grow at a steady pace both domestically and abroad. While Polaris competes in both off-road (ATV, UTV, Snowmobile) markets and on-road (Motorcycle, Electric Vehicles) markets, Arctic Cat only competes in the off-road market. While there is a very large difference in revenues for both companies, they do compete head to head in the off-road vehicle segment (this is 70% of Polaris revenue) and Snowmobile (this is 11% of Polaris Revenue) often trading top market share positions in the snowmobile market. Both companies market and