Since these items realize high profits and strengthen customer relations and customer loyalty, this area is providing an opportunity for companies. To succeed here, firms provide a wide product line, of stylish items, and aggressively advertise/market them. Financing Services: As prices of motorcycles increased well above the reach of many motorcycle enthusiasts, manufacturers begun to set up consumer credit arrangements falling into 3 categories consumer, dealer, and corporate financing. Financing services are vital for success in the industry and firms unable to provide them will lose market share. To succeed here, firms are to provide a wide variety of flexible (in terms of maturity and payment arrangements) plans. MARKETS Although motorcycles are sold internationally, 3 main geographic markets comprise the bulk of motorcycle sales North America, Asia, and Europe. The largest is the North American Market (USA and Canada account for about 60% of this market) accounting for 60% of worldwide motorcycle sales. With the baby generation aging, opportunities exist for the penetration of new markets. The Japanese market accounting for a great chunk of the Asian Market is an untapped one for foreign manufacturers. Government regulations and trade policies make it difficult for foreign manufacturers to enter though. Most Asians consider motorcycles as a basic means of transportation. Major target areas include China, Korea, Taiwan and Vietnam. The European Market is another market with great potentials since Europeans have a higher disposable income and enjoy a higher standard of living. Eastern Europe is not offering a good deal mainly because of its unstable political and economic environment. To succeed in these markets, firms are to modify products to meet local needs, provide after sales service, expand distribution networks, create strong customer COMPETITION Competition in the motorcycle industry consists of only a handful of producers worldwide.