Background to the SituationThorr Motorcycles is a company that produces 200,000 motorcycles per year. It also licenses T-shirts, shoes, leather goods, toys and other consumer items. The company currently has a high brand image by producing high-end motorcycles and has around forty percent of the market share. The challenge for Thorr is that the industry is growing, but sales of its high-end products are declining. The reason for this loss of market share is that the target customers of its high-end product are aging and younger people do not identify with the Thorr brand image. Additionally, Thorr is an upscale product and younger people don't have the large disposable income needed to support the brand. Recommended Solutions, Rationale, and Results The first step in the simulation is to determine the market position of Cruiser Thorr using a perceptual map. There are four parameters that need to be selected in the simulation and I have chosen Lifestyle Image, Product Design and Style, Price and Product Uniqueness. According to the simulation, “A large polygon represents a large market share.” Apparently, the size of the polygon is irrelevant because the most accurate choices were about lifestyle image, service offering, engineering quality and price. My logic is that the larger the polygon, the greater the market share. The logic according to the simulation is that service is a way to keep loyal customers happy and that quality engineering is a necessity for a motorcycle product. The simulation apparently occurs in a vacuum for the first sequence. First, “Price” is not a critical factor in a true oligopolistic market. In a true oligopoly, firms use factors other than price to generate… half the paper… users began offering leasing options that again shortened the product life cycle by several years in the late 1980s and early nineties. I think Thorr's simulation could have a better execution. First, in the first phase the simulation provides contradictory advice. The simulation tells the user that a larger polygon means a larger market share; however, the largest polygon is not the optimal result. Second, “Price” is not a critical factor in a true oligopolistic market. In a true oligopoly, firms use factors other than price to generate higher revenues and market share. Third, customers can read the numbers, so the survey results are directly related to the perceptual texture rather than trying to interpret the numbers. Finally, the company could have significantly shortened the product life cycle by introducing leasing options instead of better financing.