Read the following case study carefully and then answer the questions that follow:

Harley$-$Davidson Inc. is discontinuing sales and manufacturing operations in India as part

of its company$-$wide restructuring. India hasn$$t been an easy market for Harley, where it

sells a few thousand bikes. The company operates a $$complete knock$-$down$$ assembly

plant, where components and parts are imported from U$.$S$.$ and assembled into motorcycles.

Finding the price sweet spot and gaining traction in India, even with models made for the

market with smaller engines, has been difficult. Discounts sometimes help; at other times,

they turn off buyers. Duties and taxes haven$$t been lowered to keep pace, while ownership

costs and road taxes have increased. State levies make up $50\%$ of a vehicle$$s on$-$road price.

Many large domestic manufacturers though are exporting a significant proportion of their

overall production.

Recently, an announcement was made after around a month of Harley$-$Davidson exit. $$As

per a distribution agreement, Hero Moto Corp will sell and service Harley$-$Davidson

motorcycles, and sell parts & accessories and general merchandise riding gear and apparel

through a network of brand$-$exclusive Harley$-$Davidson dealers and Hero$$s existing

dealership network in India,$$ Hero Moto Corp said in a statement. Some industry experts

are considering it as an apt strategy for Harley$-$Davidson and Hero Motor Corp.

a$.$ State any five likely reasons that led to Harley discontinuing its sales & manufacturing in

India. Examine the stated reasons critically by providing suitable arguments. $(5$ Marks$)$

b$.$ Discuss the type of strategic alliance between Harley$-$Davidson with Hero Motor Corp.

Provide your arguments if this alliance can be beneficial for both the companies