Harley Davidson Industry Analysis

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Case 2 Industry Analysis
Harley Davidson/ Heavy Weight Motorcycle Industry

Table of Contents

Mission ………………………………………………………………...3 SWOT Analysis ………………………………………………………..3-7 Sustainable Competitive Advantage …………………………………...7-8 Issues and Problems …………………………………………………....8-9 Strategic Recommendation …………………………………………….9-13 Fallout ………………………………………………………………… 13-15 Conclusion ……………………………………………………………..15 Appendix ……………………………………………………………….16 Refrences ……………………………………………………………….17-18

Executive Summary

In the following paper we discuss the Harley Davidson Corporation and identify two strategic recommendations for their business. In order to get a better understanding of the Harley Davidson Corporation we broke down the company by their strengths, weaknesses, opportunities and threats. We then further analyze and explain Harley’s sustainable competitive advantage, as well as issues and problems the company faces. After going over Harley’s current company situation we use research and statistics to recommend Harley Davidson concentrates more on its international stores and transforms itself into a green corporation. We discuss the advantages and benefits Harley Davidson would obtain based on our recommendations, and also possible problems our recommendations may encounter.

Mission Statement
“We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public
an expanding line of motorcycles and branded products and services in selected market segments.”
Harley Davidson is an American manufacturer of heavy weight motorcycles. The corporation is based out of Milwaukee, Wisconsin and is the largest manufacturer of heavy weight motorcycles in the world. In 2007 Harley Davidson held 49.4% of the market share in the heavyweight motorcycle market with competitors like Honda, Suzuki, and Yamaha trailing far behind. Based on more recent information Harleys sales have slightly declined in the US due to the falling economy, however recently international sales have been growing very quickly. Uniquely from its competitors, Harley Davidson holds an amazingly strong brand image with a loyal customer database.

SWOT Analysis

When trying to gain a better incite into the company and the industry, we must look at four main components: strengths, weaknesses, opportunities and threats. We consider Harleys top two strengths to be their strong brand image and ability to boost sales due to their customer loyalty and also their strength for distinctive innovation due to their effective research and development team. We consider their weaknesses to include declining stocks and a low brand saturation out of the United States. Concerning opportunities, some things external to the firm that Harley could take advantage of is the growing trend to become economically friendly and also a growing demand for heavy bikes outside the United States. Finally, for threats that the company should be aware of and work hard to avoid are increasing motorcycle deaths on heavyweight bikes and also the threat of new entrants due to easy profits and low production costs.

Strengths:

Brand image/awareness

Harley’s strong brand image and ability to maintain high sales due to customer loyalty are without a doubt Harley Davidson’s biggest strength to the company. The introduction of Harley Davidson’s Owners Group was an extremely effective innovation in creating customer loyalty. The Owners Group helps to bond Harley riders not only closer to other riders but also to the brand by offering rewards programs and creating events where Harley owners can ride together. Currently, Harley boasts to have no fewer than 450,000 members at all times. By branding the Harley Davidson experience and not just the product itself, the company can expand on how it captures value. Harley enthusiast can buy...
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