External analysis and Swot of Harley-Davidson
Trident University
Module 3- Case Assignment
MGT499
Dr. David Pritchard
June 13, 2015
Harley-Davidson has many opportunities for moving forward in a competitive environment. However, H-D faces many threats in the environment. The alliance between Harley and Lehman Trikes presented an opportunity for both organizations.
Opportunities
• Large India market for H-D is virtually untapped (only 6% of population have motorcycles)
• Manufacture street bikes in India with low price range (aiming for young audience)
• Considering entry into the 250-300cc bike segment
• Bikes predicted to reach more than 20 million in India by 2020
• In India, availability of loans to consumers is easy
• Competition is at the peak and markets are getting saturated
• New growth avenues in India’s regions
• High research and development that facilitates innovation and attracts industry attention
• Continuous focus on new product development to support innovation (Globaldata, 2012)
Threats
• Depends on a single supplier for some but not all raw materials (dependent on the supplier to deliver materials in time)
• Rising input costs has a major impact on the operational costs
• Increasing pressure on the costs of commodities leads to capacity constraints, lower production, and financial distress to raw material suppliers
• Delay in receiving raw materials affects product delivery to customers, which impacts the business and customer relations
• Manufactures motorcycles in the US, Canada, Europe, and Asia
• Retail prices are higher than competitors
• Competitors have diversified businesses and compete in all segments of the bike market
• Retail prices are higher than the competitors
• Competitive disadvantage if prices become a factor for customers in the heavyweight market
• Financial procedures face rigid competition from various banks, insurance companies, and financial institutions that have access to other
Module 3- Case Assignment
MGT499
Dr. David Pritchard
June 13, 2015
Harley-Davidson has many opportunities for moving forward in a competitive environment. However, H-D faces many threats in the environment. The alliance between Harley and Lehman Trikes presented an opportunity for both organizations.
Opportunities
• Large India market for H-D is virtually untapped (only 6% of population have motorcycles)
• Manufacture street bikes in India with low price range (aiming for young audience)
• Considering entry into the 250-300cc bike segment
• Bikes predicted to reach more than 20 million in India by 2020
• In India, availability of loans to consumers is easy
• Competition is at the peak and markets are getting saturated
• New growth avenues in India’s regions
• High research and development that facilitates innovation and attracts industry attention
• Continuous focus on new product development to support innovation (Globaldata, 2012)
Threats
• Depends on a single supplier for some but not all raw materials (dependent on the supplier to deliver materials in time)
• Rising input costs has a major impact on the operational costs
• Increasing pressure on the costs of commodities leads to capacity constraints, lower production, and financial distress to raw material suppliers
• Delay in receiving raw materials affects product delivery to customers, which impacts the business and customer relations
• Manufactures motorcycles in the US, Canada, Europe, and Asia
• Retail prices are higher than competitors
• Competitors have diversified businesses and compete in all segments of the bike market
• Retail prices are higher than the competitors
• Competitive disadvantage if prices become a factor for customers in the heavyweight market
• Financial procedures face rigid competition from various banks, insurance companies, and financial institutions that have access to other
References: GlobalData, (2012). Harley-Davidson, Inc. – Financial and Strategic Analysis Review. Retrieved from: http://callisto.ggsrv.com/imgsrv/Fetch?banner=4d609cd7&digest=27b6b6 d33026b58ef227e0025dda7d42&contentSet=SWOT&recordID=47405_G DAUT29887FSA Looney, D. C., & Ryerson, A. (2011). LEHMAN TRIKES: A STORY WITHIN A STORY. Journal Of The International Academy For Case Studies, 17(8), 35-39.