Harley Davidson Case Analysis
I. SWOT Analysis-Avon Products, Inc.
Strengths 1. Strong brand recognition-90% brand recognition worldwide 2. Own most of their manufacturing and distribution centers throughout the world 3. World’s largest direct seller 4. Strong international presence-currently have sales reps in over 100 countries 5. Strong distribution strategies
Weaknesses 1. Lagging far behind competitors in customer loyalty 2. $1.4 billion in long term debt 3. Higher prices relative to competition 4. Competitors have greater marketing and financial resources 5. Poor brand image
Opportunities 1. Growth potential for the eye makeup market 2. Demand for cosmetics normally remain constant during tough economic times 3. Growing trend of “green” beauty products 4. Sales opportunities on the Internet 5. Increase brand image through TV ads using celebrities
Threats 1. Rising operating costs-spending on ad campaigns has more than tripled since 2005 2. Negative currency exchange rates 3. Stronger competition from Revlon and Mary Kay 4. Global recession 5. Slowdown in demand for color cosmetics
SO Strategies 1. Develop aggressive marketing campaign geared toward women-(S1,O3) 2. Expand operations in India-(S5,O1)
WO Strategies 1. Expand marketing efforts to women and baby boomers (W5,O3) 2. Use licensing revenues to offset high cost of production to lower prices of motorcycles (W3,O2)
ST Strategies 1. Increase financial incentives for trade-ins at dealerships (S2, T2) 2. Implement lean manufacturing practices to decrease production costs (S5, T5)
WT Strategies 1. Recruit new investors for more financial resources (W4, T3) 2. Create new, low priced product line such as motorized scooters (W2, T5)
3. Space Matrix
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Harley-Davidson’s Space Matrix shows that its strategy falls under the Aggressive
Strengths 1. Strong brand recognition-90% brand recognition worldwide 2. Own most of their manufacturing and distribution centers throughout the world 3. World’s largest direct seller 4. Strong international presence-currently have sales reps in over 100 countries 5. Strong distribution strategies
Weaknesses 1. Lagging far behind competitors in customer loyalty 2. $1.4 billion in long term debt 3. Higher prices relative to competition 4. Competitors have greater marketing and financial resources 5. Poor brand image
Opportunities 1. Growth potential for the eye makeup market 2. Demand for cosmetics normally remain constant during tough economic times 3. Growing trend of “green” beauty products 4. Sales opportunities on the Internet 5. Increase brand image through TV ads using celebrities
Threats 1. Rising operating costs-spending on ad campaigns has more than tripled since 2005 2. Negative currency exchange rates 3. Stronger competition from Revlon and Mary Kay 4. Global recession 5. Slowdown in demand for color cosmetics
SO Strategies 1. Develop aggressive marketing campaign geared toward women-(S1,O3) 2. Expand operations in India-(S5,O1)
WO Strategies 1. Expand marketing efforts to women and baby boomers (W5,O3) 2. Use licensing revenues to offset high cost of production to lower prices of motorcycles (W3,O2)
ST Strategies 1. Increase financial incentives for trade-ins at dealerships (S2, T2) 2. Implement lean manufacturing practices to decrease production costs (S5, T5)
WT Strategies 1. Recruit new investors for more financial resources (W4, T3) 2. Create new, low priced product line such as motorized scooters (W2, T5)
3. Space Matrix
[pic]
Harley-Davidson’s Space Matrix shows that its strategy falls under the Aggressive