Strategic Plan Harley Davison
Stategic Plan
Executive Summary –Harley Davidson Strategic Plan
The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight motorcycle market are based on several factors; price, quality, reliability, styling, product features, customer preference, and warranties. Harley’s first segment is motorcycle and related products business which includes designing, manufacturing, and selling heavyweight touring and custom motorcycles products, parts, and accessories. The custom products charge a higher price because of its features, styling, and high resale value.
Their target market is mainly in the United States. By the end of 1997, they have an approximate 48.3% share in the United States market, 6.1% share in European, and 16.5% share in Asia/Pacific. New competitors have entered the marketplace because demand for the motorcycles has exceeded production. The demand is prospected to grow in the future, and the switching cost is low. The company should continue to build their enterprise. Since the industry does not have significant economies of scale, growth-via-acquisition strategy could be used. Harley-Davidson can merge or acquire weaker rival or smaller players. Taking over the weaker and smaller players will increase the entry barriers (echeat, 2008).
Company Background
The Harley-Davidson company was created 1903. The company was acquired by AMF Inc, which favored short-term profits instead of investing in research, development and retooling. Harley-Davidson’s focus was on sales, while competitors were continuously improving the quality of their motorcycles (echeat, 2008). This resulted in a downturn of the company with weak profits. Harley-Davidson Inc. acquired the Buell Motorcycle Company
Executive Summary –Harley Davidson Strategic Plan
The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight motorcycle market are based on several factors; price, quality, reliability, styling, product features, customer preference, and warranties. Harley’s first segment is motorcycle and related products business which includes designing, manufacturing, and selling heavyweight touring and custom motorcycles products, parts, and accessories. The custom products charge a higher price because of its features, styling, and high resale value.
Their target market is mainly in the United States. By the end of 1997, they have an approximate 48.3% share in the United States market, 6.1% share in European, and 16.5% share in Asia/Pacific. New competitors have entered the marketplace because demand for the motorcycles has exceeded production. The demand is prospected to grow in the future, and the switching cost is low. The company should continue to build their enterprise. Since the industry does not have significant economies of scale, growth-via-acquisition strategy could be used. Harley-Davidson can merge or acquire weaker rival or smaller players. Taking over the weaker and smaller players will increase the entry barriers (echeat, 2008).
Company Background
The Harley-Davidson company was created 1903. The company was acquired by AMF Inc, which favored short-term profits instead of investing in research, development and retooling. Harley-Davidson’s focus was on sales, while competitors were continuously improving the quality of their motorcycles (echeat, 2008). This resulted in a downturn of the company with weak profits. Harley-Davidson Inc. acquired the Buell Motorcycle Company