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Harley Davidson External Analysis

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III. External Analysis

Opportunities:

The second of the SWOT analysis includes a look at Harley Davidson’s biggest opportunities and threats. Harley currently operates in what is known as they heavyweight cycle market (over 650cc engines), this means that the sheer size and weight of their bikes set them apart from some of their other lighter, faster rivals. The heavyweight market can be broken down into three different segments cruisers, touring bikes, and performance models. Cruisers are the bikes that are generally associated with Harley Davidson’s, big, loud, low riders that are generally considered to be macho cycles. This style was introduced by Harley and makes up for more than half of the market. Touring bikes are motorcycles that are specifically designed for long distance riding. These bikes normally have features that include two way radios for the driver and passenger, heaters, radio, padded seats etc. This section of the market is dominated by car companies such as Honda and BMW who have engineered their bikes to provide the rider with a smoother, more comfortable ride over long distances. Lastly, performance models are modeled after racing bikes only larger. These bikes have the latest in high-tech engines and put their emphasis on speed and acceleration instead of comfort or styling. These bikes are the ones that generally dominate the European and Asian markets.

One of Harley’s biggest opportunities for growth is overseas in areas such as Europe, China and India. Currently their demand for motorcycles is much higher than the United States’ due to the size of their market as well as rising gas prices that make it harder for the average consumer to afford a car. In order for their products to be competitive, Harley must focus on the younger generation overseas. Young men and women are more inclined to ride than older people are if they have

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