...Harley-Davidson: Strategic Profile and Case Analysis Della Shelly, Melie Solomon, Jim Tunison Misericordia University Table of Contents Section I: Introduction3 Section II: Company History3 Section IIa: The Road to Decline4 Section IIb: The Turnaround5 Section III: Porter’s 5 Forces6 Section IV: SWOT Analysis7 Section V: Looking Forward11 Section VI: Future Strategic Actions 12 Section VII: Achieving Continued Success 12 Section VII: Conclusion14 Section VII: Sources 15 ------------------------------------------------- Section I: Introduction Harley-Davidson is an American cultural and business icon. Surprisingly, it has achieved its fame and fortune by essentially relying on designing, manufacturing, selling, and servicing a relatively stable product: two wheels, a 45 V-Twin engine, and a set of handlebars. The most striking distinction about Harley is not the fact that it is successful in selling a single product for over one hundred years, but the fact that its motorcycles have maintained its attractiveness with a broad range of consumers. Outlaw bikers, investment bankers, and people in the middle of a midlife crisis, all seem to be drawn to its lure. Harley can attract such a melting pot of consumers because it is a representation of the American dream…Freedom. ------------------------------------------------- Section II: Company History Harley-Davidson enjoyed a decent amount of success soon after its inception in 1903. The founders, William...
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...revenues, and more, the SWOT analysis looks at the company from a different angle. SWOT stands for Strengths, weaknesses, opportunities, and threats. What are Harley-Davidson’s SWOT, specifically the opportunities and threats external to the organization and under consideration of the fact that they are looking to expand overseas? First we must define SWOT. The purpose of the SWOT analysis is to analyze the company from four key strategic areas to better determine what changes they should make. SWOT first looks at the strengths and weaknesses of the organization; these are internal factors to the company. This is to help the company get a firm grasp on its core market advantages and areas that competitors may criticize the company for. Companies typically make core strengths their focal point for marketing. The purpose of identifying and defining the organizations weaknesses is not only to bring them to light, but to understand them so that they can decide what areas to improve and what areas are inherent in their business. Opportunities and threats are factors external to the organization. Identifying opportunities will hopefully point out untapped opportunities organizational leaders should consider capitalizing on. Threats identify external factors like changes in government regulations, costs, environmental standards or any other condition change that can affect the company external to the company itself. The threats to Harley-Davidson are considerable. For...
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...Case Study: Harley-Davidson -Analyse Harley-Davidson resources and capabilities, and identify its key strengths and weaknesses - Analyse the international competitive environment in which Harley-Davidson is operating to identify its main threats and opportunities. Recommend a forward strategy for Harley-Davidson, which addresses these issues. International Management Individual Assignment Table of Contents 1. Introduction 3 2. Harley Davidson Overview 4 2.1. Harley-Davidson Current Strategy 4 2.2. Resources And Capabilities 5 3. Industry Analysis 6 3.1. Porter’s Five Forces Model 6 3.2. International Competitive Environment 7 4. SWOT Analysis 9 5. Forward strategy recommendation for Harley-Davidson 10 6. Conclusions 12 6. References 13 1. Introduction This report is based on Harley-Davidson, Inc., case study. The aim of this report is to analyse industry and international competitive environment where Harley-Davidson is operating in. One must apply and fully analyse theoretical concepts and frameworks in order to fully comprehend how Harley-Davidson is differentiate itself in the international competitive environment and what strategies is using to achieve higher market share. The empirical material is being analysed by exploring the general information of Harley-Davidson company itself, following by the industry and competitive environment analysis, review of SWOT theoretical framework. Finalising with the recommendations of forward...
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...Question 1 SWOT Analysis Harley- Davidson being the largest motorcycle manufacturing company should set their goals and objectives and put them into action this is by carrying out a SWOT analysis on the their product. The SWOT analysis allows for the organizations achievable goals to be reached. Identifying the internal and external factors that are favorable to achieving the objectives is very important to businesses. The SWOT analysis is made up of Strength, Weakness, Opportunities and Threats. Strengths are the characteristics that give a business a competitive advantage over other businesses. The case of Harley-Davidson has based its marketing strategy on not only selling the motorbikes but also the lifestyle whereas its competitors only concentrate on selling their products. Since the price of motorcycles is expensive, Harley has been able to create value by keeping the value of motorcycles below demand, this enables the business to compete with the other manufacturers whose prices are low. Harley developed a strategy of value over price that is offered through customization options and niches. Weaknesses is an internal characteristic that places the business at a disadvantage with others, the fact that Harley is a large manufacturer worldwide means that more resources should be used in ensuring that quality products are taken to the market hence the motorcycle prices would be higher than those of its competitors. Opportunities involves all the elements that a project could...
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...BUSINESS STRETEGY | HARLEY DAVIDSON | | SUBMITTED BY- MANISHA YADAV(IB/05/04) | | SUBMITTED TO-MR. AMIT SAREEN | 9/14/2013 | | Table of content Chapters | Page No | Introduction | | History | | Value | | Vision,Mission | | Product Extension | | Intensive Strategies | | Organizational Chart | | Management | | İnternal & External Forces | | Micheal Porter Analysis | | Market Share | | Human Resource | | Strategic mix | | Competitive Profile Mix | | Internal Analysis Factor Mix | | SWOT & SWOT Matrix | | BCG | | Conclusion | | Possible Strategies | | Introduction Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. Founded in 1903 in Milwaukee, WI, Harley just celebrated its 100th anniversary with a series of events around the world that culminated in hundreds of thousands of motorcyclists rallying last summer on the shores of Lake Michigan. In 1929, there were 241 motorcycle manufacturers in the US. After the Depression, only two remained: Harley and Indian. By 1953, Indian went out of business, leaving Harley-Davidson as the only American motorcycle manufacturer. Financial difficulties in the 1970’s led to the parent company, AMF putting the motorcycle division up for sale. Without a buyer, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed...
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...1.0 Environmental Appraisal Analysis Environment refers to factors that can affect Harley Davidson’s directly or indirectly Kotlar and Armostrong (2011). For environmental analysis, Top-Down Approach will be followed. First, Harley should consider macro factor that can influence marketing plan. These will be evaluated with PESTEL analysis. Second, the company has to take insight on motorcycle industry of UK to examine competitiveness and long-term business prospects (Elliott, and Patton,1996). Porter’s Five Forces Model will analyze the industry. Finally, a SWOT analysis will be done to determine company’s suitability and vulnerability with UK market. So, the analytical framework will be as below. Figure 1: Framework for environmental Appraisal 1.1PESTEL Analysis The following factors will be considered as influential in PESTEL analysis. More factors will be included which management consider very important to take a strategic marketing decision. 1.1.1Economic Factors Economy of UK is rebounding after recession, which is again restoring consumers’ confidence for purchasing luxury product. Trading Economics (2013) stated The economy in second quarter of 2013 is growing .3% more than in 2012. The following chart will show the recovery of UK economy from fragile situation. Figure 1.2: GDP growth rate of UK Beyond economic parameter, the duty over foreign firm’s motorcycle export to UK is 6% where in addition to that VAT will be 20% on foreign...
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...Case Study: Harley-Davidson 1. Based on your readings from the textbook and other information about Harley at Harley Davison's website and other sources, what do you think are its major strengths & weaknesses? Some of the strengths Harley-Davidson has are as follows: • Only American made heavyweight motorcycle. • Has a strong brand and is well established in the consumer’s mind with the image of “freedom and strength” (Adam, 2010). • “Promotes diversity by partnering with Habitat for Humanity, Hunger Task Force, Boys and Girls Club and YMCA Black Achievers Program & Black College Tour” (Harley-Davidson Motor Company Career Opportunities). • Solid partner-type relationship with employees. Some of the weaknesses Harley-Davidson has are as follows: • They charger high prices for their products. • Low market shares, especially in the European market. • Scooters are more agile on the European roads vs. American highways. 2. What are several of the potential opportunities and threats facing Harley? Some of the opportunities Harley-Davidson faces are as follows: • Women and young people prefer to ride a bicycle or a scooter so creating light version of a Harley could prove profitable. • The need to market more competitively in the European market. Some of the threats Harley-Davidson faces are as follows: • Environmental laws are a lot stricter than what they use to be. • Union strikes could cause a loss in production for enforcing a modification in...
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...College 12-10-2010 Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz Western Michigan University Follow this and additional works at: http://scholarworks.wmich.edu/honors_theses Part of the Accounting Commons, Sales and Merchandising Commons, and the Strategic Management Policy Commons Recommended Citation Lenz, Sheila, "Harley-Davidson, Inc.: A Strategic Audit" (2010). Honors Theses. Paper 1853. This Honors Thesis-Open Access is brought to you for free and open access by the Lee Honors College at ScholarWorks at WMU. It has been accepted for inclusion in Honors Theses by an authorized administrator of ScholarWorks at WMU. For more information, please contact maira.bundza@wmich.edu. WESTERN MICHIGAN UNIVERSITY Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz December 10, 2010 LEE HONORS COLLEGE - CAPSTONE THESIS 2 Table of Contents Analysis Business 3 Mission Statement Analysis 3 Porter's Exercise 4 Marketing Strategy 5 Financial Analysis 5 IFAS Summary 9 EFAS Summary 10 SFAS Summary 11 Recommendations SWOT Analysis 12 Portfolio Analysis 16 Corporate Strategy 16 Business Competitive Strategy 18 Business Cooperative Strategy 18 Conclusion 19 Works Cited 20 Harley-Davidson, Inc.: A Strategic Audit Analysis Business Harley-Davidson, Inc., known for its famous bar and shield trademark, is based out of Milwaukee, Wisconsin. It is currently a public company with over 100 years of experience producing motorcycles. Harley consists of two...
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...1 a) How did Harley dominate the US industry historically Historically, Harley-Davidson managed to dominate the US market by correctly identifying its strengths, weaknesses, opportunities and threats and understanding the environmental factors that influenced the industry that it operates in (Figure 1 and Figure 2). By utilising its strengths to maximise the opportunities presented to the company, Harley-Davidson was able to implement a succession of affective strategies, allowing it to capture 60% of the motorcycle market and subsequently became the market leader in the late 1950s. In the early years, the company attracted customers and established brand credibility by utilising the ‘victorious’ and ‘sporting’ brand image of one of its founders, Walter Davidson. The company understood its customers need for a product that can be fixed at home and therefore, was able to fulfil this need with its pioneered V-twin engine innovation. In addition, Harley-Davidson invested in R&D, focusing on improving the quality and reliability of its machines, building on its strengths and therefore was able to charge a premium for its motorbikes. This, in turn assists Harley-Davidson to acquire its prestigious, luxury brand image and achieved a cult following. In doing so, Harley Davidson was able to increase its market share, despite a sagging economic environment of the 1920s. When sales declined in the 1950s, the company relied on its innovations as a point of differentiation and built...
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...Harley-Davidson Case Analysis Harley-Davidson Case Analysis Rayzhaun Jones Mississippi Valley State University Strategic Management Dr. Jimmie S. Warren Abstract With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and manufacturing techniques. Harley-Davidson is one of those excellent companies whom have challenged traditional ideas. We intend to show through this case study that any company can follow Harley-Davidson’s techniques and lead them to excellence. Mission Statement “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and too the general public an expanding line of motorcycles, branded products, and services in selected market segments.” Vision Statement “Harley-Davidson is an action-oriented, international company, a leader in its commitment to continuously improve its mutually beneficial relationships with stakeholders. Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities. Company Profile and Case Analysis Harley-Davidson Inc. is an American motorcycle manufacturer. Harley-Davidson specializes in the sales of heavyweight motorcycles that are designed for cruising on highways. Harleys have a distinct design and exhaust sound that have appealed...
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...Harley Davidson Harley Davidson also known as the Ferrari of bikes states in their 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 (Youtube).” Harley Davidson strives to build and provide not only a mode of transportation but also a lifestyle. From their inception Harley Davidson has “enjoyed an active path of enormous growth and gradually emerged as the most recognized motorcycle producer in North America.” Despite economic turbulence, the company has managed to operate efficiently, largely supported by its strong financial backbone (Repine Jr., 2011). Other key strategies such as branding and global expansion have enabled the company to sustain its growth rate for a long term. Harley-Davidson is committed to providing the best customer service in every department. Although Harley Davidson’s mission implies the company connection with customers helps create superior value, Harley Davidson still needs to formulate a way to measure customer service. The company uses surveys to collect data relating to customer service, customer experience, and customer opinion. One method Harley Davidson uses for data collection is a panel of owners. Harley Davidson has an exclusive target market ranging in mostly men, although it is expanding out to woman and teens. Middle aged men possibly going...
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...Our report handles the problem of how Harley Davidson which produces traditional bikes can maintain its position in this changing environment. Company Information: Harley Davidson’s EPS has been growing at a very strong rate for the last decade. Since 1996 the company’s EPS has grown at an extremely fast 22 % annual rate. Industry Structure: Decisional Problem: Decision Alternatives: Alternative One - Continue as before / Status Quo Alternative Two – Reposition Buell Alternative Three – Renewing the Harley Davidson Brand Alternative four – Selling Buell Statements: Vision Mission Question 4 Internal and External analysis of Harley Davidson Harley Davidson appears to be doing financially sound. This company has been around over a century now and it continues to have a strong presence in the world market for heavy weight cruisers. We will perform a strategic analysis to identify HD`s strengths, weaknesses and opportunities and threats. External analysis Porter’s five forces Internal Rivalry: The market for heavyweight motorcycles is fairly concentrated. There are only four major firms producing these motorcycles. In addition to HD the other three are Yamaha, Honda and Suzuki. HD has been a dominant player in the market with a market share of over 50% in the past. Today this market share has fallen to about 50% due to other manufacturing companies expanding their motorcycle production and through heavy marketing especially...
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...Case Analysis | Group #4 | Harley Davidson | Group #4 Written Case: | Executive Summary: Harley Davidson, Inc. began operations in the first decade of the 20th century. Since that time they have developed three major business segments including motorcycles, transportation vehicles, and work within the defense sector. They are headquartered in Milwaukee, WI and in 1990 became the 865th largest U.S Company, as ranked by Business Week. Harley Davidson is best known for its superheavyweight motorcycles. By 1960, Harley Davidson was the undeniable market leader in the superheavyweight category of motorcycles. This was when Japanese manufacturers started to enter the market with lighter weight models of motorcycles which were not in direct competition with Harley’s much larger bikes. A large increase in supply, along with great marketing efforts by the Japanese manufacturers, rapidly increased the demand for motorcycles. Over the years, leading up to 1990, Harley Davidson has remained the market leader in the superheavyweight category of motorcycles with a 62.3% share of the U.S market. However, when looking at the U.S motorcycle market as a whole (see Figure 1), Harley Davidson only represents a 13.9% share of the market. The determining factor behind the lack of market share when looking at the macro motorcycle market is that Harley Davidson only produces larger bikes. They do not produce any motorcycles in the lightweight category. A detailed SWOT analysis...
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...operating in “a structured chaos” (Gavetti, 2004, pp.861). He believed that by incorporating certain basic structural changes and by redefining company’s strategic goals, it could be turned into a profitable brand-driven company. Ducati’s turnaround focused on brand building which was supported by the reconfiguration of a number of activities ranging from increased efficiency in the production process to broadening its customer base. Having almost doubled its market share in 2001, Minoli wanted to find new sources of growth. Among others he considered the cruiser market, currently dominated by Harley Davidson. His goal was to compete directly with Harley Davidson in Europe by introducing a cruiser that combined Ducati’s high performance engine with its own unique design. This essay will begin with a SWOT analysis of Ducati as it stands at the end of its turnaround program. The analysis will bring to light Ducati’s strategic position in the industry as well as any potential that the company may...
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...STRATEGIC AUDIT HARLEY DAVIDSON Inc Audit Team: Graeme Eldridge Enya Gu Areeya Ongmongkonkun John Gao CONTENTS |Case Abstract |3 | |History |4 | |Current Situation | | |Performance |5 | |Strategic Position | | |Mission |5 | |Objectives |5 | |Strategy |6 | |Policies |6 | |Corporate Governance | ...
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