Isaiah Miller
IBUS 453
Seitz
Harley Davidson Case 1. Which of porter’s generic strategies is H-D using? Will this strategy work for all the countries described in the case? Why or why not? H-D is using the niche market strategy with a focused differentiator in the luxury market. H-D’s exclusive focus on luxury motorcycles shows that they are committed to the niche luxury market and also the international market. This strategy could definitely work in some countries but can also fail in others and cost the company. For example, China, India and Russia could be good target countries for this market because they are a part of that golden triangle of countries that are newly wealthy and buying more luxury goods. On the other hand this strategy has proven not to work in countries like the United States where luxury was popular for a long time but do to recession the demand for luxury goods has fallen significantly causing a drop in sales and missed financial goals. 2. What does a Porters five forces analysis reveal about the strategies H-D has employed in recent years? The first of the five forces is one of the most important forces in this case, which is the degree of competition in the industry. This force is important because the whole reason for all their recent changes is to keep up with competition and keep the company in a good financial position. The threat of new entrants could be a factor for H-D however they are a pretty large and well established company and new entrants generally cannot compete with H-D. The bargaining power of buyers could also be a driving force for H-D. With other companies such as Honda, Kawasaki, etc. buyers can do their research and find better deals if they are out there but H-D’s focus on image and status along with brand loyalty battles this force. Another driving and influential force for H-D is the threat of