competitive advantage. So, HDI is seeking to penetrate the market as well as engaging in market development, which in this case means attracting a new demographic segment of younger and European customers it has not yet attracted before due to several reasons such as the price and the appeal of the Harley Davidson brand as being a motorcycle “an old guy would drive”. As stated in the case study, HDI does not and will not have cost leadership in the industry it competes in. The huge gap between Honda which
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(Low) * Requires high capital investment to enter the business of the scale economies in production, research, marketing and service of this industry is high. * Brand identification of Harley Davidson has been strongly established for years. New entrant will have to overcome customer loyalty of Harley. 2. Bargaining power of suppliers: (Moderate/High) * Harley’s suppliers are not fragmented so they have a high bargaining power. * Switching cost of changing suppliers is high because
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The Strategic Situation of the Harley Davidson Harley Davidson is a 105 year-old company that was originally established by neighbours Arthur Davidson and William Harley; it is obvious that the name of the company was derived from the name of the two founders. Harley Davidson is into the industry of motorcycle. The growth of the said industry started from different developed countries such as the United States, France, Germany, Spain, France as well as the Great Britain. It was further developed
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STRATEGIC MANAGEMENT Case Analysis CASE: Harley Davidson, Inc- 2008 By Julian Kee Synopsis Harley-Davidson is one the leading motorcycle manufacturers in the world. It’s hard to imagine the global brand’s simple beginning. In 1901, Harley-Davidson motor company started in a backyard shed by friends William Harley and Arthur R. Davidson who wanted to create their own motorcycles. In 1907, the company had grown to become incorporated. Harley-Davidson was acquired
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1. What is the nature of the international business environments Harley faces? What types of risks does the firm face? The nature of the international business environments Harley faces are complex and varies due to cultural and regional needs of the diverse markets it competes in. This is shown by the differences of the sales mix in U.S. and Europe as revealed in exhibit 1 of the case. For example, in 2006, custom models accounted for 47.4% in U.S., whereas it accounted for 13.4% in Europe. In
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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
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------------------------------------------------- Harley-Davidson Question 1: What are Harley-Davidson’s current sources of competitive advantage? The challenge for a marketing strategy is to achieve sustainable competitive advantage. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justify higher prices. At present, Harley-Davidson has a number of sources of
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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
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Strategic Brand Management Case study: Harley-Davidson Contents Question 1 3 Question 2 5 1. Brand elements 5 2. Criteria 6 Question 3 8 1. Custom Vehicle Operations program (CVO) 8 2. Harley Owners Group (HOG) 8 3. Bar café 8 4. Exchange of motorcycle 9 5. Companies can learn from H-D 9 Question 4 10 1. Definitions 10 2. Equally successful 10 3. Non-equally successful 10 4. Co-branding or not? 11 Question 1 -------------------------------------------------
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Case Introduction Harley-Davidson, Inc. was established and entered the motorcycle industry in 1903. The company has primarily focused its resources on the heavyweight motorcycle segment of the industry and is differentiated from its competitors because its focus is only on the motorcycle industry as opposed to other transportation markets such as: cars, boats, ATVs or snowmobiles. The company has experienced both the “good and bad times.” The company was founded by several
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