Swot on Harley

Harley-Davidson business strategy is relating towards making decisions that are vital for market brand dominance with the targeted audience. The decision approach will give the information strategies used to improve sales forecast objectives. Over the years Harley-Davidson re-invent their strategies to adapt to market changes and improve efficiency in the manufacturing design and safety features. Harley-Davidson has used the cost leadership strategy through the alliances with other corporation when there is an opportunity to lower the cost of production for a given level of quality and gain market share through the sales in large quantities targeting broad markets (QuickMBA, 2010). Harley-Davidson customized motorcycles depending on the customer needs and wants which offers unique attributes that are valued by customers

Mixed Financial Profile. Harley’s financial picture between 1986 and 2007 was nothing short of extraordinary but the recession in 2008 adversely impacted the motorcycle market. Going into a detailed financial review is outside the scope of this paper but a review of Harley’s key financial ratios against industry averages indicates mixed results. Growth Rate data shows unfavorable comparisons: 5-year averages for growth rates in sales, net income and dividends paid; all are unfavorable in the Leverage area: Debt-to-Equity ratio, Current ratio, Quick ratio and Interest Coverage; there is a mix in the Equity area: Price-to-Sales is unfavorable, while Current Price-to-Earnings, Price-to-Cash Flow ratio and Price-to-Book are favorable. All indicators are unfavorable in the Profitability area: Return on Equity, Return on Assets and Return on Capital are significantly below industrial averages; and, a mix is found in

This case study is about Harley-Davidson, Inc., which is the parent company for the group of companies namely Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport motorcycles and Harley-Davidson Financial Services provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

Harley Davidson was established in 1903 by William Harley and Arthur Davidson in Milwaukee, WI where they built the first Harley motorcycle, a sports bike, in a small wooden shed. In 1906 the company built a new factory in Milwaukee, WI and also launched its first product catalog this year. The company began to gain a reputation for itself when Walter Davidson, Arthur’s brother, rode a Harley motorcycle to victory in a race in 1908. Harley became known as a company that offers heavy customization of its product for its customers and by 1910 Harley had sold 3,200 motorcycles in the US where its dealer network grew to over 200 separate locations. By the end of 1920, Harley had become the largest motorcycle manufacturer in the world which was supported by over 2000 dealers in 67 countries. The company supplied over 90,000 motorcycles to the US military during the Second World War and it earned the Army-Navy E award for excellence in war time production for three consecutive years. After the World Wars, Harley shifted its focus to more recreational bikes due to increased competition of foreign imports, mostly from Europe. During the late 1950’s, competition from Japanese motorcycle manufacturers like Honda, Yamaha, and Kawasaki began to take over the US market share. By the late 1960’s Japanese motorcycle sales accounted for 85% of total motorcycle sales in the US due to their cheaper and technologically superior bikes. Between 1973 and 1983, Harley’s market share decreased

Although Harley-Davidson has many opportunities, they still face several significant threats from external forces. For example, within the industry Harley faces threats from the intensity of competition and the threat of substitute products. Harley-Davidson is competing with Asian motorcycle makers such as Yamaha, Suzuki, and Honda. While these makers do not specialize in heavy bikes, they do have the potential to reduce Harley-Davidson’s market share as well as provide substitute products for consumers. Automobiles also pose a threat due to the ever-increasing amount of cars being produced and sold internationally. This has forced Harley-Davidson to spend more money on marketing in foreign markets.

The three statics of Harley-Davidson’s is; revenue, growth rate, and number of units that are sold. The manufacturer of the United States heavyweight motorcycle division has obtained, arrested, and achieved approximately fifty-four percent of the broad United States motorcycle exchange. Harley-Davidson has fifty-two percent share of the broad motorcycle exchange in which IBISWorld INC. has estimated that it will generate six point nine billion dollars in revenue this year, (Forbes, (2014).

Harley managed to remain profitable by introducing larger, more powerful motorcycles, becoming the undisputed leader of the market with over 60% market share. It earned a commanding lead of 50% market share in the United States and 32% globally in the 1950’s. The Harley motorcycle became a part of American iconography and was associated with the U.S. flag and the bald eagle, America’s national symbol. This resulted in unprecedented brand loyalty, especially among U.S. customers, which is prevailing till today.

The first strategy Harley-Davidson uses is customer focus. Harley-Davidson offers a wide range of products and services, from children’s’ tricycles, clothing accessories, and affordable motorcycles to more higher-ended luxury motorcycles targeting customers in all age groups. By allowing their customers to personalize and customize their motorcycles, this strategy helps build their second strategy, which is brand loyalty. Other strategies that help build brand loyalty and selling dreams are to have groups, such as the Harley Owners Group (HOG) and the Buell Riders Adventure Group (BRAG), so they can emphasize to their customers that everyone is welcome to join its large extended family for riders,. Their value is: “Tell the truth. Be fair. Keep your promises. Respect the individual. Encourage intellectual Curiosity.” (Harley-Davidson web

The overall intensity of rivalry in the motorcycle industry is strong, key players in this industry include the Harley Davidson, Winnebago, Polaris, Thor, Artic Cat and Marine Products. These top performers hold a high percentage of

The oil crisis in the 1970s prompted the popularity of the smaller motorcycles, mopeds, and scooters that were made primarily by Japanese manufacturers. Dealers sold vehicles to those interested in conserving gas and finding cheap transportation. Harley-Davidson 's market share, already dropping, was further threatened by Honda 's 1969 entrance into the heavy and super heavyweight segment of the market. By the late 1970s Harley-Davidson faced severe production quality problems in addition to stiff competition. A management buyout in early 1981 set the course for the company 's revitalization. It was protection under higher tariffs however, recommended by the International Trade Commission that helped

Founded in 1903 by Arthur Davidson and William S. Harley to supply racing motorcycles. When the business began Harley-Davidson began producing small engines fixed to frames. Being very successful in business, Harley-Davidson invented a V-Twin engine which was larger and much more efficient than previous models. This new invention formed an integral part in developing what is considered to be the modern day motorcycle. After the wars when soldiers were coming home soldiers found motorcycles to provide a cheaper form of transportation. This research paper will discuss the general business environment, risks and uncertainties, corporate strategy, and viability of Harley-Davidson forming a co-operative strategy along with recommendations for the company.

Harley-Davidson (Harley) was founded in 1903 as a small business and became the largest motorcycle company in the world after 15 years of operations. Moreover, by 1950, Harley-Davidson was the leader in the U.S. Market with over 60% market share. Historically, the key success factor in Harley-Davidson combined two important ingredients: several competitive advantages and favorable conditions in the motorcycle industry since the industry was almost new and the barriers to enter or the forces affecting it were weak (see appendix 5.1). After the victory of Walter Davidson riding a Harley-Davidson in a race and the development of unique innovations such as the V-twin engine, Harley obtained

* Despite faring badly in the 1970’s due to the threat that Japanese Competitors posed, by 2006 the company held over half the share of the US heavyweight motorcycle market, and a third of this market worldwide. This was as a result of a new strategy that was implemented in the 1980’s, that shifted the focus of the company onto its customers.

I. SITUATION ANALYSIS: Harley Davidson had its centennial celebration of their motorcycle production industry in 2003, meaning it had its start in 1903. Up until the later 1990s, the company primarily focused on producing the heavyweight motorcycles that the majority of aging male baby boomers desired. The company had no issues trying to differentiate their product at the time as no other competitors for this fun kind of transportation existed other automobiles and such. As all companies do, Harley Davidson experienced some tough times. AMF was “a heavy-industrial conglomerate looking to diversify into leisure products,” and acquired Harley Davidson in 1965 (Nolan and Kotha, 3). From there, HD struggled with controlling the quality of their macho motorcycles. At one point, their factory even had cardboard boxes under each of the two-wheelers soaking up the leaking oil. It was not until 1998 that these main quality concerns were taken care of through management changes. Analysts question whether Harley could meet its long-term sales goals, could continue to make annual earnings growth for the mid-teens, and could attract younger riders and women riders.

Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS).