Harley Davidson SWOT Analysis

{ Posted on Nov 02 2010 by Chakar Rind | 15,518 views}

Harley-Davidson, enlisted in the New York Stock Exchange as HOG (Harley Owners Group), is well-known for its motorcycles that also represent the American spirit and image. It was founded at the time of beginning of the 20th century. It is also known for surviving the Great Depression. The firm provides heavyweight motorcycles especially designed for cruising.

Strengths:

• It has approximately 70% market share regarding the heavy weight motorcycle market.

• It has its operation in manufacturing motorcycles, and it also operates in providing financial services.

• The only American brand for heavy weight motorcycle manufacturers.

• It has a strong brand name and is well established in the mind of the consumer with the image of ‘freedom & strength’.

• BRAG (Buell Riders Adventure Group), formed to endorse the brand and involve customers to tap their loyalty level.

• Motorcycles customization makes up a major amount of revenue for Harley Davidson.

• Excellent relationship with the supplier, due to which integrity of the work and cost effectiveness is achieved without expensing out the quality.

• Strong image regarding the good-will factor (The firm got its employees to join in with communities to give a helping hand).

• Strong and long lasting relationship with the employees.

• The firm supports BCNS (Breast Cancer Network of Strength).

• It also supports the MDA (Muscular Dystrophy Association) and it has in many ways aided the association regarding it research and development by providing financial resources.

• Strong marketing and distribution channel in the U.S.

• Enlisted in Fortune 500.

• Customer loyalty foremost strength of the firm (Once a customer purchases a bike, the jacket, bandanas, etc. become a part of him).

Weaknesses:

• Price charged is quite high.

• Losing market share continuously, especially in the European market.

• Analyzing the future need of producing heavyweight bikes is weak, due to which the required production amount is not met.

• Poor marketing techniques which is not attracting new customers in the international market.

• Many people also fear of being categorized as ‘hooligans’ in the society if they started riding bikes.

Opportunities:

• The demand for Harley Davidson is the highest in Europe regarding the international market.

• They must market their products more competitively, especially in the Europe market.

• India is a big and untapped market for motorcycle as well.

• Female and teenagers are showing more inclination towards riding bikes.

• International market for bikes is much larger than the U.S. market.

• Customer value parts in the international market.

• Even at regions where the economy is at a low level, Harley can exploit this opportunity because of the thinking of the customer that at that given situation, bike is a more economical way of travelling, which would be favourable for Harley.

Threats:

• Capacity restraints and supply shortage has anticipated loss in the recent years.

• The average buying age according to a research is 42 years old and increasing.

• Increased environmental regulations.

• Increased standards in the European market.

• Some of the competitors of the firm are using more resources in marketing their product line (bikes) and it is a threat as they can shift their risk factor because of having diversified product line.

• Buell division should continue under Harley’s umbrella.

• Due the low cost of making a motor bike and the high profit margin involved, it is obvious that more competition may be involved, especially the ones who are already in the market making automobiles.

References:

http://www.harley-davidson.com

http://www.echeat.com/essay.php?t=30955

http://www.freeessays.cc/db/11/bmu143.shtml

http://vlhw.com/a460839-harley-davidson-s-brand-strength-backs-the-bottom.cfm

http://www.networkofstrength.org/partners/harley_davidson.php

http://ezinearticles.com/?Why-The-Harley-Davidson-Motorcycle-Is-More-Popular-Than-Ever-Before&id=339351

http://www.marketwatch.com/story/harley-davidson-profit-rides-higher-on-strong-overseas-sales

http://www.articlesbase.com/motorcycles-articles/harley-davidson-symbolizes-the-spirit-of-freedom-and-strength-867579.html

http://www.forbes.com/2008/10/16/harley-davidson-motorcycle-markets-equity-cx_ra_1016markets32.html

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