Management 4199: Final Case Study
Harley-Davidson Inc. 2006
1. Based on facts presented in the case, perform a SWOT/TOWS analysis on the international situation facing Harley. (50pts)
SWOT Analysis
Strengths.
Harley Davidson has strong brand equity and is well established in the consumer’s mind
Harley Davidson has a strong financial position and the ability to provide financial assistance to their consumers
Offering both new and used motorcycles broadens the price range for shoppers
Large club (HOG) with hundreds of thousands of members
Excellent customer service. Harley began to actively recruit and develop dealers in Europe and Japan in order to improve their human relations
Harley-Davidson has many varieties to offer their customers thanks to joint ventures and buyouts such as Buell Motorcycle
The European demand for Harley Davidson is the highest in the international market and represents the single largest motorcycle market in the world
The international heavy weight market is growing and is now larger than US heavyweight market
Harley Davidson enlisted in the Fortune 500
Weaknesses.
The dependence on domestic sales limits could have a negative impact during economic hardships
Narrow product line, limiting the markets to operate in
High prices for new Harley Davidson motorcycles could deter some potential customers
Foreign competitors
Foreigners tend to view motorcycles as a means for inexpensive transportation, not as a way to belong to a group, such as the American “HOG” club. Large, expensive custom bikes will not be as marketable on foreign markets as a smaller, more economical model
Slow production times, foreign customers purchase motorcycles to fulfill the need for convenient, low-cost transportation, they would likely want their product to be ready available
Poor marketing techniques that is not attracting new customers in the international market
Many people also fear of being classified as ‘hooliganism’ in society if they started cycling
Opportunities.
Expand the product line-up and continue with innovation in products
Opportunities into different market segments because of the change in the demographics of Harley Davidson
Improvement in products, sales, or reducing in costs because of the restructuring plan
There are many untapped markets that Harley-Davidson can promote products. With high gas prices being a concern worldwide, the company can address the need for more economical transportation
The strategy of expanding their product line through joint ventures, buyouts and by introducing new products to their customers can be tailored to fit the needs of foreign markets
The demand for Harley Davidson is the highest in Europe and India on the international market
It must market their products more competitive, especially in the European market
International market for heavy weight bikes and bicycles is much larger than the U.S. market
Increased use of internet
Threats.
Competition(Suzuki, Kawasaki, Honda, and Yamaha) is constantly developing and evolving. Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.
Substitute products in the marketplace may affect sales.
Regulation, policies, taxes, tariffs, and other external issues are constantly changing.
Emission standards for motor vehicles are changing and may soon affect motorcycles.
Chance of uprisings, overthrown governments, or other conditions in foreign markets. Harley must keep a close eye on national conditions and keep a good relationship with local and national governments.
