Case Study: Harley-Davidson, Inc.: Troubled Times Increase H-D’s Reliance on International Sales.
Answer: H-D using “Differentiation Strategy” by offering its heavyweight motorcycle through the distinctive designs. H-D are also a leader in the heavyweight motorcycle manufacturers industry and it has more than 100 years old in this market, also its American icon make H-D become traditional brand. Due to H-D becoming the traditional brand in American made version, the consumers perceive that H-D mean quality. Consumers will choosing H-D products because of their high quality products and demand …show more content…
Force 4: Buyer Power Buyer power is one of the two horizontal forces that influence the appropriation of the value created by an industry (refer to the diagram). The most important determinants of buyer power are the size and the concentration of customers. Other factors are the extent to which the buyers are informed and the concentration or differentiation of the competitors. Kippenberger (1998) states that it is often useful to distinguish potential buyer power from the buyer's willingness or incentive to use that power, willingness that derives mainly from the “risk of failure” associated with a product's use.
Force 5: Supplier Power Supplier power is a mirror image of the buyer power. As a result, the analysis of supplier power typically focuses first on the relative size and concentration of suppliers relative to industry participants and second on the degree of differentiation in the inputs supplied. The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power (Porter, 1998). Bargaining power of suppliers exists in the following situations:
3. How does H-D compare to its competitors?
Answer: H-D compare to its competitors based on the number of