Harley Davidson Case Study

Register to read the introduction… When looking at the rivalry from competitors, Harley-Davidson is doing very well domestically, controlling nearly fifty percent of the market share within the United States. In terms of their global positioning, Harley-Davidson has fared fairly well with a strong positioning in the Asia-Pacific market. In the European market however, larger motorcycles are not used as frequently as are smaller and more efficient bikes, leading to a lower market positioning. When analyzing the potential new entrants to the motorcycle industry, one must look at it both from a domestic and global perspective. Within the United States, the Harley-Davidson brand is relatively safe from competition due to a strong brand loyalty that has been built up throughout the last century. There is fear that the brand will lose many of its customers because of the aging baby boomers, however the brand has enough recognition to survive the decline of its primary consumers. On a global scene, Harley-Davidson faces many challenges because of the different market trends overseas and the stiff competition it faces. In both the European and the Asia-Pacific market, most people prefer smaller and more economic bikes such as scooters, mopeds, or sleeker performance bikes. The main competition the Harley-Davidson brand faces comes from Honda, BMW, and Yamaha, as these companies have all adapted to the needs of these overseas markets. When analyzing the substitutes available in the motorcycle industry, there is strong competition. The main substitutes available are cars and many people choose these over motorcycles because they are proven to be safer and also they provide protection from the weather elements which might make it difficult to drive motorcycles. Another substitute which is available to consumers is the different types of recreational vehicles. These include RVs, motocross bikes, all-terrain …show more content…
In the competitive strength assessment which includes such things as breadth of product line, market innovation, and brand recognition, Harley-Davidson holds a high position in terms of its competitors with a score of 43 as opposed to that of BMW (39), Honda (37), and Suzuki (34). When analyzing Harley-Davidson as a company using a SWOT analysis, one can see that the strengths clearly outweigh the weaknesses. For Harley-Davidson, strengths include customer loyalty, connection to freedom, and marketability. The connection to freedom is a big part of the Harley-Davidson strategy as well, as they seek to offer people a sense of exhilaration and independence on the road. These strengths are opposed to weaknesses which include an over-availability of products and a negative image of most bikers in the mid-1900’s. The opportunities for Harley-Davidson are ever-present with the Buell division/product line. If Harley-Davidson sought to do so, Buell Motorcycle could easily become a household name within the motorcycle industry carrying a strong line of performance and speed bikes. Another opportunity is a possible merger with Ducati, which like Buell Motorcycle offer a wide variety of speedier and sportier bikes. One possible threat to Harley-Davidson is the aging of the baby-boomers. It is still unknown just how much of an impact this will have on the company, but it is sure to have some