Harley Davidson Case Analysis Essay

1810 Words Apr 13th, 2008 8 Pages
Despite their conception in 1903, Harley-Davidson and the motorcycle industry as a whole didn’t really take off until after the Second World War. Many people rode motorcycles during the war, with Harley-Davidson themselves supplying almost 90,000 motorcycles for the U.S. military during this time. Many veterans chose to purchase motorcycles upon returning home, as they enjoyed riding during the war and wanted to continue riding in their civilian life. This generation known as the “baby-boomers” quickly became the main target audience for many of Harley-Davidson’s marketing efforts. With sales increasing and the industry growing, many “motorcycle clubs” and “rallies” were introduced. Unfortunately, due to the lewd behavior displayed by …show more content…
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.

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