SIS Harley Davidson-Case 3
I. Company Profile / Summary (Brief) Harley Davidson Inc. is an American motorcycle manufacturer. Harley Davidson specializes in the sales of heavyweight motorcycles that are designed for cruising on highways. Harleys have a distinct design and exhaust sound that have appealed to a mass market of customers all over the world. Harley Davidson has relied on a strong fan base for sales of their motorcycles and apparel. They currently offer five different models of motorcycle to try and appeal to all different types of consumers. Their specialty is the “chopper” type of motorcycle. Harley Davidson has gone through numerous battles over the years to try and protect its name and reputation.
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There are about 5 companies in the motorcycle industry, Harley Davidson included, that are giants in the industry. Every company is constantly trying to be more innovative and offer higher quality motorcycles to try and lure the competition’s customers away. • Currently, there is a growing demand for motorcycles so completion has been moderated slightly. • Product Substitution from outside the industry • There are many substitutes to the motorcycle industry that pose as a strong competitive threat. Companies like Harley have had to constantly battle the automotive industry for customers. • Power of Suppliers • Like most American manufacturers, Harley has relied on competitive bidding in its search for suppliers. This helped to lower costs for Harley. • Trying to seek cooperative relations, Harley ditched competitive bidding in favor of a preferred suppliers strategy. Harley attempted to work closely with selected suppliers on product management, quality control, and cost containment problems. • Power of Customers • Buyers didn’t have as much bargaining power as the motorcycle industry had many customers. When someone bought a motorcycle, it was only one, and not a large quantity. Buyers had power when it came to choosing which brand to