Harley Davidson Strategic Analysis Essay

1962 Words Nov 24th, 2012 8 Pages
BUAD 4980
Strategic Management
REPORT #1: STRATEGY ANALYSIS
Harley Davidson
Zach Jones

1. INTRODUCTION

This project is one of three reports I will complete as part of the strategic analysis of Harley-Davidson. This first report focuses on strategy analysis and includes the following sections. First, the major concepts related to the competitive advantage analysis will be defined. Second, those concepts will be applied to the case of Harley-Davidson in order to analyze its competitive position in the global automobile industry. The analysis of Harley-Davidson will be followed by its evaluation to identify the major problem the company is facing and a proposed solution to overcome
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3.1. SWOT analysis: The SWOT analysis for Harley-Davidson will begin with a look at the company’s external environment. This section will help to identify key opportunities and threats in the general environment as well as in the industry before analyzing the company’s internal strengths and weakness. Harley-Davidson currently has two key opportunities within their industry. These opportunities are the low threat of entry and the bargaining power of suppliers. For years, Harley-Davidson has been the most reputable heavy motorcycle maker in the world. Due to this high level of reputation and the, the capital needed to enter the market this is an opportunity for Harley-Davidson to continue to hold on to its current market share. In addition, because of Harley-Davidson’s size, smaller parts suppliers have little power to set prices of heavy motorcycle parts. These industry opportunities help Harley-Davidson to create value and expand on its competitive advantage. General factors such as a rise in demand in international markets as well as a change in market demographics have also created opportunities for Harley-Davidson. Specifically, Demand in the European, Asian, Australian, and Latin American markets is on the rise and is now larger than the U.S market for heavy weight bikes. Females and teenagers are also showing an increased interest in riding

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