Strategic Management and Policy Case Study of Harley-Davidson Inc

3025 Words Aug 5th, 2006 13 Pages
Strategic Management and Policy
Case Study of
Harley-Davidson, Inc.
August 19, 2006

Introduction
In 1903, a legendary motorcycle company was formed when William S. Harley and the Davidson brothers, William D., Arthur and Walter, handcrafted their first three motorcycles. In 1909, Harley-Davidson introduced the first V-Twin engine, which is still the company standard to this day. From 1917-1918, the company supplied 20,000 motorcycles for the military during World War I, and during this time major design advancements of motorcycles were made with Harley-Davidson as the leader. By the end of the Great Depression, only Harley-Davidson and Indian (Hendee Manufacturing) were the sole U.S. motorcycle manufactures that survived through
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Sponsorship of Harley Owners Group (HOG) and Buell Riders Adventure Group (BRAG) organizations 0.05 4 0.20 Internal Weaknesses
1. Motorcycle availability 0.20 1 0.20
2. Higher prices than competitors in the heavyweight segment 0.05 2 0.10
3. Change in demographics of purchasers 0.05 2 0.10
4. Narrowness of product line 0.05 2 0.10 TOTAL 1.00 0 3.05

External Analysis

EXTERNAL FACTOR EVALUATION (EFE) MATRIX
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE

Opportunities
1. Increased demand in European and Asian markets 0.10 4 0.40
2. Increase motorcycle sales to female buyers 0.10 2 0.20
3. Developing countries' market demand for heavyweight motorcycles 0.10 2 0.20
4. High gasoline prices causing more motorcycle purchases 0.10 2 0.20
5. Differentiating its customers and customize its offerings 0.10 4 0.40 Threats
1. Competition from rival companies 0.20 4 0.80
2. Tariffs levied by foreign markets 0.10 3 0.30
3. Environmental regulations and laws 0.10 3 0.30
4. Narrow demographic group 0.10 2 0.20 TOTAL 1.00 3.00

Strategic Option Analysis

Strengths
Strong brand recognition and equity – Harley-Davidson is one of the most commonly recognized motorcycle brand

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