Industry and Company Analysis of Harley Davidson Inc. Essay

2068 Words 9 Pages
Industry and Company Analysis of Harley Davidson Inc

William Harley and Arthur Davidson started Harley Davidson Inc. in 1903 when they were intrigued by the newly invented concept of motorcycles. The pair was so moved by the concept they decided to begin manufacturing their own motorcycle which will would be unique by many measures (Oosterwal, 2010). Since the company’s onset; innovativeness has been at core of the firm’s business strategy, and the business has willfully followed this strategy. From their inception Harley Davidson has enjoyed an active path of enormous growth and gradually emerged as the most recognized motorcycle producer in North America. In fact such is the growth story of the firm, a company of its size has
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The significance of this prestige surrounding the brand can be verified by associations, such as, Harley Owners Group (Oosterwal, 2010). Harley Owners Group, which was formed in 1983, is an attempt to provide Harley Davidson owners an opportunity to share their passion for the brand with others. Success of this club has become so great, it now has an international flare; with members ranging from North America, Europe and Asia. The global presence and success of the Harley Owners Group flow hand and hand with Harley Davidson’s second most critical strength---which is their international presence. Apart from their worldwide supply chain network, the relationship Harley Davidson with its suppliers can also be regarded as one of the key strengths (Teresko, 2002).

Weakness: Harley Davidson’s high brand value and the prestige adhered to it has forced the management to set a high price for all of its products, which may be regarded as a weakness for the company. Being in the high price spectrum hinders the company’s ability to compete in the general motorcycle industry where price tags of other companys’ products can be much lower (Chan, 2010). Competing only in this fixed target segment the capacity for market expansion is very limited which in the near future could put the question of sustainable growth in some doubt.

Opportunity: Increasing popularity of the Harley

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