4199 Final Case Study Essays

Submitted By vovka
Words: 848
Pages: 4

NAME: Vlad Albu

Management 4199: Final Case Study
Harley-Davidson Inc. 2006

1. Based on facts presented in the case, perform a SWOT/TOWS analysis on the international situation facing Harley. (50pts)

SWOT Analysis

Strengths.

Harley Davidson has strong brand equity and is well established in the consumer’s mind
Harley Davidson has a strong financial position and the ability to provide financial assistance to their consumers
Offering both new and used motorcycles broadens the price range for shoppers
Large club (HOG) with hundreds of thousands of members

Excellent customer service. Harley began to actively recruit and develop dealers in Europe and Japan in order to improve their human relations

Harley-Davidson has many varieties to offer their customers thanks to joint ventures and buyouts such as Buell Motorcycle

The European demand for Harley Davidson is the highest in the international market and represents the single largest motorcycle market in the world
The international heavy weight market is growing and is now larger than US heavyweight market
Harley Davidson enlisted in the Fortune 500

Weaknesses.

The dependence on domestic sales limits could have a negative impact during economic hardships
Narrow product line, limiting the markets to operate in
High prices for new Harley Davidson motorcycles could deter some potential customers
Foreign competitors

Foreigners tend to view motorcycles as a means for inexpensive transportation, not as a way to belong to a group, such as the American “HOG” club. Large, expensive custom bikes will not be as marketable on foreign markets as a smaller, more economical model

Slow production times, foreign customers purchase motorcycles to fulfill the need for convenient, low-cost transportation, they would likely want their product to be ready available
Poor marketing techniques that is not attracting new customers in the international market
Many people also fear of being classified as ‘hooliganism’ in society if they started cycling

Opportunities.

Expand the product line-up and continue with innovation in products
Opportunities into different market segments because of the change in the demographics of Harley Davidson
Improvement in products, sales, or reducing in costs because of the restructuring plan

There are many untapped markets that Harley-Davidson can promote products. With high gas prices being a concern worldwide, the company can address the need for more economical transportation

The strategy of expanding their product line through joint ventures, buyouts and by introducing new products to their customers can be tailored to fit the needs of foreign markets

The demand for Harley Davidson is the highest in Europe and India on the international market

It must market their products more competitive, especially in the European market
International market for heavy weight bikes and bicycles is much larger than the U.S. market
Increased use of internet

Threats.

Competition(Suzuki, Kawasaki, Honda, and Yamaha) is constantly developing and evolving. Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.
Substitute products in the marketplace may affect sales.
Regulation, policies, taxes, tariffs, and other external issues are constantly changing.
Emission standards for motor vehicles are changing and may soon affect motorcycles.

Chance of uprisings, overthrown governments, or other conditions in foreign markets. Harley must keep a close eye on national conditions and keep a good relationship with local and national governments.

Smaller, lighter,…