Harley Davidson: Industry Analysis Porter’s 5 Forces Essay Example

compete with.Throughout the years, there has been an increase on proposed regulations based on land use, amounts of noise that is allowed, age, and pollution. This brings manufacturers to a problem where they have to produce a product that will complete the standards of certain regulations.

Barriers To Entry The industry will deal with several obstacles in this area such as high barriers of entry which will include the cost of the plant, cost of equipment, infrastructure, and marketing costs. There will be decisions that have to be made based on whether the market in that area is mature enough or whether there will be a rapid growth in the market (www. d. edu).

Despite the obstacles obtained, the motorcycle market has made a decision to expand overseas. It will be working on expanding to China, Vietnam, and India market where it plans to have booster sales. They have been working with officials overseas to deal with barriers such as tariffs and stringent emissions (www. boston. com).

Power Of Suppliers Threat of the supplier‘s growing bargaining power is whether the prices are going to increase or not. Motorcycle’s main supply is steel. A major concern is the cost of inputs.The restrictions put on the United States will raise the cost which in turn will result an increase on the price for the consumer. With the demand on product, Harley Davidson is one of the largest purchasers in the industry, and many suppliers have been able to work with the cost of supply (www. nd.edu).

Power Of Buyers Kawasaki, Suzuki, Yamaha are major competitors aside from Harley Davidson. The competitors might produce a motorcycle that might be lighter, less expensive,

or different style, but Harley Davidson has attracted various kinds of consumers.Motorcycles have become popular within the industry to a younger generation and women. The American women are one of the fastest growing consumers buying 100,000 motorcycles per year (www.nytimes. com).

As for the market outlook, there has been an increase of registrations and shipments. The “Baby Boom” generation made it possible for the market to have a major increase on consumer spending for motorcycles (www. nd. edu).

The market has become an attraction for consumers because of the cost and quality of the product. The image that it has portrayed in the industry is a major factor for the market’s success.The strength of its’ marketing techniques which include local and global have made it possible for the consumer’s satisfaction. Threats Of Substitute Heavyweight motorcycles have become popular. It’s a luxury for consumers to own this type of motorcycle. There are a few substitutes that can replace a heavyweight motorcycle in the industry, but other manufacturers such as Honda, Yamaha, and Suzuki are a growing competition with low cost products.

As a result of our consolidated industry, consumers can have a strong effect globally.This can become a threat by a decrease on profitability. Another threat that can affect the market can be on how loyal consumers will be to the “Harley Davidson” image. This can be affected by the price of the product or the marketer performance. When we say performance, we refer to how satisfied was the consumer after a purchase. Did the customer receive good customer service, did the customer leave content or with a doubt after the purchase, or was the sales representative knowledgeable of

the product he/she was selling.(www. management. stir. ac. uk).