Harley Davidson Analysis
Harley Davidson Analysis

Harley Davidson Analysis

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  • Pages: 13 (6636 words)
  • Published: October 24, 2017
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HARLEY-DAVIDSON INC. INTRODUCTION Harley Davidson is one of the largest manufacturers in the United States. It has become a major leader in the Industry for creating the heavyweight motorcycle that has been designed for “cruising on the highway. ” (http://en. wikipedia.

org). In this paper we will discuss how the heavyweight motorcycle market has become an important asset to the industry. We will include the major strategies that have been established and the breakdown of the manufacturing process in the industry. We will be examining the Industry’s prospects and expectations for the present and future based on the motorcycle market.

INDUSTRY ANALYSIS PORTER’S 5 FORCES Rivalry Among Competitors The market for motorcycles has a few competitors that have become a rival competition for Harley Davidson. These competitors include Honda, BMW, Yamaha, Kawasaki, and Suzuki. Harley Davidson has been a dominant factor in the industry, and has increased its’ productivity. (www. management. stir.

ac. uk). The industry will be confronted with problems where consumers will consider the cost and comparison between motorcycles, but the brand name “Harley Davidson” is one of the main strategies that has been used to differentiate itself from other competitors.Based on supply and demand, the industry has to produce products that consumers will purchase and the level of output which means that the market will ensure to have limited amount of production. This will ensure for the products to remain in high demand.

This is proven by manufacturers distinguishing the quality, style, and designs of each product. L


oyalty among consumers is an important factor. For example, the market has the extended popularity with “motorcycle enthusiasts” in the market. Government regulations are another form of rivalry that the manufacturers have to 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 th

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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).

INDUSTRY ANALYSIS CONCLUSIONIn determining the industry’s attractiveness, we have analyzed the rivalry among competitors, barriers to entry, power of suppliers, power of buyers, and the potential threats that can impact the market. Overall, we have concluded that there is a low threat of entry from the competitors, there is a high rivalry in the market, and few substitutions can affect the demand of heavyweight motorcycles in the industry. (www. nd. edu.

) This can be resolved by remaining attractive to consumers, keeping manufacturing costs low, and having the industry focus on market distribution and availability. COMPANY ANALYSIS COMPANY INTRODUCTIONManufacturing Company Harley-Davidson is “engaged in a manufacturing venture that can add value to the motorcycle business. ” (www. harley-davidson. com) Global Strategies Harley-Davidson has alliances with two big companies: Shell Oil Products who is their exclusive fuel sponsor and Ford.

Also, they are located abroad with a dealership in China. (www. harley-davidson. com) BUSINESS STRATEGY Mission Harley-Davidson’s mission is to “fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.

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