Case Study: Harley-Davidson
1. What do you think are the company’s (Harley-Davidson) major strengths and weaknesses? Strengths:
* Strong brand name
* Strong customer loyalty
* Operates in 2 segments, Harley-Davidson motorcycles and related products, and Harley-Davidson Financial Services * The HOG ( Harley Owners Group) which has over 1 million members worldwide and is the industry’s largest company sponsored motorcycle enthusiasts organizations * The only American brand manufacture of heavyweight motorcycles Weaknesses:
* High prices
* Harley-Davidson has problems in gaining more market share in some European countries * The ‘bad-boy' image that is generally associated with motorcycles * The dangers coupled with riding a Harley-Davidson
2. What are several of the potential opportunities and threats facing Harley? Opportunities:
* Marketing their products more competitive, especially in the European market * Woman and young people are becoming more inclined to ride a motorbike * Motorcycles are cheaper than cars, so in regions where the economy is low, there is large opportunities for sales * Growing leisure interest in bikes worldwide.
* Growing competition from small companies with lower costs * Some competition have larger financial and marketing resources * Environmental laws are much stricter than what they used to be * Union strikes could cause a loss of production
3. Does Harley have a clear and well stated mission? Please explain why or why not. Yes, the mission statement that Harley-Davidson has is short and sweet, very informative and to the point. They offer a passionate opportunity to customers worldwide. 4. In terms of the generic competitive strategies model, which strategy does Harley appear to be following? Explain why. I feel that Harley is following the differentiation strategy. Harley provides a product of great value more superior to the competition....
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