¶ … Companies HD
Threats for Harley Davidson
Opportunities for HD in global market
HD and Lehman Trikes
Harley Davidson (HD) is heavy motorcycle company that manufactures and markets motorcycles above the capacity of 700 CC of engine capacity. HD is an American company and is a world leader in heavy motorcycle industry. Based in Milwaukee, Wisconsin, the company reported having annual revenue of $5.3 billion in 2011 (Harley Davidson, 2011). Gradually, the number of competitors in the industry has increased with Japanese, European, and Chinese manufacturers gaining foothold in American market. Since the domestic market share is increasingly under threat from international competitors like Suzuki, Honda, and Ducati, the company must assess the external threats to leverage its internal strengths to benefit from the opportunities.
Threats for Harley Davidson
There are several threats in the external environment of HD that may impact the business of the company in medium to long-term. The threats being presented by the external environment can be analyzed through an external analysis tool of Porter's five forces model.
Threat of new entrants: Moderate the threat of new entrants in the heavy motorcycle industry is moderate fro HD as the industry in capital intense and customer loyalty is achieved by investing number of years in the industry. Suzuki, Ducati, and Honda are the companies that directly compete with HD and these companies have been successful in reducing the market share of HD in the U.S. The product of this industry is heavy motorcycles and shall remain growing due to change in trends in the European and Chinese manufacturers of heavy motorcycles.
Threat of substitutes: There is an increased threat of infiltration of substitute products as a replacement of HD motorcycles as high performance machines. There is increased competition from within the industry...
Harley Davidson External Analysis Harley Davison's External Analysis PEST analysis Political Economic Socio-Cultural Technological Porter's five forces Harley Davidson is an American motorcycle manufacturing company that sells motorcycles above 700 cc engine capacity. The company was founded in 1903 at Milwaukee, Wisconsin. With approximately $5.3 billion in Fiscal Year (FY) 2011 as revenues, the company is now facing tough challenges in the international motorcycle market as new companies have entered to share the market fortunes (Harley Davidson, 2011).
Harley Davidson 5304 Harley-Davidson Harley-Davidson Inc. is an American motorcycle manufacturer specialized in heavyweight cruiser and chopper style of motorcycles with over 700 cc. Founded in 1903 and headquartered in Wisconsin, United States, Harley-Davidson is one of the two major American motorcycle manufacturers and known as a classic American icon. Since its inception, Harley-Davidson has been setting remarkable records with its top quality motorcycles for miles per gallon, speed, racing, distribution strength,
Strategic mergers and acquisition The company can form strategic mergers and with companies that offer related and complementary products and services. The aim is to synergistically acquire some strategic advantages that may boost its sales. E-marketing, e-commerce and e-business The company can employ e-marketing-commerce and e-business to boost and streamline its marketing function, sales functions and logistics respectively. Recent Corporate governance issues and how they ought to be handled by Harley Davidson Restriction on dealer
HOG There are many opportunities for Harley Davidson moving forward in the motorcycle industry. Historically, Harley Davidson has sold most of its bikes in the United States and has enjoyed success almost exclusively in the heavyweight and superheavyweight categories. This leaves a lot of opportunity for Harley Davidson to capture other markets, if it can find the right branding and niches. There are also internal opportunities to lower costs and improve
Harley Davidson is somewhat hamstrung by a narrow product range and demographic, but there are some good opportunities for the brand. The biggest opportunity lies with the millennials. HD is a brand that relies on a long-term relationship with its customers to drive revenues, and this occurs over a 20-40-year period in their lives. The company's recent run of success was based on the baby boom generation, and while that
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