Harley Case Analysis

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Harley-Davidson Case Analysis

MGMT 4290
Professor McGowan

Keiven Cosgriff
I. CORE PROBLEM

Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt.

II. S.W.O.T. ANALYSIS
Strengths
Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture.
Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product.
Third, Harley derives strength from its strong market position, in 2004, Harley controlled 48.9% of the U.S. and Canada market. Further, Harley has produced 37% average annual gains since its 1989 IPO.
Fourth, Harley has demonstrated a consistent skill to innovate, allowing the company to be in business for over one hundred years. For example, in 2005 Harley launched a small inexpensive bike called the “Street-Rod,” which was a radically new bike that attracted a new…...

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