Harley Davidson: Strategic Change

In: Business and Management

Submitted By tabish
Words 1459
Pages 6
Our report handles the problem of how Harley Davidson which produces traditional bikes can maintain its position in this changing environment. Company Information: Harley Davidson’s EPS has been growing at a very strong rate for the last decade. Since 1996 the company’s EPS has grown at an extremely fast 22 % annual rate. Industry Structure: Decisional Problem: Decision Alternatives: Alternative One - Continue as before / Status Quo Alternative Two – Reposition Buell Alternative Three – Renewing the Harley Davidson Brand Alternative four – Selling Buell Statements: Vision Mission Question 4 Internal and External analysis of Harley Davidson Harley Davidson appears to be doing financially sound. This company has been around over a century now and it continues to have a strong presence in the world market for heavy weight cruisers. We will perform a strategic analysis to identify HD`s strengths, weaknesses and opportunities and threats. External analysis Porter’s five forces Internal Rivalry: The market for heavyweight motorcycles is fairly concentrated. There are only four major firms producing these motorcycles. In addition to HD the other three are Yamaha, Honda and Suzuki. HD has been a dominant player in the market with a market share of over 50% in the past. Today this market share has fallen to about 50% due to other manufacturing companies expanding their motorcycle production and through heavy marketing especially to American consumers. One of the reason why HD is losing its market share is because Japanese manufacturers have begun to incorporate popular design features of HD`s products into their own and selling them at lower prices. These days’ people are less concerned about quality of the product than they were in the past. As this happens HD is relying more and more on brand loyalty. However the…...

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