Case Study Harley Davidson

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1. Critically evaluate the key features of Harley Davidson’s industry?
Harley-Davidson built its first motorcycle in Milwaukee in 1903. Author Walter Davidson and Bill Harley are two partners developed motorcycle in their family building (garage). The first motorcycle developed is single cylinder motorcycle in 1903 but the company actual export sales began from 1913. More than 20,000 Harley-Davidson motorcycles were used during world war 1. Harley-Davidson gone through tough times and competition in its long way of success. Porter’s five forces acting on Harley-Davidson industry:
Rivalry competition:
• During 2001, 651+ CC motorcycle of Harley-Davidson were registered in North America by 43%.
• There is rivalry among the manufacturers of same
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2. Critically assess the change/transformation process that took place in Harley Davidson?
Transformation Process:
Harley-Davidson is the bike manufacturing company which manufactures luxury motorcycles. The present position of Harley-Davidson in the market is the struggle over 100 years by the company. Where they deled competition with many companies and transformed many times in many ways and gained brand value. The transformation of Harley-Davidson’s company began when there is a rapid fall of their market shares during the span of 10 years of their 850+ cc motorcycles from 83% in 1973 to 23% in
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Similarly, Harley-Davidson has its long way where it crosed hurdles to become one of the successful motorcycle manufacturing company. There are many decisions made by the managers of Harley-Davidson where few worked well and few which did not work for the organization. Using SWOT (Strengths, Weakness Opportunities, Threats) Analysis there is some extra initiative they should do.

To achieve the objective, identifying the internal and external key factors are important. There are two main categories in SWOT analysis:
Internal Factors – This represents strengths and weakness
External factors – This represents threats and opportunities by external environment

Strengths of Harley-Davidson:
• Cash flow is very high
• The position and brand image in the market is strong.
• Motorbikes and Financial services are the two business segments of Harley-Davidson.
• US has the only major company that manufactures motorcycle is Harley-Davidson.
• 50% of the US markets is been represented by Harley-Davidson.
• Harley-Davidson made $13 billion market.
• Evince quality of product.
• Customization is offered to its customers by Harley-Davidson.
Weakness of Harley-Davidson:
• Harley-Davidson only produce heavy/luxury motorcycles.
• As the prices are high it fails in attracting middle class
• Credit rating is poor (BBB+)
• Targeting particular category of customers.
Opportunity of
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