Harley Davidson Case Analysis

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Harley-Davidson Motor Company was founded in 1903 by William Harley and Arthur Davidson. The company has been publicly traded since 1987. It has two major divisions - Motorcycles and Related Products and Financial Services (Hitt & Ireland, 2014). It primarily produces standard, custom, touring, and performance motorcycles, branded clothing and accessories and, provides financing for both retailers and individual consumers. The company operates across borders in the European market and is expanding into the Asian market as well (Hitt & Ireland, 2014). Although, the company has survived through recessions, wars, depression and stiff competition, the market leader in the production of heavy-weight motorcycles faces several challenges. The following paragraphs discuss Harley-Davidson’s external environment, core competencies, strategies and performance outside the U.S.A. The threat of new entrants in the motorcycle industry has been historically low due to the large amount of capital required to build plants and dealerships. Harley-Davidson has already established themselves in the industry with established channels for distribution which allows them to enjoy economies of scale. In regards to political factors, there are major political concerns that Harley-Davidson faces including import/export rates for industry entrance. Furthermore, Harley-Davidson faces moderate threat of substitutes due to the brand recognition and loyalty that the company enjoys. However, in recent years,
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