Thus, it is a very attractive opportunity for Harley to capture these markets without much delay. • Harley has its own set of loyal and cult followers which also attracts young customers. Thus, the company can launch low end heavyweight motorcycles which will help the company to expand its customer base. • Harley can use its increased marketing efforts to further increase the customer base by marketing towards untapped segments as females and youngsters are showing more inclination towards cruise bikes. For example, In 2006, women accounted for 12% of all bike sales.
This is also used in business to understand the features of a company’s industry. A detailed SWOT analysis of Harley Davidson’s features is discussed below. Strength: Harley Davidson’s strength lies in the fact that it has been in the business for more than a century now and have created brand image. The other strengths of Harley’s industry are their strong base of customer and being the expert producers of chopper motorcycles. Weaknesses: The weakness of the industry of Harley Davidson can be broken down to three parts.
They just started making some bikes in the low cost category. Harley-Davidson has problems in gaining more market share in some European countries (That’s one of the main markets for Heavyweight motorcycles outside U.S). They still didn’t capture the Eastern countries market. The presence of Harley Davidson in this region is negligible. Required production is not met, analyzing the future of Heavyweight motorcycle market IFE MATRIX: KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE STRENGTH The standard and performance segment of Harley Davidson make up 70% of the European heavy weight motorcycle market 0.09 3
Focus on Generation Y by Product development-As we know that Younger generation is kind of untapped market for Harley-Davidson that has a global and local potential. If the company decides to choose this strategy they can develop a new sports bike especially designed for the young generation (Include customer friendly attributes like fast speed, cheaper prices, light weight and sleek looking motorcycle and yes not to forget elemental dark colors) that will help touching the “black world” of the younger generation. Advantages-It will appeal more to Generation “Y” and pose a threat by competing in the same category as their competitors (BMW,Suzuki and Yamaha) Being a new product price point can be set according to the market needs which allows more people to own brand like Harley Davidson which was not possible before. Disadvantages-This strategy will lose their existing loyal customers, as they would not see any value the new product. Another drawback could be that the lower priced motorcycle will actually dilute the Harley-Davidsons exclusivity
3.4. Strength and Weakness Analysis 3.4.1. Strengths -Well established and known brand with a glorious history -Associated with charity and social welfare -Customer loyalty once a customer buys a Harley he is part of it -Custom bikes brings in significant amount of revenues. -Strong marketing efforts in the US via national rallies, events, dealer promotions, enthusiast groups, rides and biking academy. -Broad product portfolio including standard, performance and custom bikes -Ability to compete globally “Harley’s traditional touring bikes represents only 5% of European market.
These factors have allowed the heavyweight riders to build up a mystique culture around the brand name Harley Davidson. The below mentioned figure explains how the above mentioned factors will influence the growth and success of Harley Davidson. Core Competencies The Harley Davidson’s operations strategy consists of core competencies which allow them to thrive in their success. Those can be listed as follows. • The implementation of modern systems of operations to survive the great depression and later to make it the reason for successful product line.
Harley Davidson’s brand actually sells much more than just motorcycles and spare parts. It has a range of products comprising helmets, jackets, sunglasses, gloves, jewelry, pants, watches, T-shirts, among others. However, the main thing this company offers customers is its brand symbolic’s universe, which is transferred to customers’ personal and collective lives. The marketing communication strategy carried out by this company makes customers believe if they buy Harley Davidson’s motorcycles, clothes, jewelry, etc., they will become part of a special and selected group of motorcyclists, able to live a desired lifestyle by using the concept of this brand. Thus, customers can take part, as well as benefit from the symbolically created Harley Davidson’ style and culture.
An unmet need or want that Hooters can fulfill is by offering a taxi service for its customers. Hailing a taxi in this market is a daunting task and it is something that could make Hooters stand out from its competitors. Hooters can package their product differently by changing the billboards from a young woman in short shorts and a tight shirt to possibly a family dining with the young girl in the background. This could appeal to the family oriented customer base but also the young male clintel. Hooters can not take advantage of historically low interest rates to refinance debt because they do not have debt.
Honda was more family oriented and communal, smaller, quieter, faster and more important less-expensive. By the time the market was more oriented to first time buyers and 80% percent of the sales accounted to first time buyers, the Japanese started acquiring the market and they accounted to more than 85% of the motorcycle sales in the U.S. Harley Davidson believed in their own methods and was not ready to go any drastic change in their organization in the early stages and they suffered a huge setback in the industry and the sales, which was beginning to being dominated by Japanese companies led by Honda. The Japanese companies were skilled at mass-production. Harley Davidson did not make any unique technological innovations in this period. The company went public after 60 years, and was also taken over friendly by AMF, a conglomerate looking to diversify in leisure
By 1911 Harley had 150 at least of other brands of motorcycles competing for their share of the market. The public liked the Davidson cruiser but the cruiser did not have a racing past. Harley Davidson Timeline In 1901 William S. Harley completes a blueprint drawing of an engine designed to fit into a bicycle. In 1903 Harley and Arthur Davidson made available to the public the first production of a Harley-Davidson motorcycle. The bike was built with a 3 by 1/8 inch bore and a 3by ½ inch stroke.