Swot Analysis Of The Motorcycle Industry

2596 Words11 Pages
Executive Summary 2
1. Introduction 2
2. Business Environment Analysis 3
2.1. Motorcycle industry 3
2.2. Competitive Business Environment 4
2.3. Business opportunity and threat Analysis 4
3. Firm Level Analysis 5
3.1. Firm Financial Status Analysis 5
3.2. Current strategy and its effectiveness 5
3.3. The firm resources, capabilities and competitive advantage. 5
3.4. Strength and Weakness Analysis 6
4. The competitive environment 7
4.1. SOWT Analysis 7
4.2. Key characteristics of environment 8
5. Key issues and selection of strategy 8
5.1. Issues Harley is facing 8
5.2. Alternative Strategies 9
5.3. Selection of the most appropriate strategy 9
6. Conclusions and Recommendations 10
6.1. Factors that may threaten strategy 1 10
6.2. Recommendations 10
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-Environmental concerns could kick in laws not favorable for Harley.

3. Firm Level Analysis
3.1. Firm Financial Status Analysis
Liquidity Ratio
In 2008 -1.37
In 2007 -1.72
In 2009 -1.99
The liquidity ratio is declining which is not a good sign for the business
Earnings per share has fallen from 3.93 in 2006 to 2.79 in 2008. Net income has also fallen sharply in this period from over 1 billion to 654 million.

3.2. Current strategy and its effectiveness
-Harley has built a strong following by selling not just the bike but the experience of owning a Harley-Davidson bike. This has made the brand image very strong and such that die hard bikers would want to identify themselves with it
-The Harley Owners Group is a million strong community and is growing. This automatically makes a new Harley owner a part of a large and vibrant group.
-Harley allows customization of bikes according to the customer’s requirements. This allows for charging of premium prices and also captures a market where customers want a tailored bike that suits their personality.
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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. Harley is competing in the standard and performance with its expanded offerings of Harley-Davidson XR1200 and NIghtster, the Buell 1125R and MV models.”
3.4.2. Weaknesses
-High pricing of the bikes
-Competitors are diversified, Harley is not
-Marketing efforts limited to middle aged white men
-Heavily dependent on US market
4. The competitive environment
4.1. SOWT Analysis 4.2. Key characteristics of environment
We will make use of the PESTLE tool for analyzing the environment the company is operating

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