What Is The Five Forces Of Harley Davidson

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In the year 1905, William Harley and Arthur Davidson, established Harley Davidson. Within two years the company already sold 50 motorcycles. With one full-time employee, the company filed for incorporation in 1907. From the beginning, Harley Davidson bikes were a huge success. It was when Japanese players like Honda, Suzuki and Kawasaki entered the US market in the 1960s, the leadership position of Harley was threatened. Harley Davidson’s market share started to decline and soon American Machine and Foundry (AMF) brought the company. However, AMF’s management could not add much productivity and growth to Harley Davidson and later in 1985, the company was bought out by Harley Davidson’s management through a management buyout procedure. Harley Davidson was able to turn around successfully through many strategic initiatives and strong management leadership.

1.Key elements of Harley Davidson’s industry:

The features of Harley Davidson’s industry can be studied through Porters Five Force Model and SWOT Analysis.

• Porters Five Force Model

Michael Porter designed the Porters Five Force framework for understanding competition at work in an industry, and what drives the way economic value is divided among industry actors. Let’s us the five-force model to analyse Harley’s industry.

Rivalry: This identifies the impact of other competition in the motorcycle industry environment. Harley had a strong force in competition rivalry as there were high number of firms and substitute
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