Harley Davidson Case Study Solution

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Introduction A recent external and internal environment change has given Harley-Davidson both threaten and opportunities. The thorniest problem Harley-Davidson face is shrinking a market, caused by the reduction of profitable customer, slow development of the potential customer as well as the intense competition of the heavyweight motorcycle market. However, the increasing demand of emerging countries has offered Harley-Davidson the opportunity. Factors such as retaining the existing profitable customer and developing the potential market will be received emphasis in future strategic decision. However, corporate strategy of profitable market and potential market vary widely because of different demography, consumer behaviour and the regional difference. With the relatively small scale company in the motorcycle industry, customer segmentation and product development will be a significant point. The purpose of the case analysis was to discuss the causes of a shrinking market as well as provide a solution. The definition of the problem The major problems which Harley-Davidson needs to address is the shrinking market. Market growth will be stagnant or decline if Harley- Davidson does not resolve the problems. The reasons …show more content…

The younger generation is predicted to be a primary profitable customer in the future decade, who prefers the lightweight motorcycle with small size, fast speed and innovative design. Unfortunately, the skill and technology of the lightweight motorcycle possessed by Harley-Davidson have lagged behind the competitor. Apart from that, the shortage of the economic scale will be an obstacle, when Harley-Davidson competes with Japan 's companies that promote the lightweight motorcycle with lower price. Moreover, the brand image- American lifestyle- is not accepted by the younger group and emerging market. (Harley-Davidson, Inc., May 2012,

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