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Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the company’s new revenue in year 2010. Harley Davidson has often set the benchmark for other motorcycle manufacturers through the years. By the end of World War I, 20,000 cycles were used in military duty and till date it is a favorite for the US army. Harley Davidson has continued to install the same V-Twin engine it invented years ago. It has mostly concentrated on aesthetic changes and ignored the technical changes that were required in the modern era. The critics say that Harley Davidson should innovate and get modern updations to its models. Whereas if we listen to the Harley Davidson loyals, they would insist on maintain HD’s Heritage.
Strategic Analysis of the External Environment of Harley Davidson:
The strategic management analysis of Harley Davidson will require some tools like PESTEL analysis, SWOT analysis, BCG matrix, Porter’s Five Force analysis, Key success factors, Industrial Life Cycle, Competitor Analysis, Environment basics and Degree of Turbulence.
PESTEL Analysis: The PES...
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...e Harley Davidson heritage to the rest of the world.
REFERENCES:
Harley Davidson, Strategic Analysis . 2013. Harley Davidson, Strategic Analysis . [ONLINE] Available at:http://www.slideshare.net/MahmoudMHamid/harley-davidson-strategic-analysis. [Accessed 16 December 2013].
Harley-Davidson - Wikipedia, the free encyclopedia. 2013. Harley-Davidson - Wikipedia, the free encyclopedia. [ONLINE] Available at:http://en.wikipedia.org/wiki/Harley-Davidson. [Accessed 16 December 2013].
Harley-Davidson Strategic Analysis. 2013. Harley-Davidson Strategic Analysis. [ONLINE] Available at:http://www.scribd.com/doc/12517953/HarleyDavidson-Strategic-Analysis. [Accessed 16 December 2013].
harley davidson. 2013. harley davidson. [ONLINE] Available at:http://www.slideshare.net/ercan_1244/harley-davidson-12030842. [Accessed 16 December 2013].
When it comes to cruising, lowriders star in the show, and have for the last thirty years. "Lowrider" signifies any automobile, from trucks to cars to motorcycles, customized to ride low to the ground. The asphalt-scraping suspension isn't the only alteration; the cars often sport elaborate paint jobs, expensive wire rimmed wheels, plush upholstery, and tough hydraulics systems. The cars' owners, also called lowriders, display their cars by cruising slowly down the street or exhibiting them at car shows. Despite the time and money put into a lowrider, lowriding is not just about the cars. It is also about family and community, as Sandra Teran explained to me when I interviewed her. Sandra is prominent in the lowriding community, and driving up to her home I could see why. Three classic luxury cars sat in the driveways, their meticulous paint gleaming. The love for all things classic extends to the inside of her home; two jukeboxes stand by the front door and a photo of one of her sons wearing a zoot suit hangs on the wall. I arrived a few minutes early for our interview, and Sandra had gone to pick up one of her grandchildren, so I sat and waited.
Needless to say, that experience has changed over time. It began from a simplistic design in 1904 as a motorized bike. However, as time progressed it brought about the introduction of the biker gang era. These were the bad asses image riding their heavy bikes down the highway, rebels who refused to give in to society’s pressures. It was the time of the Hell’s Angels, with their patches, long hair, and untidy beards that became the symbol of freedom on the road. They created the mantra of the bad ass dude on a bad ass American bike and no one was gonna tell him what to
In this argument I will be focusing on Fox Car Rental, Inc. as the basis for a systematic analyses of the organization, as I identify the strength, weaknesses, opportunities, and threats to the existence of the organization and its operations. Also, I will be providing three pitfalls to strategic management. In order to facilitate my argument, the use of a strategic matrix analyses will be utilized.
The next ratio we will review is gross profit margin. Gross profit margin (GPM) measures the percentage of each sales dollar remaining after the firm has paid for its goods. The higher the gross profit margin, the better. Harley Davidson's gross profit margin was 35.08% for 2001, 34.09% for 2000.
Harley Davidson’s approach to the manufacture of motorcycles creates value as raw materials evolve into sellable products. The 40,000 square meter plant in Kansas City, Missouri is laid out in a fashion that permits the backward integration of components within the production facility. From the fabrication of parts to the production of engines onsite, a single V-Rod is built by the 1,100 employees of this factory in less than 3 hours from start to finish.
Ford Motor Company sales and revenue over the last three years has fluctuated tremendously, 2005 was 176.8 billion, 160.1 billion and for the year of 2006 and 172.5 billion for 2007. The current return on investment is -10.4 as of 2007.
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
This assignment focuses on internal analysis of Ford Motor by doing SWOT analysis and external analysis by doing Pestle analysis. The assignment also focuses on the strategic performance analysis on the basis of Porter’s Diamond Model, BCG Matrix and Blue Ocean Strategy. SWOT analysis showed that, Ford Motor has strength on heritage, global aspect, brand name, innovation etc. It has weakness on market share, global competition and affected by economic recession. The opportunities lie on small cars, fuel efficient cars and production market in India and China due to lower cost. Threats are coming from high price of petrol, raw material, labor and competition from other companies. Pestle analysis showed that, Ford maintained worker friendly company and able to cope up with financial crisis during recession. They focused on advertisement. Also go for joint venture with Microsoft to bring new technology in the car. They produce environmental friendly cars. A...
During the 1970's, HD was facing a decline in market share due to increased competition with Japanese companies. By phasing out weak models, becoming more selective, and limiting sales and promotions, HD was able to carve out a niche in the marketplace which it enjoys today. Now again faced with a period of decline, HD is relying on its newly adopted marketing objectives. First, HD needs to expand its potential customer base to include enthusiasts and non-enthusiasts young males, and females into buying HD motorcycles over any other competitor. This thought is accomplished through the introduction of the VRSC’S, and the lower and narrow Sportsters, Dyna’s, Softail’s and positioning them in the market to a younger demographic. Secondly, HD needs to position the VRSC’S, Sporster, Dyna and Softail to also appeal to first time buyers of motorcycles. HD's strong brand identity can help pull in new clients.
...d our money in each segment. For example, in the first year we were given the option to spend $500,000 to invest in advertising. We decided on using all $500,000 which gave us the highest awareness and shareholder value for that year. As the rollovers continued we made a few errors in terms of financing our budget for marketing, which mirrored in our attempt to sell the highest amount of bikes.
Since Harley-Davidson is already a big player in cruise market, to be profitable in this sector might be time consuming and difficult for Ducati. Also, Harley-Davidson has a loyal customer base which might make it tougher for Ducati to attract more customers towards its side.
The motorcycle industry offers products which can be viewed as luxuries or wants as opposed to necessities. When concerning Harley-Davidson, most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and off-time instead of during the work week. This implies that the motorcycles serve for recreational purposes and thus are an item which can be expendable at times. This has hurt the industry recently with the slight recession the United States economy is facing. Another interesting thing to note about the motorcycle industry is the different appeal bikes carry in different global regions. In the United States for instance, Harley-Davidson has had much success because of the market trends and tastes people enjoy. Harley-Davidson has benefited from a U.S. market which enjoys casual and recreational riding. This isn’t necessarily the case overseas, as in Europe the trendy pick is a sleeker street bike, with a focus on speed and handling as opposed to power and comfort.
In order to provide a deep and complete analysis of the Motorcycle industry we provide an extended Porter’s five forces framework, because as we know this framework has several flaws and we have reinforced it with the factors we think affect the industry and alter its profitability.
Italian manufacturer Piaggio ranks as one of the world’s top four players in its core business. It has consolidated leadership in the European 2-wheeler market. Piaggio should not miscalculate its competitors. Competition in the industry is very powerful, not only nationally but internationally as well. This is due to two well-established companies in this sector which are the Japanese Yamaha and Honda. Yamaha and Honda strengths are their long-run experience in the sector and the high quality image of products. Due to participations to the motorcycle championships, these two companies constantly receive positive feedbacks to their efforts in researching for first class products. In the future, other kinds of competitors are expected to arise: Chinese companies whose ability to imitate and create similar products at highly competitive prices is getting more and more dangerous (Piaggio, 2008)
James, W. B., & Graham, B. (2004). Strategic change in the face of success? Harley-Davidson, Inc. Strategic Change, 13(4), 205.