Harley-Davidson Swot 5 Forces

Harley-Davidson Inc., an employer of 4,694 workers,

consists of Harley Davidson Motor Company based in

Milwaukee and Eagelmark Financial Services Inc.

Based in Chicago, Illinois. In addition, there are nearly

600 dealerships throughout the United States and

1,065 dealers worldwide.

Harley-Davidson is the #1 seller of heavyweight

motorcycles in the United States, holding a 47%

market share.

Harley-Davidson's revenues come from five major

areas: H-D Motorcycles,Genuine Parts, Financial

Services, H-D Merchandise, and Beull Motorcycle

Company.H-D Motorcycles is the staple of company

and brings in the bulk of the company's revenues at

73%.Industry Overview

In 2003, 950.000 bikes in US and 23M worldwide.

2007, %5 growth expected

China, India and SE Asia are expected to drive the industry growth

Larger bikes are predominant but smaller bikes will exceed the former one as a result of age and travel difficulties.

Oligopolistic structure

Mature Industry

Moderate legislative and regulation obstacles in many countries (air pollution laws, driving licence problems etc.)Objectives

Creating a new and younger customer base

Growing companies' market share in world market

Gaining and sustaining competitive advantage

Strategies

Full commitment to build-to-order and focused-differentiation strategies.

Value over price through the development of mini-niches and the heavy construction of the parts.

Not exceeding demand in production. (By not being able to meet demands, an attitude of must-have has developed)

Developing the relationship between customers, dealers and employees (HOG, HD University)

Providing awareness of H-D brand among non-riding public (Licensing)

Continuous improvement of quality and efficiency through ;

- Just-in-time inventory (being renamed MAN (materials as needed-to differentiate from ineffective JIT's processes implemented by other companies.)

- Employee involvement (EI)

- Statistical operator control (SOC) simple statistical techniques and control charts to monitor and answer 2 main questions Is the process in control (operating in a stable, predictable range of variation) and Is the process capable ( to remain within the specifications consistently )

Not dependent on advertising or other traditional marketing techniques "selling dreams and lifestyle not transportation "

Customers are the sales force Ð''It's one thing for people to buy your product or service, but it's another for them to tattoo your logo on their biceps.'

Promoting sales by the financial services offered by Eagelmark, a wholly owned subsidiary. H-D Financial

Services makes it easier to own and finance the bike of your dreams.

Promotions at motorcycle rallies.

Opportunities

Recovering economies in US and Asia / Pacific

Increase in motorcycle usage every year

Increase in transportation and traffic problems

Sponsorship for racing activities and special promotional events and major motorcycle consumer shows and rallies.

Marketing through rider training programs

Non-traditional retail outlets

Continuous quality improvements

Plans for capacity expansion

Strengths

Customer Loyalty

H-D quality products stand the test of time; this is evident by their high resale value. H-D motorcycles have the highest resale value of any other motorcycle company

High resale value also correlates with high sales, since consumers know that they get out what they put into their investment.

H-D products are in compliance with all applicable environmental regulations and standards

Using almost all new technology in production (V-Rod)

HOG (largest motorcycle club in the world) and BRAG (Buell Riders Adventure Group)

Strong company culture

Brand loyalty and perception

American Culture

Brand stretching success

Strong dealer network

Growing financal resources

TechnologyThreats

Weaker global economy

TQM practices

High cost of manufacturing because of steel usage

Bush's steel tariffs

Highly competitive market

Negative image about motorcycles

The attack of Japanese competitors through improved quality and low price strategy

Aging customer base and dramatic increase in older bikers' deaths

Rapid changes in consumer preferences

Whether it be golf memberships or extensive travel packages,