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 …show more content…
Legal factors: Legislation enforces all the motorcycle riders to wear a helmet when on a motorcycle and if found without one, fines are applied. Financial incentives for the states were repealed by the Congress wherever universal helmet laws were not enforced. Licensing of motorcycles is required to be done again in the city even if it had been done once in the suburbs. The Environmental Protection Agency (EPA) is responsible for regulation of automobile and motorcycle emissions.
Porter’s Five Forces Theory
Now, for a better understanding of the external environment of the industry of motorcycles, we will present Porter’s Five Forces Theory.
Rivalry Competition: Harley Davidson has a High Rivalry Competition. HD deals with a huge amount of competition in the Motorcycles industry from other motorcycle manufacturers from around the world. These include Honda, Yamaha , Suzuki from Japan; Ducati, Aprilia, BMW and Triumph from Europe; and the Indian as its main rival from the US. The major problem HD faces here is that most of its major competitors are very diversified and have larger financial and marketing resources. For example, Yamaha generates only half of its revenue from motorcycles. The growth rate of this particular industry is forecasted to be 3.4%.
New Entrants: The possibility of New Entrants is supposed to be Low. The reason for this is that the entry barrier is very high in this segment, as it requires a huge amount
Threat from New Entrants There are currently no new threats from new entrants in this market. Company G’s technology, testing and production process that is very efficient for profitability cannot be easily replicated.
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.
Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.
The fight amongst the major players in this industry is not over price, but over capturing the market share. Since, there is no one definitive leader in the motorcycle industry on the global level, the companies tend to steal each other’s business, this makes the industry rivalry cut throat. One of the crucial factors that make this industry extremely attractive is the constant drive for innovation. Since different industry participants have different approach towards the same segment of the industry, there is a very high
The three statics of Harley-Davidson’s is; revenue, growth rate, and number of units that are sold. The manufacturer of the United States heavyweight motorcycle division has obtained, arrested, and achieved approximately fifty-four percent of the broad United States motorcycle exchange. Harley-Davidson has fifty-two percent share of the broad motorcycle exchange in which IBISWorld INC. has estimated that it will generate six point nine billion dollars in revenue this year, (Forbes, (2014).
Harley managed to remain profitable by introducing larger, more powerful motorcycles, becoming the undisputed leader of the market with over 60% market share. It earned a commanding lead of 50% market share in the United States and 32% globally in the 1950’s. The Harley motorcycle became a part of American iconography and was associated with the U.S. flag and the bald eagle, America’s national symbol. This resulted in unprecedented brand loyalty, especially among U.S. customers, which is prevailing till today.
As pointed out in the video, Harley Davidson is fully committed to fostering and growing the women motorcyclist market. Women today represent a large sector of the workforce, enjoy higher incomes than 20 years ago, and possess more disposable income. Furthermore, women are much more empowered than ever before and are encouraged to exercise their freedom of expression and individualism.
The overall intensity of rivalry in the motorcycle industry is strong, key players in this industry include the Harley Davidson, Winnebago, Polaris, Thor, Artic Cat and Marine Products. These top performers hold a high percentage of
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Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
The strength of Harley Davidson can be seen in its logo and product brand. In the United States, the Harley Davidson is like a cult since it has so many followers, as depicted in the case study whereby in all the rallies, hard core fans of the company, for example the Harley Owners Group was present. This gives the company a competitive advantage since it has a market that is readily available and willing to purchase its products no matter the cost. The other strength of the company as seen in the case study was in the protection by the government since it was a United States company. This helped Harley to recover when the company placed an increase on the tariffs charged on the
• Started as a partnership between a draftsman and a pattern maker in Milwaukee, Wisconsin in 1903. William Harley and Arthur Davidson intrigued by the newly invented motorcycles began experimenting with ideas to design and build their own motorcycle. They enlisted Arthur's brothers, Walter a skilled mechanic and William a machinist who gave live to the Harley-Davidson Motor Company. That early partnership has evolved into a family of millions of Harley-Davidson, Inc. stakeholders throughout the world.
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
Make a detailed SWOT Analysis of the Harley-Davidson Company, paying particular attention to the marketing mix (Product, Price, Promotion, Distribution, Personnel)
Harley-Davidson 's legend has lasted for more than one hundred years, what started in a shed in Milwaukee is now on of the most famous companies in the world.