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Strategic Analysis of Harley Davidson

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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 …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 Financial incentives for the states were repealed by the Congress wherever universal helmet laws were not enforced.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

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