IV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES (SWOT)
A. Corporate Structure
1. How is the corporation structured at present?
a) Is the decision-making authority centralized around one group or decentralized to many units? The decision-making authority is decentralized around domestic and foreign operations.
b) Is the corporation organized on the basis of functions, projects, geography, or some combination of these? Harley Davidson is an MNC organized by a geographic area structure. This MNC operates in Europe, Middle East, Africa, Asia, Latin America, US, and Canada.
2. Is the structure clearly understood by everyone in the
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II. Are they consistent with the corporation’s mission, objectives, strategies, and policies and with internal and external environments? Yes. Regardless of any change(s) in the marketing strategies, Harley Davidson’s goals has always been and still is to inspire and fulfill dreams around the world through Harley-Davidson motorcycling experiences.
b) How well is the corporation performing in terms of analysis of market position and marketing mix (that is, product, price, place, and promotion) in both domestic and international markets? What percentage of sales comes from foreign operations? Where are current products in the product life cycle? For domestic and international markets, the corporation’s marketing mix is the following: The product strategy is any decision that helps the company continue to develop new products around its signature American image and positions the company in the market as such. The main reason for the introduction of the V-Rod was the need to create a bike that would appeal to a younger demographic and attain a greater market share for the company. By using the low-end targeting method with the introduction of the V-Rod, this can be considered HD 's first step toward implementing its strategic and marketing objectives. As
Question #2 In America and Japan, Harley has shifted the positioning of its products away from simple motorcycles and more toward being status symbols of a particular way of life. Can this positioning succeed in Asia, Africa, and South America? Why or why not?
Harley Davidson been in business for over a hundred years. The company operates in several related markets. They sell motorcycles, motorcycle parts and operate a financial component. Additionally the company operates in Europe, North Africa, the Middle East and Asia. All Harley-Davidson business segments operate internationally.
Demand – Customers are loyal and identify with the HD brand. Currently demand outmatches supply, so HD is considering whether to raise prices or expand capacity via various options.
How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?
1. What is their business strategy to grow profitably and compete over the long term?
d. Does the firm appear to have an effective corporate governance structure? Explain any shortcomings.
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.
Harley-Davidson treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
While cultivating sales in Asia, Harley-Davidson says for now it doesn't plan to manufacture bikes there. They cater their bikes as a luxury to high income communities. In Africa they hold group rides like the one happening in August 2013 held by “Harley Safari” http://www.hogafrica.com/content/harley-safari%C2%AE-august-2013.
Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.
Good relationships, continuous improvement, employee and management involvement, team building or employee training and empowerment are not just words out of a management book for Harley-Davidson. Only by adopting those management techniques and building a solid base between the management and the Unions/employees made it possible for Harley-Davidson to improve its management processes. While management 's responsibility is to build
The first strategy Harley-Davidson uses is customer focus. Harley-Davidson offers a wide range of products and services, from children’s’ tricycles, clothing accessories, and affordable motorcycles to more higher-ended luxury motorcycles targeting customers in all age groups. By allowing their customers to personalize and customize their motorcycles, this strategy helps build their second strategy, which is brand loyalty. Other strategies that help build brand loyalty and selling dreams are to have groups, such as the Harley Owners Group (HOG) and the Buell Riders Adventure Group (BRAG), so they can emphasize to their customers that everyone is welcome to join its large extended family for riders,. Their value is: “Tell the truth. Be fair. Keep your promises. Respect the individual. Encourage intellectual Curiosity.” (Harley-Davidson web
Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.
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Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.