Harley Davidson Financial and Strategic Analysis Review

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.

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.

Answer: H-D using “Differentiation Strategy” by offering its heavyweight motorcycle through the distinctive designs. H-D are also a leader in the heavyweight motorcycle manufacturers industry and it has more than 100 years old in this market, also its American icon make H-D become traditional brand. Due to H-D becoming the traditional brand in American made version, the consumers perceive that H-D mean quality. Consumers will choosing H-D products because of their high quality products and demand

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.

The company’s total revenue in 2014 was just over 6.2 million dollars, which is an increase of .7 million dollars as of 2012. Harley-Davidson’s cost of revenue has also been on the increase over the past three years. The company’s gross profit in 2014 was 2.4 million dollars, which was 2.15 million more than Drew industries.

Then in return, these stakeholders will continue purchasing their products throughout their life time due to their unforgettable experience they have doing business with Harley-Davidson. Harley-Davidson believes the backbone in their business is their strong brand name and their loyalty with customers.

In this paper we will perform a complete analysis of the Harley-Davidson Corporation including their corporate and business strategies, strengths and weaknesses, environmental opportunities, the five industry forces, and financial situation. Harley-Davidson has many attributes, which will be apparent in the following analysis. The paper will attempt to define the different components of the analysis and put them all together in a way that seeks to explain the way that they contribute to the overall success of the company and its stakeholders.

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.

Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and

Regardless of their emergence in the market in the year, in 1903, Harley-Davidson together with the motorcycle industry did not have an easy start until the end of the Second World War. Many people used motorcycles during the period the war took place. Harley-Davidson was instrumental in supplying around 90,000 motorcycles to the American military during this period. Many veterans opted to buy motorcycles after returning home. This is because they enjoyed riding the motorcycles during the war and desired to continue riding them after the end of the war. This generation was called the "baby boomers" and became the primary target for Harley-Davidson to market their products.

Harley-Davidson is one of two American producers of motorcycles, and the nation 's #1 seller of the cruiser style of motorcycles. The organization offers 35 different models of custom and touring bikes through a worldwide network of more than 1,500 dealers. Harley models include the Sportster, the Fat Boy, and the Electra-Glider. The company also produces sport bike style motorcycles under the brand name of Buell. Other than its motorcycles, Harley-Davidson sells a certain type of life style and attitude. Including, but not limited to, goods licensed with the company name, such as a line of clothing and accessories. Retrieved June 12, 2007 from

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%.

Harley Davidson is the iconic American motorcycle manufacturer. It was founded out of a small shed in 1903 by William S. Harley, Arthur and Walter Davidson in Milwaukee, Wisconsin (Motorcycle usa.com). Due to modernization the Motorcycle has change in style, shape and power. As mentioned previously all materials that were used to manufacture this iconic American Motorcycle were readily available because they first made bicycles and the parts were locally manufactured. Over the years the popularity of the motorcycle increased, which made the demand for raw materials for this product to increase as well in other to sustain the demand.

Harley must deal with weaknesses that prevent the company from maximizing performance and moving from the fifth largest manufacturer to first in the world. The motorcycle giant has a narrow product mix, preventing the business from reaching more market segments and age demographics. Another weakness exists from sales primarily originating in North America, and insignificant or nonexistent sales in developing countries. Furthermore, the company has a limited supply chain that hampers potential expansion in the global motorcycle market. The demand for Harley-Davidson products has the opportunity to create new business alliances to increase market reach and broaden the product

In year 1901, Harley-Davidson Motorcycle Company was established by William Harley and Walter, William, and Arthur Davidson, who built their first motorcycle in the Davidson family’s backyard in Milwaukee, Wisconsin. Two years later, they success