Harley Davidson Strategy

2234 Words May 23rd, 2011 9 Pages
1.0 Executive Summary
Harley-Davidson is a company that despite enjoying nearly 15 years of being a leader in the market place and capitalizing on strong sales growth, find themselves reevaluating their overall strategy. The analysis below goes through the each level of the market-place to determine where, what and how change can take place. At the industry level, it is clear that the mature product life cycle necessitates stronger price competition, further expansion into foreign markets and more diversification of their product-lines. Next at the firm-level, Harley-Davidson needs to continue to capitalize on their strengths like brand equity and supplier relationships, focus on their value adding functional-level practices like
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In order to do this the motorcycle industry’s key success factors, global and domestic competitive landscapes and life-cycle attributes were thoroughly reviewed. The industry analysis serves as foundation to understand how, at a firm-level, Harley-Davidson has become a formidable leader in the domestic and global market, as well as reveal areas that need restructuring. Finally, the geographical markets in which Harley-Davidson has an established presence in and unexplored markets are evaluated in respect to their viability and potential for long-term growth.
3.2. Industry analysis
3.2.1. Industry key success factors
According to IBIS World, at the very minimum a successful firm operating within the motorcycle manufacturing industry (NAICS 33699) must: * Comply with required legal product standards * Development of new products in order to broaden customer base * Utilize economies of scope and scale * Access to the latest and most efficient technology and techniques * Access to highly skilled workforce

3.2.2. Competitive Landscape
Figure [ 1 ]: Porter 's Five Forces for the Motorcycle Industry
Porter’s Five Forces model (Figure 1) was used to determine the competitive nature of the motorcycle industry. There are several important takeaways from this analysis. First, the majority of market share belongs to four firms. This top heavy structure,
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