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The Product Portfolio Analysis Of Harley-Davidson

Decent Essays
d. Product Portfolio Analysis
Harley-Davidson offers various products and services to its customers, which can be categorized as following:
• Motorcycles: Touring, Dyna, Softail, Sportster, and VRSC. It represented around 80% from total global revenue in during 2008. About 70% of its sales generated from US market.
• Parts and Accessories: replacement parts, and mechanical and cosmetic accessories. It represented 15.4% from total global revenue in 2008.
• General Merchandise: motorcycle riding clothes and accessories. It represented 5.6% from total global revenue in 2008.
• Licensing: allowing other manufactures to use Harley-Davidson brand name and logo on their products; such as: t-shirts, jewelry, leather goods, and toys. Revenues from it
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Some of these products and services were created to increase the awareness of its brand among its customers and non-customers, and to encourage and attract the non-riders to be future customers.

4. 3-Years Strategy
a. Screening Different Strategic Directions
According to Porter’s Generic Strategies, Harley-Davidson has a Focus-Differentiation strategy. It focuses on the heavyweight motorcycles with customers who consider their motorcycles a luxury product. In the same time, it seeks to be unique in its industry, by creating the HOG worldwide family hammering on its heritage as being symbolic of the American Dream. When one purchases a Harley-Davidson motorcycle, he becomes a part of a family of owners that rides together and parties together. In other words, Harley-Davidson is not a transportation medium, it is a lifestyle.

Based on Ansoff Matrix Analysis, the set of decisions made related to market and/or product selection can lead to the following strategic options or directions:
• Keep focusing on current markets that Harley-Davidson competes in with the current product
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o In brief, offering value-added services in Harley-Davidson current markets is crucial.
• Explore new market(s) that can accept Harley-Davidson’s current product range. o Harley-Davidson manufactures mainly five different families of motorcycles, which target different segments. New geographical markets or targeted segments can be explored against each family to check for any potential expansion.
• Develop new product(s) that can be sold in new markets that Harley-Davidson never explored. o Most Harley-Davidsons competitors are diversified in many products other than motorcycles; such as: automobiles, all-terrain vehicles, generators, marine and personal watercraft, snow blowers, and scooters are also sold under the Honda brand. o In general, manufacturing and R&D are not the key strengths of Harley-Davidson. As a result, any diversification in new product categories can add to the manufacturing complexity, which may affect the overall
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