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Harley-Davidson SWOT Analysis

Harley-Davidson, he joined the New York Stock Exchange as the HOG (Harley Owners Group), is well known for its motorcycles, which also represent the American spirit and image. Founded in the early time of 20. It is also known to survive the Great Depression. The firm provides heavyweight motorcycles specially designed for cruising.

Following are the strengths, Weaknesses, Opportunities and Threats of Harley Davidson.

Strengths

• There are approximately 70% market share in relation to the market for heavyweight motorcycles.

• Has its operation in the manufacture of motorcycles, and is also active in providing financial services.

• The only American brand manufacturers of heavyweight motorcycles.

• Has a strong brand and is well established in the consumer’s mind with the image of “freedom and strength.”

• BRAC (Buell Riders Adventure Group), formed to support the brand and engage customers leverage their standard of fidelity.

• Custom Motorcycles is a significant amount of revenue for Harley Davidson.

• Excellent relationship with the supplier, so that the integrity of the work and performance is achieved without the expense of quality.

• Strong image with respect to the goodwill of the factors (the company has its employees to join with communities to lend a hand.)

• strong and durable long-term relationship with employees.

• The company admits SNBC (Breast Cancer Network of Strength).

• It is also compatible with the MDA (Muscular Dystrophy Association) and has done so in many ways helped the association with regard to research and development, providing financial resources.

• Strong marketing and distribution channel in the U.S.

• Enlisted in the Fortune 500.

• Customer loyalty first and foremost strength of the company (Once a customer buys a motorcycle, jacket, scarf, etc become a part of it).

Weaknesses

• They are charging high Price from customers.

• Loss of market share steadily, especially in the European market.

• Analyze future production needs heavyweight bike is weak, because the required production quantity is not met.

• Poor marketing techniques that is not attracting new customers in the international market.

• Many people also fear of being classified as ‘hooliganism’ in society if they started cycling.

Opportunities

• The demand for Harley Davidson is the highest in Europe on the international market.

• It must market their products more competitive, especially in the European market.

• India is a large untapped market for motorcycle too.

• Women and young people are more inclined to ride a bike.

• International market for bicycles is much larger than the U.S. market.

• Customer value parts in the international market.

• Even in regions where the economy is at a low level, Harley may take the opportunity by the thought of customers in that situation, a bicycle is a cheaper way to travel, which would be favorable for the Harley.

Threats

• Capacity constraints and supply shortages have anticipated the loss in recent years.

• The average age of purchase according to an investigation of 42 years old and growing.

• Increased environmental regulations.

• Increased standards in the European market.

• Some of the competitors of the company is using more resources in marketing their product line (bicycles) and is a  threat because it can change your risk factor for having diversified product line.

• Buell Division should continue under the umbrella of Harley.

• Because of the low cost of making a bike and the higher profit margin, it is clear that more competition can participate, especially those already in the car manufacturing market.

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