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Harley Davidson
Case study
Harley Davidson
Presented by#
Dawood shah
MPA 4th semester
Introduction
• Harley-Davidson is an American motorcycle
manufacturer.
• one of two major American motorcycle
manufacturers
• High price
• Harley-Davidson has problems in gaining
more market share in some European
countries (That’s one of the main markets
for Heavyweight motorcycles outside U.S)
• Required production is not met,
analyzing the future of Heavyweight
motorcycle market
The Five-Forces Model of
Competition
Potential development
of substitute products
The European demand for Harley Davidson is the highest 0.15 4 0.6
in the international market and represents the single largest motorcycle market in the world
The international heavy weight market is growing and is now larger than the U. S. 0.15 4 0.6
heavyweight market
Women and younger riders are increasing becoming 0.1 3 0.3
interested in bikes
Market share increasing in Europe and Asia for the last two 0.1 3 0.3
years
Increasing demand in US markets for bikes 0.1 2 0.2
THREAT
The European Union’s motorcycles noise standards are more stringent than 0.025 3 0.075
those of Environmental Protection Agencies in the U.S and increased environmental
stand
Some competitors of Harley Davidson have larger financial and marketing resources and 0.50 2 0.05
they are more diversified
Environmental protection laws 0.025 4 0.1
CRITICAL Weight Rating Weighted Weight Rating Weighted Weight Rating Weighted
SUCCESS FACTORS Score Score Score
Competitiveness
Position
Customer 0.15 4 0.6 0.06 2 0.12 0.15 2 0.3
Loyalty
Global 0.025 3 0.075 0.05 4 0.2 0.02 3 0.06
Expansion
Market Share 0.3 2 0.6 0.32 3 0.96 0.02 2 0.04
The HOG (Harley Owners Group), which have a 7,50,000 members world wide is 0.05 2 0.1
the industry’s largest company sponsored
motorcycle enthusiast organization
Harley-Davidson have a good marketing 0.10 2 0.20
division and its divided as dealer promotions, customer events, magazine and
direct-mail advertising, and public relations
WEAKNESS
They didn’t yet start its sales in India, one of the biggest markets 0.1 3 0.3
TOTAL 1 3.075
TOWS
Space matrix
SPACE
Space matrix
• Average value for FS = 3
• Average value for CA = -1.85
• Average value for IS = 4.17
• Average value for ES = -3.33
• Point on X axis = (-1.85+4.17)/2 =
1.16
• Point on Y axis = (3-3.33)/2 =
-0.165
Space
QSPM
Recommendations
• Increase diversity programming
• Explore opportunities for physical
plant expansion into other
geographic regions
• Increase sales to young customer
thanks