Harley Davidson Case study

            
             American heavyweight motorcycle manufacturer.
            
            
            
            
             S) market has become increasingly saturated.
            
            
            
             u Harley-Davidson maintains a competitive advantage on the basis of value.
             u Harley-Davidson maintains a competitive advantage by the legendary mystique associated with Harleys (Nostalgia, & American dream).
             u Harley-Davidson can be restored unlike Japanese clones.
             u The only remaining American motorcycle manufacturer.
             u Successful revitalization program.
             .
             Weaknesses:.
            
             The huge amount of R&D expenses.
            
             Massive advertising costs required.
            
             Need of high return on investment.
            
             High prices.
             Opportunities:.
             u The U.S market demand for high quality motorcycles for leisurely use.
             u The worldwide motorcycle industry generates an estimated 5.5$ billion in annual sales.
             u Growth potential for Harley-Davidson is tremendous in the Asia markets particularly Japan and China.
             u The international market expanding and coalescing.
             u Local (U.S) sliding tariffs.
             Threats:.
            
             There is a stiff competition given the economies of scale and vast resources base among the Japanese makers.
            
             Competitor's introduction of new and innovative products.
            
             Decline of overall sales in the industry. .
            
             Key motorcycle companies are in constant fight to maintain market share. .
            
             Unmatched supply to the foreign demand.
             Organizational Objectives:.
             q Supply the demand outside the U.S without loosing from the quality of the product.
             q Make exports a larger portion of its business with optimistic figures reaching 50%.
             Key Facts:.
             q The worldwide motorcycle market industry generates an estimated 5.5$ billion in annual sales.
             q Four major Japanese competitors (Honda, Yamaha, Kawazaki, and Suzuki).
             q Harley-Davidson controls 62.7% of the U.S of the U.S heavyweight total market.
             q Outside the U.S, the Japanese motorcycle manufacturers hold an 80 to 90 % share of the total market.
             Key Decisions: .
             q Implement a strategic operator control system as part of Harley's commitment to improve quality.