This paper presents an analysis of strengths and weaknesses of Harley-Davidson in order to assess its current market standing and future competitiveness in its industry. The major strengths of the company include high brand recognition, financial strength, and aggressive marketing strategies which help it in moving forward in a competitive motorcycle manufacturing and sales environment; while premium pricing, lack of product diversification, and weak global influence are the major weaknesses which can bring adverse impacts to its competitiveness and sales performance. This paper presents an analysis of strengths and weaknesses of Harley-Davidson in order to assess its current market standing and future competitiveness in its industry. The major strengths of the company include high brand recognition, financial strength, and aggressive marketing strategies which help it in moving forward in a competitive motorcycle manufacturing and sales environment; while premium pricing, lack of product diversification, and weak global influence are the major weaknesses which can bring adverse impacts to its competitiveness and sales performance.
Harley Davidson 5304
Harley-Davidson
Harley-Davidson Inc. is an American motorcycle manufacturer specialized in heavyweight cruiser and chopper style of motorcycles with over 700 cc. Founded in 1903 and headquartered in Wisconsin, United States, Harley-Davidson is one of the two major American motorcycle manufacturers and known as a classic American icon. Since its inception, Harley-Davidson has been setting remarkable records with its top quality motorcycles for miles per gallon, speed, racing, distribution strength, etc. Today, it is the most recognized motorcycle brand in America and the rest of the world. Harley-Davidson bikes are totally incomparable with other branded motorcycles due to their sleek and classic design, iconic and heroic look, heavy weight, and V-twin and Revolution engines. The major model families of Harley-Davidson include Softail, Sportster, Touring, Dyna, V-ROD, CVO, Trike, etc. (Harley-Davidson Inc., 2013).
SWOT Analysis for Harley-Davidson
SWOT Analysis consists of internal and external environmental analysis. The internal environment constitutes the strengths and weaknesses which are present in a firm's operations, capabilities, resources, strategies, and factors related to its products and services (Brassington & Pettitt, 2006). This section comprehensively describes the major strengths and weaknesses of Harley-Davidson in order to evaluate its current position and future competitiveness in its industry.
1. Strengths of Harley-Davidson
a. High Brand Recognition:
The biggest strength of Harley-Davidson is a high level of brand recognition and appreciation in the world markets. It is the most famous, liked, and appreciated motorcycle brand among all age groups from its target market. Representing itself as a true icon of the American culture, Harley-Davidson brand has successfully established its brand equity and brand loyalty in the Global motorcycle market. It manufactures top quality heavy bikes that are fast, stylish, classic (with modernized touch), and highly fuel efficient with a record average of fuel consumption. Moreover, Harley-Davidson bikes give a prestige to their riders. If someone rides Harley-Davidson for once, he never switches to any other brand in his life. This strong brand loyalty has become the strongest competitive advantage of the company against its competitor motorcycle brands.
b. Financial Strength:
Harley-Davidson is one of the strongest companies in the United States with respect to financial position, sales performance, and market share. Currently, it holds the majority of market share in the U.S. motorcycle industry (Harley-Davidson Inc., 2013). In addition to manufacturing cruiser and chopper style heavy bikes, Harley-Davidson also manufactures motorcycle spare parts, accessories, and apparels (leather jackets, gloves, etc.). Moreover, it deals in various kinds of financial services for individual and corporate clients. The sales figure of the company has always been showing an increasing trend. The President and CEO of Harley-Davidson, Keith Wandell believes that this exceptional sales performance of the company is the result of collective efforts by its associates, employees, and supply chain members (Harley-Davidson Inc., 2012).
c. Aggressive Marketing Strategies:
Harley-Davidson operates at the global level and sells millions of motorcycles every year (Harley-Davidson Inc., 2012). Its target market consists of upper-middle and high level income groups that want to purchase prestige in the form of a world class heavy bike. In order to attract these potential customers, Harley-Davidson uses extensive promotional and advertising campaigns at different marketing mediums. Taking support from its strong worldwide recognition, brand loyalty, and financial position, these campaigns promote Harley-Davidson motorcycles in an aggressive and compelling way. Harley-Davidson markets its motorcycles at a huge level at television, social media, newspapers, and marketing website -- making itself the most marketed motorcycle brand in the industry (Harley-Davidson Inc., 2013).
2. Weaknesses of Harley-Davidson
1. Premium Pricing:
Harley-Davidson is an expensive motorcycle brand. The prices of its motorcycles nearly match sports or racing bikes and heavy bikes. Based on demographic patterns, Harley-Davidson has a very limited target market that consists of only upper middle and high income people. Due to premium pricing, Harley-Davidson cannot advertise its bikes to lower income or price-conscious people (Keller, Parameswaran, & Jacob, 2011). It cannot even cut the prices of its bikes due to heavy costs of production and operations. For example, the top quality raw material used in the manufacturing of HD bikes is purchased at high costs. Similarly, the marketing campaigns put heavy financial burden on its business costs (Brassington & Pettitt, 2006). This weakness of Harley-Davidson has become a competitive strength of its competitors.
2. Lack of Diversification:
Although Harley-Davidson bikes are highly differentiated from their competitor brands on the basis of design, price, and performance; the company lacks diversification in its product design approach. All the Harley-Davidson brands like Softail, Sportster, Touring, Dyna, etc. are designed in the same chopped cruiser style (Harley-Davidson Inc., 2013). Harley-Davidson has been using this design since the beginning of its manufacturing operations more than a century ago. This lack of diversification further limits its customer base due to decreased alternative options for customers in the Harley-Davidson product range.
3. Weak Global Influence:
Despite having strong brand recognition and customer loyalty, Harley-Davidson has failed to gain strong global influence in the motorcycle industry. Reason being, Harley-Davidson bikes have chopped cruiser style design which is not acceptable by majority of the potential customers. On the other hand, its competitors like Honda, Suzuki, Yamaha, Kawasaki, Ultra, Triumph, Viper, etc. manufacture diversified types of motorcycles in order to meet the requirements of different types of customers in the world markets.
Evaluation and Conclusion
Keeping in view the strengths of Harley-Davidson, it can be said that strong brand recognition, financial strength, and aggressive marketing strategies can benefit the company in the long run. However, the weaknesses like high pricing, lack of diversification, and weak global influence can turn into critical threats for its operational and financial performance in the future if the company will not overcome them in an effective and efficient way (Vorhies & Morgan, 2005). In order to capitalize on its strengths, competitive advantages, resources, and capabilities, Harley-Davidson is striving to improve its sales performance in the world markets (Harley-Davidson, Inc., 2012). These strengths and capabilities have largely contributed in increasing the competitiveness and market position of Harley-Davidson in the global motorcycle industry (Keller, Parameswaran, & Jacob, 2011).
You’re 88% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.