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Harley-Davidson Swot

In: Business and Management

Submitted By mbulgakova
Words 697
Pages 3
Strengths
• Dominant market position. The organisation has roughly 50% of the U.S. market and “is one of the most recognized brands in the world, providing scale advantages over most competitors (except Honda)” (Forbes, 2011).
• High level of loyalty consumers. Cooney J. (2005, p. 24) claims that the organisation “maintains brand-loyalty customers by staying in tune with their wants and needs in the motorcycle, aftermarket, and consumer products areas”.
• Cost Cuts. The company is trying to improve the cost structure and restructure its businesses in order to become more efficient and profitable in the future (Forbes, 2011).
• New markets. Harley-Davidson is penetrating international markets using strong brand name. In 2010, the company has opened three new dealerships in India and a subsidiary operation in China (Forbes, 2011).
• Strong internal culture. Among its values Harley-Davidson highlights “tell the truth”, “be fair”, “keep your promises”, “respect the individual”, and “encourage intellectual curiosity”. The organisation is aimed at employee involvement and creation of strong relations with consumers (Harley-Davidson, 2004).
Weaknesses
• Expensive Product Range. Harley-Davidson suggests an expensive product range that attracts only high-income consumers. This problem has become more noticeable due to lower customer purchasing power in the current economic situation (Forbes, 2011).
• Difficult to change the target audience. Today the organisation fails in attraction of new customers. According to US purchasing profile of Harley-Davidson in 2011, 65% of buyers owned a Harley-Davidson motorcycle previously at any point during life time, while only 35% of buyers are new to Harley-Davidson (owned competitive motorcycle or first motorcycle).
• Harley-Davidson culture is out-of-date. The culture of Harley-Davidson that the organisation has created...

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