Harley Davidson Strategic Analysis
William Harley and Arthur Davidson wanted to take the work out of riding bicycles in 1901. After being joined by the Arthur brothers, Walter and William, they came up with the idea of putting a motor and a bicycle together. Many engine changes were made before the builders were satisfied. In 1903, they created the first Harley-Davidson motorcycle and produced three that year. Harley built its first building in 1907 on Juneau Avenue in Milwaukee. That same year, 150 motorcycles were produced. As they were used for recreational purposes, they were also used in military situations. They proved useful in border skirmishes and the government called for 20,000 bikes to be shipped overseas. Following the war, other companies tried to enter the market, but Harley remained the largest. The depression had an unfavorable effect on Harley as it did with most corporations, but it outlasted the crisis and celebrated its fiftieth year in 1953 as the sole survivor in the motorcycle industry. Harley did turn public in 1965, but was bought by thirteen senior Harley-Davidson executives in 1981. It was returned to public ownership in 1986 by offering two million shares of common stock. It was approved by the New York Stock exchange in 1987 and has been there ever since.
2. A company with the history of Harley-Davidson has few weaknesses and threats, but a SWOT analysis can help them turn them into favorable opportunities and strengths.
Strengths- Customer loyalty is probably the number one strength of Harley's business. Once a person buys a Harley, it seems as though they become trapped in the entire Harley business. Once they buy a Harley, they usually never buy another brand of motorcycle. Along with the bike comes the apparel. Once a person purchases a bike, the jacket, bandanas, etc. become a must. Opportunity- For Harley is that the economy is at a place where people will go out and purchase a motorcycle for recreational purposes. Whether the economy is good or not, is a place where they may thrive. When the economy is not doing as well, people may look at a motorcycle as a more economical way to travel so Harley can do well in both situations. Weaknesses- Large numbers of products being produced can make for many errors. When there is such a demand to produce many of one type of product, there can be many mistakes that...
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...s and perhaps by reaching out to them with these types of products, they will develop future relationships with them. These performance products can be used for recreation and competition while keeping that edge that Harley has had since it began.
5. The stock of Harley continues to rise as the idea that the Japanese is dominating the industry. Since the beginning of the year, the stock for Harley has risen almost 49%. Part of the reason is the change in their operations. For years, people would have to wait for months for a bike due to the huge demand, but foul ups have been fixed and they are now pumping out bikes like never before. This article also states how well Harley deals with its employees and their union. Most recently, they signed a seven-year contract while still having one year left on their previous contract. There are some critics though who believe that Harley is just a "balloon waiting to burst". Due to the expensive price, they believe that there is not much room to grow and that it is only a matter of time before the stock price begins to drop.
- www.harleydavidson.com
- http://www.businessweek.com/bwdaily/dnflash/nov2000/nf20001117_421.htm
A SWOT Analysis can be powerful to any company. The SWOT analysis for PetSmart allows them to expose opportunities that otherwise could be missed ("SWOT Analysis," n.d.). An additional benefit of a PetSmart SWOT analysis is gives the company an understanding of their weaknesses, which can result in a competitive edge for its competitor. Understanding strengths, weaknesses, opportunities, and threat as a company will give PetSmart an advantage over a company who chooses to ignore this type of analysis. In addition, PetSmart can eradicate any possible threats that could catch them off guard ("SWOT Analysis," n.d.).
Harley-Davidson states their mission as “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments.” They have performed wonderfully over the past hundred years, and have not forgotten their mission or where they came from. Over the years they have stuck with the things they know, and also expanded into related services and products. Out of the 151 motorcycle manufacturers, Harley-Davidson and Indian were the only two companies to survive the Great Depression. Harley-Davidson was the only one in America after Indian dropped out in 1953, but face Indian again now since they re-entered the market in 1999.
The next ratio we will review is gross profit margin. Gross profit margin (GPM) measures the percentage of each sales dollar remaining after the firm has paid for its goods. The higher the gross profit margin, the better. Harley Davidson's gross profit margin was 35.08% for 2001, 34.09% for 2000.
...es how powerful of a symbol it has become. You wouldn’t consider the fact that someone drives a Honda Accord a defining characteristic of his or her identity but somehow that changes when it becomes a Harley Davidson Heritage Softtail. "Four wheels move the body two wheels move the sole" (Harley Davidson Ad/ 1992). It becomes clear that the motorcycle is much more than a vehicle; it is a manifestation of American values. When you break it down nothing seems more American that freedom, and brotherhood. Film has fully capitalized on these characteristics helping make the motorcycle a powerful image that has had a defining impact on American culture.
The series of activities that are enacted by a firm that add value to a product beyond the cost of the production are referred to as the value chain. Harley Davidson offers a combination of superior performance and unique attributes within its value chain that promotes their core competencies and provides them with a competitive advantage.
SWOT analysis is a necessary tool for business that allows corporations to analyze where their strengths, weaknesses, opportunities and threats lie. The SWOT tool contains paramount information about the industry and helps the executives of the business make decisions that are necessary for the business’s survival and success.
Some characteristics of Hermes include his ingenuity, knowledge, creativity, and is known to be very cunning. He is also quite good at gymnastics. Hermes is an incredibly clever god. He found a tortoise outside of his cave and displayed his godly talent by placing strings over the shell, inventing the first lyre. As a child he was very precious, even for a god. But he caused a great deal of trouble. But one day, he went too far and learned a very important lesson.
Hermes’ long for adventure contributes with his cunning ability to commit an act of trickery. On the day Hermes was born, he snuck out of his house when his mother was asleep and traveled down to Apollo’s property. When Hermes saw the land, he noticed there were cows there, and with Hermes’ craftiness, he led the fifty cows by their tails. The footprints made it look as if the cows were walking towards the property and not away from it. He took them to a surrounding cave in the area, so the owner could not see them (“Hermes”). When returning home, he saw a turtle and decided to kill it, from there he “stretched some of the cows entrails across the opening of the shell to make a musical instrument" (Daly 45). Hermes uses his cunning ability to figure out a way to successfully complete his adventure. While doing so, he, additionally, uses his intelligence to complete an invention, in this case an instrument, from things he acquired. Hermes’ trickery did not go unnoticed, as he would be noticed by the gods; eventually, he will receive position of prominence. When Hermes tried to deny the robbery of the cows, the gods would not accept it because “Zeus had seen everything” for himself (“Hermes”). And as Hermes grew up he would come to receive the position of Zeus’ “personal messenger” (“Hermes”). Hermes goes from being unnoticed to having Zeus see every action he did, because of
• The people in the company and the passion which the people have for what they were doing. Weaknesses • Sales amount was going down. • Dealers don’t have the time to educate customer in each product of every line that they carry. • Just focus on the retailer instead of the end-users. • Competition - There are now more than 20 manufacturers in the bicycle industry and Specialized will need to stay at the forefront in order to keep its leadership.
The biggest challenge facing Harley-Davidson is poor quality. Beals and other mangers visited Japanese plants, as well as Honda's plant in Marysville, OH. There they learned that they were not being beat by automation or advanced manufacturing processes, but by a professional management team and motivated workers.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
Harley-Davidson is the largest market share holder of motorcycles over 750cc in the United States. After the expansion of our production and distribution capacity, we will be in the position to meet the increasing demand for our motorcycles and other products, including a new line of clothing specially design for women. Growth potential appears very good especially in the overseas market and the young and mature women and younger market. Gaining a larger market share in this area may require a further increase in production and distribution capacities. We must plan for expansion and build new strategies how to target the woman, younger market, as well as the already HD owners and continue to grow as a company.
A SWOT analysis is a measure tool to summarize a company’s internal and external aspects. By measuring the company’s strengths, weaknesses, opportunities and threats and looking for improving solutions by using the strengths and opportunities to improve on the weaknesses and take the necessary actions concerning any threats a company can survive in today’s world market.
The motorcycle industry offers products which can be viewed as luxuries or wants as opposed to necessities. When concerning Harley-Davidson, most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and off-time instead of during the work week. This implies that the motorcycles serve for recreational purposes and thus are an item which can be expendable at times. This has hurt the industry recently with the slight recession the United States economy is facing. Another interesting thing to note about the motorcycle industry is the different appeal bikes carry in different global regions. In the United States for instance, Harley-Davidson has had much success because of the market trends and tastes people enjoy. Harley-Davidson has benefited from a U.S. market which enjoys casual and recreational riding. This isn’t necessarily the case overseas, as in Europe the trendy pick is a sleeker street bike, with a focus on speed and handling as opposed to power and comfort.
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.