A SWOT Analysis of Harley Davidson

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The strengths of the Harley Davidson company are many. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson has been continuously ranked among the top 100 global brands in the world. The company holds 55.7% share in the US heavyweight market; and is ranked #1 or #2 in the heavyweight motorcycle market share in nine countries across Europe. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality. The company achieved industry recognition for its high quality, best design, robust performance and unflinching customer confidence, loyalty and trust of its products and services. The Harley Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base. The company reported strong operational efficiency with decreased cost and increased margins in 2012. Harley Davidson’s revenue stood at $5,580.51m, showing an increase of 5.1% over $5,311.71m in 2011. Its operating income increased to $1000.18m in 2012, indicating 20.5% growth over $829.97m in 2011. The company reported increased operating margin of 17.92% in 2012, as compared to 15.62% in 2011. The operating margin has increased 229 basis points (bps) over 2011 which may indicate management's high focus on improving profitability. The increased operating margin may indicate efficient cost management or a strong pricing strategy by the company. On the other hand, the company reduced its operating cost as percentage of sales to 82... ... middle of paper ... ...5. Association des Constructeurs Europeens de Motorcycles (ACEM) is likely to introduce €3 standard for mopeds and €4 standard for motorcycles by 2012. It also proposed the introduction of more stringent emission test cycle, and €5 standard for motorcycles by 2015. Such implementations might require the company to redesign its vehicles, which could result in increased operating costs. Failure to comply with the standards could result in penalties and affect its profit margins. Conclusion The outlook for Company Name, based on an analysis of strengths, weaknesses, opportunities and threats is …….. Works Cited 1. "Harley-Davidson Strategic Analysis." Scribd. N.p., n.d. Web. 24 Mar. 2014. 2. "Investor Relations | Harley-Davidson USA |." Investor Relations | Harley-Davidson USA |. N.p., n.d. Web. 24 Mar. 2014. 3. Correctly Cite Source
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