Case study about the harley davidson bike specially focus on SWOT analysis. How to bike is priced and what are its competitive advantages.

1. Prepared By:
Sushil Prasad Sharma
Submitted To:
Lec. Krishna Raj Bhatta

2. Case Study on Harley davidson Motorbike
 Introduction
 History
 The SWOT Analysis
 Competition in Global Market
 Strategy to Success
 Distribution and Sales

5. The statements
Mission:
 We fulfill dreams through the experiences of
motorcycling, bike providing to motorcycles and to
general public an expanding line of motorcycles and
branded products and services in selected market
segments.
Visions:
 Harely Davidson is an action oriented, international
company a leader in its commitment to continuously
imporved its beneficials relationships with stakeholders.

6. The history of harley davidson
 1991: William Harley age 21 and friend Arthur Davidson
started company in backward stand.
 1993: William Harely and Arther Davidson make available to
the public the first production Harely Davidson motorbike.
 1904-1940: Prduction increase to the right motercycle. it is
the largest motorcycle manufacture.
 1941-1944: Normal sale for military purposes.
 1945-1969: World War-ii ends and HD produced almost
90000 for military use.
 1969-2000: Normal activities.
 2003: Harely Davidson introduced lightning XB59.
 2007: Harely Davidson financial services financced 50% of
new HD motorcycles retiled by independent dealers in the US.

7. The SWOT Analysis
Strengths:
 Domestic and international market share.
 Financial status.
 Product quality.
 Strong brand loyalty.
 H.O.G.s(Harely Owners Group) and B.R.A.G.(Buell
Riders Adventure Group).
 Strong distribution network.

8. Weaknesses:
 Harely Davidson doesn’t emphasized price its
products.
 Harely Davidson has had difficulty gaining market
share in some european countries.

9. Opportunities:
 The international heavy weight market is growing and almost as
large as the US heavy weight market.
 The European demand for Harley Davidson is the highest in the
international market and represents the single largest motorcycle
market in the world.
 Women and younger riders are increasingly becoming interested in
bikes-Japan has more female H.O.G members.
 Alliances with other automobiles are possible.
 Industry registration of domestic heavyweight motorcycle are
increasing.
 Market share are increasing in Europe and Asia for the last few
years.
 Increasing demand in US markets for motorcycle.
 Customer value quality parts and accessories.


10. Threats
 Harely ongoing capacity restraints caused a shortage of
supply and a loss in domestic market share recent year.
 Harely average buying age is 46 year old an increasing.
 Some competiton in HD have larger financial and
marketing resources and they are more diversified.
 Shift in buyers needs and testes.
 Customer loyalty in Europe and Asian countries.
 Cost could become expensive from international
importing- for example- in India 60% tax on total cost
for importing an automobile an 30% road tax.

11. Competition in Global Motorcycle Industry
 Rivalry criteria- performance, styling, breadth of
product line, image, reputation, quality of after sales
services, price.
 Difficulty US and European manufactures had in
attractive price sensitive european market.

12. Harley Davidson’s strategy to successfully
compete in motorcycle industry
 After LBO company felt need to rebuilt from the ground up.
 Products were unreliable and had poor performance in relation to
less expensive Japanease motorcycle.
 Greasy, run down shops.
 Management realized that a strong alliance to harley brand by many
bikers was their only strength.
 Market research to know customers- negative feedback.
 Adopted Japanease management practices.
 Improve dealer network.
 Promotion at bike raillers.
 1400 dealers- 75% space for accessories and earned 25-40% of their
earnings from the sales of apparel and accessories.
 Pilot program- clean and attractive showrooms to showcase
Harley’s improved motorcycles.

13. Distribution and Sales
 US- 684 independently owned full service Harley
dealership .In addition had 104 secondary retail
locations,68 Alternate Retail Outlets and 12 secondary
Retail Outlets.
 European Countries(32)-370 Harley Davidson
dealership.
 Asia Pacific-130 independent dealership in Japan, 49
independent Harley Davidson dealership in Australia
and New Zealand,
 Latin America-12 countries served 31 independent
dealerships.
 Canada-75 independent HD dealerships.