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Harley Davidson
Case study
Harley Davidson
Presented by#
Dawood shah
MPA 4th semester
Introduction
• Harley-Davidson is an American motorcycle
manufacturer.
• one of two major American motorcycle manufacturers
• High price
• Harley-Davidson has problems in gaining
more market share in some European
countries (That’s one of the main markets for
Heavyweight motorcycles outside U.S)
• Required production is not met, analyzing
the future of Heavyweight motorcycle market
The Five-Forces Model of
Competition
Potential development
of substitute products
OPPORTUNITIES
The European demand for Harley Davidson is the highest 0.15 4 0.6
in the international market and represents the single largest motorcycle market in the world
The international heavy weight market is growing and is now larger than the U. S. 0.15 4 0.6
heavyweight market
Women and younger riders are increasing becoming 0.1 3 0.3
interested in bikes
Market share increasing in Europe and Asia for the last two 0.1 3 0.3
years
Increasing demand in US markets for bikes 0.1 2 0.2
THREAT
The European Union’s motorcycles noise standards are more stringent than 0.025 30.075
those of Environmental Protection Agencies in the U.S and increased environmental
stand
Some competitors of Harley Davidson have larger financial and marketing resources and 0.50 20.05
they are more diversified
Environmental protection laws 0.025 4 0.1
CRITICAL Weight Rating Weighted Weight Rating Weighted Weight Rating Weighted
SUCCESS FACTORS Score Score Score
STRENGTHS
The HOG (Harley Owners Group), which have a 7,50,000 members world wide is 0.05 2 0.1
the industry’s largest company sponsored
motorcycle enthusiast organization
WEAKNESS
Harley-Davidson has problems in gaining more market share in some 0.06 30.18
European countries (That’s one of the main markets
for Heavyweight motorcycles outside U.S).
They didn’t yet start its sales in India, one of the biggest markets 0.1 3 0.3
TOTAL 1 3.075
TOWS
Space matrix
SPACE
Space matrix
• Average value for FS = 3
• Average value for CA = -1.85
• Average value for IS = 4.17
• Average value for ES = -3.33
• Point on X axis = (-1.85+4.17)/2 =
1.16
• Point on Y axis = (3-3.33)/2 =
-0.165
Space
QSPM
Recommendations
• Increase diversity programming
• Explore opportunities for physical
plant expansion into other
geographic regions
• Increase sales to young customer
thanks