HARLEY DAVIDSON INC. Harvard Case Solution & Analysis


Harley Davidson Inc.

Key issues for Harley Davidson Inc.

 There are some issues which the company is currently facing however; the main issue will be discussed in this section. The first major threat is the prices of the products as the company is charging relatively high prices as compared to its competitors.In addition, the company has maintained its prices in order to increase its revenue while the economy is facing low GDP. Furthermore, if the company wants to increase its business globally then it has to reduce its prices. However, the strategy will not reduce the profitability as the company will be able to attract more customers by using this strategy.The other major issue is that the company has designed similar type of heavy bikes for all the customers, the company has to diversify its product line and to design a luxury heavy bike for upper class customers and a medium priced bike for middle and low income customers.

The company’s production line is not aligned with the market needs as it has been expected that the sales volume of heavy bikes will increase in near future and if the demand increases, the company will not able to meet it. In order to meet the demand, the company has to align its production line along with the demand. However, if the company successfully upgrades its production capacity, it will be able to increase its market share.

The company is also suffering in the European market just because of high prices, as the European economy is in recession and therefore, the company has to develop an alternative strategy in order to sustain its market share and revenue in the European region. It is recommended that the company has to lower its prices in this region by anymeans in order to sustain its business while it also have to make products as per the needs of the customers.

Moreover, there are some potential competitors,who are saturating the market with similar products as HD and they are offering them at lower prices compared to HD. These potential competitors include Suzuki, Yamaha, Kawasaki and Honda. In addition, these competitors are financially strong and all these competitors including the HD has almost 92% of the market share in the heavy bike industry.The distribution strategy of the company is quite typical as the company is not allowing the dealers to keep multiple brands;therefore company has to allow its dealers to keep multiple brands in order to allow the buyers to see the difference in HD and other brands’ heavy bikes.

 Qualitative e-Scan of the Company

Internal Analysis

The company’s present strategy is giving the company sustainable competitive advantage however it is not sure that this competitive advantage will sustained in future. Therefore, the internal analysis shows that the company has a good brand image and market position, the company also has strong relationships with its up and downstream partners, the relation is based on trust, promising quality and superior customer value. Moreover, the company is operating its two major business units which are the Harley Davidson heavy bikes and Financial services, while the company is the largest heavy bike manufacturer in USA............

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