Discussion Question 43: Harley Davidson SWOT Analysis Contin

Discussion Question 43 Harley Davidson Swot Analysiscontinuing In

In this assignment, you are asked to prepare a brief SWOT analysis of Harley Davidson related to competing in various country markets, analyze what the SWOT reveals about the overall situation, identify strategic issues and problems the management needs to address, and provide your recommendations.

Paper For Above instruction

Harley Davidson, an iconic American motorcycle manufacturer founded in 1903, has established a formidable brand recognized worldwide for its quality, heritage, and symbol of American culture. Its long-standing history, loyal customer base, and strong brand equity serve as significant strengths. Notably, Harley Davidson's brand is associated with freedom, adventure, and the open road, which resonates across both domestic and international markets. Its global presence is bolstered by a dedicated following, and international sales contribute substantially to revenue, with about $1.35 billion in 2008, representing a robust market for expansion.

However, despite these strengths, Harley Davidson faces notable weaknesses that impact its competitive position. The company's reliance on the American domestic market, which accounts for around 67% of sales, exposes it to domestic economic downturns. The narrow product line, primarily focusing on heavyweight motorcycles, limits diversification and adaptation to emerging market demands. Additionally, high pricing can be a barrier to entry for potential buyers who seek more affordable alternatives. The economic recession of 2009 further exacerbated these issues, causing significant declines in sales and profits, prompting the company to shift focus toward its core product lines and suspend production of specialty models, such as those from MV Augusta.

From an external perspective, Harley Davidson's opportunities for growth lie predominantly in international markets. Expanding dealership networks in rapidly growing economies like India and China could capitalize on increasing consumer spending and rising middle-class populations. Diversification into emerging market segments and product innovation—such as developing eco-friendly motorcycles that meet new emission standards—present additional avenues for growth. Also, brand extension into non-motorcycle merchandise and apparel could leverage Harley Davidson's strong brand equity.

Conversely, the company confronts a range of threats that could hinder its growth and market share. Competition from both established motorcycle brands like Triumph and new entrants leveraging better price points or advanced technology pose persistent challenges. Substitutes in the form of scooters, electric bikes, and other forms of personal transportation are gaining popularity, especially among younger consumers. Regulatory pressures related to emissions standards, safety laws, and tariffs also threaten Harley Davidson's operational flexibility and cost structure. Furthermore, slow international sales growth—partly due to differing riding seasons and cultural preferences—limits the scope for substantial global market penetration.

Analyzing this SWOT reveals that Harley Davidson enjoys a strong brand and global presence but faces significant reliance on a predominantly U.S. market and challenges adapting to changing consumer preferences and regulatory environments. The company’s strategic issues include diversifying its product lineup, mitigating dependence on domestic sales, and innovating toward greener, more sustainable products. Operationally, Harley Davidson needs to enhance its global supply chain and market-specific offerings while maintaining its brand identity.

To address these challenges, Harley Davidson management should prioritize expanding into high-growth international markets through localized marketing strategies and tailored product offerings. Developing electric and environmentally friendly motorcycles could help preempt regulatory shifts and appeal to eco-conscious consumers. Diversification beyond heavyweight bikes into smaller, more affordable models could attract a broader audience, especially in emerging economies. Strengthening digital sales channels and enhancing customer engagement through experiential marketing will also be vital.

In conclusion, Harley Davidson's strengths provide a strong foundation, but strategically addressing its weaknesses and external threats is essential for sustained growth. Emphasizing product innovation, international expansion, and brand evolution toward sustainability will enable Harley Davidson to remain competitive in a rapidly changing industry landscape.

References

  • Charles, D. (1997). Harley-Davidson: America’s Motorcycle Icon. MotorBooks International.
  • Aeppel, K. (2009). Harley-Davidson’s Strategy Amid Economic Recession. The Wall Street Journal.
  • Anonymous. (2008). Harley-Davidson Museum Opens. Milwaukee Journal Sentinel.
  • Anonymous. (2012). The History of Harley-Davidson. Harley-Davidson Official Website.
  • Allen, M. (2010). Triumph’s Rise in Global Motorcycle Market. Motorcycle News.
  • Wunderlich, R. (2020). Strategic Management in the Motorcycle Industry. Journal of Business Strategy.
  • Smith, J., & Lee, K. (2019). Global Expansion Strategies of Harley-Davidson. International Journal of Business & Management.
  • Johnson, P. (2020). Electric Vehicles and Their Impact on Traditional Motorcycles. Environmental Science & Technology.
  • Kim, D. & Park, S. (2021). Regulatory Challenges in the International Motorcycle Market. Policy & Industry Journal.
  • Stewart, L. (2018). Brand Loyalty and Customer Perception in Motorcycles. Marketing Review.

Related Assignments