499 Case Study Module Two
Strategic Management: External Analysis
Module Two - Case
Joseph Flores
MGT 499 Strategic Management
Introduction This case study is about determining ways Harley-Davidson Company would benefit by using the Porter’s 5 Forces and PEST analyses. These analysis tools are used to effectively determine the strengths and weakness of the business and provide feedback for executives to make decisive decisions based off the results.
Harley-Davidson built its reputation by manufacturing heavyweight motorcycles designed for highway cruising. The Porter’s 5 Forces tool provides H-D with an in depth look into the factors that promoted H-D through competitive internal rivalry businesses, entry, buyer and supply power and threats to external validity of substitutes (cite).
History
Harley-Davidson is an American based company with 100+ years of history and has had its fair share of economy difficulties. Since the introduction of motorcycles back in the late 1800s, there has been a competitive rival on which company will make the fastest, and latest style of two-wheeled engines.
In the 1980s, H-D was on the verge of bankruptcy; however, they made a tremendous comeback by incorporating new business tactics, such as redevelopment of customer services procedures, product differentiation through quality designs and manufacturing, and a clear vision of the future of the company (H-D website, n.d).
Five Forces Analysis
Internal Rivalry
This iconic company opened in 1903, entering into the motorcycle industry when Indian Motorcycle Company was their only competition (Research and Market report, 2014). Today, the competition continues for H-D, and Indian motorcycle with the recent launching their 2013 Indian Chief Vintage Final edition. This motorcycle mirrors the large frame, longer and more comfortable H-D cruiser (Fogelson, 2013). Competition between Indian and H-D became intense, and started the fierce rivalry amongst to two iconic brands (Fogelson,
Module Two - Case
Joseph Flores
MGT 499 Strategic Management
Introduction This case study is about determining ways Harley-Davidson Company would benefit by using the Porter’s 5 Forces and PEST analyses. These analysis tools are used to effectively determine the strengths and weakness of the business and provide feedback for executives to make decisive decisions based off the results.
Harley-Davidson built its reputation by manufacturing heavyweight motorcycles designed for highway cruising. The Porter’s 5 Forces tool provides H-D with an in depth look into the factors that promoted H-D through competitive internal rivalry businesses, entry, buyer and supply power and threats to external validity of substitutes (cite).
History
Harley-Davidson is an American based company with 100+ years of history and has had its fair share of economy difficulties. Since the introduction of motorcycles back in the late 1800s, there has been a competitive rival on which company will make the fastest, and latest style of two-wheeled engines.
In the 1980s, H-D was on the verge of bankruptcy; however, they made a tremendous comeback by incorporating new business tactics, such as redevelopment of customer services procedures, product differentiation through quality designs and manufacturing, and a clear vision of the future of the company (H-D website, n.d).
Five Forces Analysis
Internal Rivalry
This iconic company opened in 1903, entering into the motorcycle industry when Indian Motorcycle Company was their only competition (Research and Market report, 2014). Today, the competition continues for H-D, and Indian motorcycle with the recent launching their 2013 Indian Chief Vintage Final edition. This motorcycle mirrors the large frame, longer and more comfortable H-D cruiser (Fogelson, 2013). Competition between Indian and H-D became intense, and started the fierce rivalry amongst to two iconic brands (Fogelson,
References: Boyer, L., (2013, Apr). Harley-Davidson supplier to occupy former Caterpillar Plant. York Daily Record website retrieved at http://www.ydr.com/ci_22728940/harley-davidson-supplier-syncreon-move-into-former-caterpillar Fogelson, J., (2014, Jun) Fogelson, J., (2013, Aug). Indian Motorcycle Rides Again. Forbes website retrieved at http://www.forbes.com/sites/jasonfogelson/2013/01/07/indian-motorcycle-rides-again/ Geewax, M., (2014, Oct 23) Harley-Davidson. (2014) Annual Review 2013. Retrieved from: http://ar.harley-davidson.com/ Harley-Davidson Harley-davidson. (2014, Apr 23). Financial Times Retrieved from http://search.proquest.com/docview/1527778012?accountid=14749 Isidore, C., (2014, Nov 13) Kellerherm J. B., (2013, Jun). Analysis: As boomers age, Harley hunts for younger riders. Reuters website retrieved at http://www.reuters.com/article/2013/06/21/us-harleydavidson-boomers-analysis-idUSBRE95K0GU20130621 Lee, B., (2014) Madson, B, (2014 Apr). Indian Sales Spur Polaris Growth in Q1. Motorcycle USA website retrieved at http://www.motorcycle-usa.com/744/18318/Motorcycle-Article/Indian-Sales-Spur-Polaris-Growth-in-Q1.aspx McBee, R Recreation Vehicle Industry Association (RVIA), (n.d) website retrieved http://www.rvia.org/?ESID=FAQs Stock, K., (2014)