Harley Davidson Pest and Five Forces
Introduction
Harley Davidson is America’s most successful manufacturing company. It has established itself as market leader for the heavyweight motorcycles and is the world’s most profitable motorcycle company. Harley Davidson has been around for over 100 year and although it sitting on a healthy position in term of profitable, heavy competition and negative trends raises the question on the length that Harley Davidson will continue to be a profitable company. This Strategic analysis will summarise the Macro-environment of the Motorcycle industry as well as summaries the effect of the five forces have on the profitability of motorcycle industry. Also an internal analysis will be conducted which will outline Harley Davidson resources and capabilities and then determine if any strategic capabilities are present as well as a gap analysis to determine if there exist any gaps between the elements of business strategy and then explore future strategies such as Diversification, vertical integration and international strategies.
Summary of Macro-environment PESTE
This is a PESTE analysis is about the impact of environmental influences on motorcycle industry which can be used to guide strategic decision making. The PESTE analysis involving analysing 5 keys factors of the Macro-environmental which includes Political/legal, Economic, Socio-cultural, Technological and Environmental.
There seem to be economic growth in the Asian countries particular China and India and therefore there is increasing disposable income in these countries. However in the US market and Europe market there seem to be sluggish growth and such factors in the US have resulted in decreased in disposable income (see appendix 1).
Disposable incomes will affect the demand for motorcycles. There is a need to determine whether a motorcycle is considered to be a luxurious good or a cheaper alternative to transport. If a motorcycle is considered as a luxurious good therefore increase in
Harley Davidson is America’s most successful manufacturing company. It has established itself as market leader for the heavyweight motorcycles and is the world’s most profitable motorcycle company. Harley Davidson has been around for over 100 year and although it sitting on a healthy position in term of profitable, heavy competition and negative trends raises the question on the length that Harley Davidson will continue to be a profitable company. This Strategic analysis will summarise the Macro-environment of the Motorcycle industry as well as summaries the effect of the five forces have on the profitability of motorcycle industry. Also an internal analysis will be conducted which will outline Harley Davidson resources and capabilities and then determine if any strategic capabilities are present as well as a gap analysis to determine if there exist any gaps between the elements of business strategy and then explore future strategies such as Diversification, vertical integration and international strategies.
Summary of Macro-environment PESTE
This is a PESTE analysis is about the impact of environmental influences on motorcycle industry which can be used to guide strategic decision making. The PESTE analysis involving analysing 5 keys factors of the Macro-environmental which includes Political/legal, Economic, Socio-cultural, Technological and Environmental.
There seem to be economic growth in the Asian countries particular China and India and therefore there is increasing disposable income in these countries. However in the US market and Europe market there seem to be sluggish growth and such factors in the US have resulted in decreased in disposable income (see appendix 1).
Disposable incomes will affect the demand for motorcycles. There is a need to determine whether a motorcycle is considered to be a luxurious good or a cheaper alternative to transport. If a motorcycle is considered as a luxurious good therefore increase in