Preview

Porter's Five Forces Analysis done on Harley Davidson

Good Essays
Open Document
Open Document
1159 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Porter's Five Forces Analysis done on Harley Davidson
Competitor Analysis
Harley Davidson remains as a dominant force in the heavy weight motorcycle industry; upholding 50% share in the heavy weight motorcycles. This year they celebrate their 110th Anniversary proudly as the only major motorcycle manufacturer to completely focus on motorcycles. (Melief, Bundgaard & Hathaway, 2006)
Other major players in the Motorcycle Industry are, Honda, Yamaha, Suzuki that also have their other major product lines inclusive of cars, watercraft, musical equipment and etc.
Assessment of Strengths and Weaknesses of Current and Potential Competitors
Porters Five Forces Analysis

Source: Vector (2012)
Internal Rivalry
The heavyweight motorcycle market is justly concentrated with four major companies manufacturing these vehicles. Harley Davidson being one of the most experienced within the industry, Honda, Suzuki and Yamaha are the competitors that are all from Japan. Over the past few years many market for heavyweight motorcycles has increased annually, but experts are predicting even though the market is growing it will slow down in the years to come. (Melief, Bundgaard & Hathaway, 2006)
The Competitive challenge is high in motorcycle industry. Most of the time motorbikes are counted as a luxury product and pricing the products can be complex. (Oxbridge Writers, 2012) Harley Davidson offers spare parts, extended warranties, and innovative and environmental friendly motorbikes for their customers, this singularizes them from their competitors.
Japan’s companies have marked their success by establishing a strong competitive place in the market using cheap prices as their strategy. This affects customers perception on Harley Davidson’s place in the market and their prices. However, those having a predominant place in this sport do have conflicting interests, i.e. Yamaha and Honda have diversified into musical instrument and other motor vehicles. . (Oxbridge Writers, 2012) This results Harley-Davidson in

You May Also Find These Documents Helpful

  • Good Essays

    Thorr Motorcycles is a $5 billion company producing a wide range of motorcycles. In addition to producing motorcycles, the company, also have licensing programs; sell T-shirts, shoes, toys for the motorcycle. The company offer services in dealer training, dealer software packages, motorcycle rental, and rider training (University of Phoenix, 2013). The sales of high quality of motorcycles are declining. The cost of a princely motorcycle was $200 in 1901. Today, a heavyweight powerful cruisers cost $25,000 (University of Phoenix, 2013). The company must develop a marketing strategy to improve sales for Thorr Motorcycles.…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Good Essays

    New generation riders that exists in Asian markets is more attracted to sleeker, less costly and a more swift motorcycles. Although there is a high potential for Harley Davidson to be profitable in Asian markets they are faced with barriers to trade. Such barriers includes government regulations and trade guidelines which limits foreign manufacturer’s ability to penetrate the market. Additionally one of Harley Davidson’s biggest competitors in the Asian market is Yamaha which is a Japanese motorcycle manufacturer. Due to this Harley Davison is confronted with arduous rivalry. Yamaha targets customers that are at the lower end market and focuses their manufacturing on affordable motorcycles with smaller engines, electronic capabilities and lighter reinforcement in contrast to Harley Davidson’s heavy steel frames.…

    • 866 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Harley Davidson’s net profit in 2010 was 146.55 million versus a net loss of 55.12 million in 2009 (Global Data, 2011). There are three key elements in which the company has to improve to continue making profit. First, resolve the Unfunded Employee Post-retirement Benefit plan to keep employees producing a good product and maintain a top level company/employee relationship. Secondly, intense competition in the motorcycle market has to be addressed if Harley Davidson plans to increase sales and profit, finally, competition is strong and the brand name alone will not increase its profitability. Strategic Global Branding is the main key to Harley Davidson’s continued rise, and without it the company will stagnate and be reduced to a minor player in the motorcycle industry.…

    • 1605 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. Founded in 1903 in Milwaukee, WI, Harley just celebrated its 100th anniversary with a series of events around the world that culminated in hundreds of thousands of motorcyclists rallying last summer on the shores of Lake Michigan. In 1929, there were 241 motorcycle manufacturers in the US. After the Depression, only two remained: Harley and Indian. By 1953, Indian went out of business, leaving Harley-Davidson as the only American motorcycle manufacturer. Financial difficulties in the 1970’s led to the parent company, AMF putting the motorcycle division up for sale. Without a buyer, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed goods, such as apparel and related accessories. Now a publicly owned company, Harley has scored double digit growth for eighteen consecutive years. Harley transformed itself into a strong marketing company with a focus on lifestyle image and product quality.…

    • 2396 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Harley Davidson realized that it sells customers much more than a two wheeler vehicle. The company sells customers a feeling of independence, individualism and a sense of freedom that “gets into the soul” of the customers. The company realized that the customers pride and strong emotional attachments make Harley Davidson ownership more of a lifestyle rather than a product consumption experience. In order to enhance and support the customer’s lifestyle, the company networks with its riders. , Harley-Davidson engages its customer base through company-sponsored travel adventures, events, and other things, such as clothes and accessories both for riders and for those who simply like to associate with the brand. This interaction with the customer base, serves to cultivate a strong customer relationship and also as an important marketing tool.…

    • 438 Words
    • 1 Page
    Good Essays
  • Good Essays

    One of the biggest opportunities in the motorcycle industry is the growth trend of 3.3% in unit sales over the past five years, mostly in the United States and Asia/Pacific markets. Also, the rapid growth of women ridership offers the potential of an even larger customer base in the future. In the sport segment in particular, growth in the next few years is expected between 2% and 3%. The history and brand recognition of Ducati will help them to attract some of these new customers related to industry growth.…

    • 1538 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Currently the company is made up of two different business segments; motorcycle and related products and a financial services segment (Harley, 2013). Most of the income for Harley Davidson comes from the motorcycle and related products segment. There are 5 major bikes lines manufactured by Harley Davidson which include Touring, Dyna, Soft Tail, Sportster and V-Rod models. In addition, there is an entire line of Harley Davidson clothing and accessories. At a Harley store it is possible to purchase anything from kids Harley socks to Harley shot glasses. The financial services…

    • 2286 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    HARLEY DAVIDSON STUDY CASE

    • 3344 Words
    • 14 Pages

    The purpose of this research is to analyze and understand the strategy that Harley Davidson has been using in order to success and overcome its competence like Kawasaki, Honda, Yamaha and Ducati. Also, the reader will be able to make a competitive force analysis and identify all the strengths, weaknesses, opportunities and threats Harley Davidson could have on a worldwide market.…

    • 3344 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Harley-Davidson, Inc., the only U.S. motorcycle manufacture still in business, dominated the superheavyweight motorcycle market with a 62.3 percent share while Honda had 16.2 percent, Yamaha had 7.2 percent, Kawasaki had 6.7 percent, Suzuki had 5.1 percent, and BMW had 2.5 percent in 1990 (592&596).…

    • 878 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    BMW Motorcycles is a division within the BMW Group. As such their mission is tied to that of the parent company. On the BMW Group website it is noted as follows:"Identifying potential and encouraging growth. Knowing what we represent. Recognizing where our strengths lie and making the best use of every opportunity. Following a clear strategy. Goals we have attained are in essence the point of departure for new challenges.…

    • 2820 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    * Despite faring badly in the 1970’s due to the threat that Japanese Competitors posed, by 2006 the company held over half the share of the US heavyweight motorcycle market, and a third of this market worldwide. This was as a result of a new strategy that was implemented in the 1980’s, that shifted the focus of the company onto its customers.…

    • 3924 Words
    • 16 Pages
    Good Essays
  • Good Essays

    In 1969 AMF, a recreational equipment conglomerate, bought the company and manage it focusing in its worthy products so by 1976 Harley-Davidson offered 4 models while Japanese companies offered 20 to 25 models and its market share dropt to 5 percent. But still they where leaders of the heavy bikes market -700cc and up.…

    • 816 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The case describes Honda’s move into the US motorcycle market in the 1960's. Honda's strategy was directed towards high volumes per model, providing high productivity, and low costs. Honda succeeded in the US by introducing a new product (small motorcycles, 50cc) that expanded the motorcycle market in the US through price generic competitive strategy. Honda was prepared with capacity, capital and technical capability to enter the US market.…

    • 609 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    system analysis and design

    • 4204 Words
    • 17 Pages

    Because of this, motorcycle dealership industry had become a means of revenue for a lot of establishments. The rise of motorcycle manufacturers and distributors has faced an uphill climb in the market thus making the competitions rough between these companies. Companies in this industry can either sell new and slightly used motorcycles. They also produce innovative designs and features, offer repair services, parts, and accessories. No major companies dominate the industry; most have a single retail outlet.…

    • 4204 Words
    • 17 Pages
    Powerful Essays
  • Better Essays

    Ymki 5 Forces Analysis

    • 1121 Words
    • 5 Pages

    In the Indonesia motorcycle market, several significant barriers to entry exist, making it difficult for new competitors to enter the market easily.…

    • 1121 Words
    • 5 Pages
    Better Essays