American heavyweight motorcycle manufacturer.
S) market has become increasingly saturated.
u Harley-Davidson maintains a competitive advantage on the basis of value.
u Harley-Davidson maintains a competitive advantage by the legendary mystique associated with Harleys (Nostalgia, & American dream).
u Harley-Davidson can be restored unlike Japanese clones.
u The only remaining American motorcycle manufacturer.
u Successful revitalization program.
.
Weaknesses:.
The huge amount of R&D expenses.
Massive advertising costs required.
Need of high return on investment.
High prices.
Opportunities:.
u The U.S market demand for high quality motorcycles for leisurely use.
u The worldwide motorcycle industry generates an estimated 5.5$ billion in annual sales.
u Growth potential for Harley-Davidson is tremendous in the Asia markets particularly Japan and China.
u The international market expanding and coalescing.
u Local (U.S) sliding tariffs.
Threats:.
There is a stiff competition given the economies of scale and vast resources base among the Japanese makers.
Competitor's introduction of new and innovative products.
Decline of overall sales in the industry. .
Key motorcycle companies are in constant fight to maintain market share. .
Unmatched supply to the foreign demand.
Organizational Objectives:.
q Supply the demand outside the U.S without loosing from the quality of the product.
q Make exports a larger portion of its business with optimistic figures reaching 50%.
Key Facts:.
q The worldwide motorcycle market industry generates an estimated 5.5$ billion in annual sales.
q Four major Japanese competitors (Honda, Yamaha, Kawazaki, and Suzuki).
q Harley-Davidson controls 62.7% of the U.S of the U.S heavyweight total market.
q Outside the U.S, the Japanese motorcycle manufacturers hold an 80 to 90 % share of the total market.
Key Decisions: .
q Implement a strategic operator control system as part of Harley's commitment to improve quality.