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Harley Davidson by Applying Porters Five Forces

Essay by   •  July 9, 2011  •  Case Study  •  296 Words (2 Pages)  •  1,875 Views

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1) a. Evaluate at least 5 major strengths , weakness, opportunities of Harley Davidson and rank them in terms of their importance..

b. Which of these are long term and why ?

2) Analyse Harley Davidson by applying Porters Five Forces. To what extent was Harley Davidson in a strong competitive position to meet future challenges.

3) a. Advice Harley Davidson of atleast 3 contingencies that are most likely to occur. What is the probability of each of these contingencies ?

b. Advice on the modifications to the current strategy to reduce the impact of these contingencies

When the motorcycle industry is not doing well, the company can be sustained by the revenue from the sale of clothes (Pandey, p3).

The company has a strong image due to its dominance in the motorcycle industry. It has developed good relationships with its customers ensuring that they are retained. Its strong distribution strategy also ensures that its products are available in many parts within the U.S. The company has also created good relationships with its business partners who help in the distribution of its products at the wholesale price.

The prices of the company's motorcycles are relatively high. This discourages low income earners from purchasing the company's products. In the U.S., the sale of H-D motorcycles reduced by 5.9 percent by the end of the first quarter of 2007, as compared to the similar quarter of 2006. The entire sales within the heavyweight motorcycle industry in the U.S. also reduced by 0.7 percent during the same period. The fact that dealers have been charging a higher price than those suggested by the manufacturers has led to the loss of many customers. The presence of high-quality motorcycles from Japan with a competitive price has caused the company to consider its pricing strategy (Pandey, p4).

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