Question

Harley Davidson Motorcycles is losing market share and has been struggling in recent years.

Your mission is to find out what led to these poor results and to analyze their current situation using a SWOT analysis.

REQUIRED:

In memo form you are to report on the following:

1. Prepare a SWOT analysis for Harley Davidson.

2. Based on your SWOT analysis, identify what you consider the biggest threat to Harley Davidson and why you consider that to be the biggest threat.

3. What do you think that Harley Davidson should focus on to improve their financial performance? Why?

Answer 1

1. SWOT Analysis

SWOT means analysis of Strength, Weakness, Opportunity and Threat.

Strength

1. Huge Customer Base
2. High Quality of Products
3. Good image and Goodwill
4. Product range
5. Expert Employees – to make motorcycle
6. Good Financial Health
7. Strong Marketing Team
8. Good relation with suppliers
9. Good Research and development department
10. Two segment- Motorcycle business and Financial Services

Weakness

1. Less products
2. Limited Markets
3. Less one to one co-ordination with customers
4. Poor supply chain
5. To meat out Pollution control norms
6. High price
7. Lack of New customers
8. Not able to solve the mental blocks related with bike riding
9. Issues with organization structure and Financial Planning
10. Currency fluctuation of Different countries

Opportunity

1. Globalization
2. New products
3. Vertical product manufacturing alliance
4. New customer base women and children
5. Lower inflation can increase customer demand
6. Provide additional features
7. Add more business segments
8. Hedging
9. Expansion of existing business
10. Improve after sale services

Threat

1. Huge Competition
2. New invention
3. Other expertise
4. Employee Turnover
5. Narrow market of US
6. New policies of Government
7. Increasing employee cost
8. New environment policy of different countries
9. Reduction is present customer base
10. Employee Turnover

2. Biggest Threat for Company is new competitors because they can replace market position very soon. Due to following reasons

1. New and Better technology
2. Economic vehicles
3. New electricity vehicles
4. Cheaper Products
5. Large suppliers
6. Huge product diversification

3. Company need to improve financial performance due to following reasons:-

1. To meet future needs
2. To meet research and development expenses
3. Product diversification
4. Provide good return to investors
5. To make cheaper products
6. To meet high employee cost
7. To make product and factories environment friendly.