Hadley Davidson

Agenday Mission y Vision y SWOT y External Analysis y Internal Analysis y CPM y SPACE y IE y QSPM

Harley Davidsony Started in early 1901 by William S. Harley. y It was used by US Army in World War I and it was first time it y y y y y

was used in combat role. By 1920 Harley become the largest motorcycle manufacturer in the world. In World War II it was again supplied army specific motorcycle. In 2009 it first plan to export Harley to India. Recent financial turmoil led Harley to loose 43% of its net worth. At present it is the highest selling high-end motorcycle.

MissionWe fulfil dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments

VisionHarley-Davidson is an action-oriented, international company, a leader in its commitment to continuously improve [its] mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, Government, and society). Harley-Davidson believes the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities.

SWOT ANALYSISSTRENGTHy Strong brand equity. y Use of social media. y Innovation. y Strong financial position. y The product itself. y Pricing.

SWOTWEAKNESSESy Not diversified. y Ubiquitiouegory, products,

services y Old design is no more attractive to new generation. y Over leveraged financial position.

SWOT ANALYSISOPPORTUNITIESy Product and service

expansion. y Expanding into new demographics. y Expanding into newer markets. y Easy access of debt and finances.

SWOTTHREATHSy Competition y External changes

(government, politics, taxes, etc) y Lower cost competitors or imports y Product substitution

External Analysisy Harley-Davidson is one of the most admired and recognized companies

in the world today. motorcycle.

y Academy of Motorcycling for those interested in learning to ride a

y Riders-Edge the motorcycling academy of Harley-Davidsonintroduced

more than 1000 aspiring motorcyclists to the sport in2000. male in his mid-forties

y Average purchaser of a U.S Harley-Davidson motorcycle is a married

y Over two thirds of the sales of Harley-Davidson motorcycles are to

buyers with at least one year of education beyond high school.

External Analysisy Only about 9% of Harley-Davidson U.S retail motorcycles are to

women.

y Confidence in economy is directly proportional to the purchasing of

consumer items.

y Repeat business is strong as about 42% of motorcycle purchasers have

owned a Harley-Davidson previously. American icon.

y U.S Government and People are considering Harley-Davidson as an

y Opportunities in emerging economies [India, China] but uncertain

operating situations

External Analysisy Harley-Davidsons have a wide variety of products according

to Standard, Performance, Touring & custom.y Harley-Davidson is facing some legal problems in Asian

countries, in India there is 60% tariff and various other taxes will cause the price of the bike to double.y Noise pollution and some emission standards of Harley-

Davidson

y Bike is not up to the level of some countries across the globe.

Internal Analysisy Harley-Davidsons design and style is quite old compared to its

competitors.

y The economies of scale are low in this segment, which is the

reason why there are only four major players.

y Strategic alliance between Suzuki and Kawasaki in the areas of

product development, design, engineering, and manufacturing of motorcycles, this alliance strengthened both companies global motorcycle businesses. competition for across segments.

y In heavy bike segment, it hardly have any competitors but it has

Competitive Profile Matrix(CPM)

Competitive Profile Matrix(CPM)y Competitive Profit Matrix is a very important strategic tool

for a competitive company. y It composes of many factors:y Critical Success Factors. y Rating y Weight y Weighted Score y Total Score

Competitive Profile Matrix(CPM)There are some important point related to rating in CPM.y Rating is applied to each factor. y The response is poor represented by 1.0 y The response is average is represented by 2.0 y The response is above average represented by 3.0 y The response is superior represented by 4.0

SPACEy Its an online place for Harley Davidson fans. y Its an amazing website and it is created by lots of passion,

which can be understood by browsing through it. y It gives all the information for a about to be a member of HOG. y It creates a bounding among the Harley Davidson fans online.

Brand Strategyy The new Brand Strategy of Harley Davidson is Crowd

sourcing.y It shifts away from its traditional strategy of one size fits all to

crowd sourcing. y Carmichael-Lynch, who had been Harley Davidsons primary marketing partner for 31 years, announced the split between the two organizations in August, citing it had taken the Harley Davidson brand as far as they could go. y Harley Davidson now partnered with Victor & Spoils, a Boulder, CO based agency whose marketing research and application focus is based on crowdsourcing principles.

Brand Strategyy The idea behind this new strategy is to get and use the ideas

of so many bike enthusiast all across the world. y According to Harley Davidson, they want to listen to their customers and wants to create more passion. y Harley-Davidson isnt stopping there.The brand-focused company also plans to turn to other subject matter expert agencies to guide the new crowdsourcing concept, such as the newly appointed Starcom Agency based in Chicago, whose niche is media marketing.Starcom will handle all Harley Davidsons media marketing beginning in 2011, when the new work from Harley Davidson begins.

BCG Matrix

BCG Matrixy Harley has 77% sales growth y Harley also has 45% market share

Its very clear from the above two points that Harley has very high sales growth and good market share so it is featured in STAR section in BCG Matrix.

IETHE INTERNAL EXTERNAL (IE) MATRIX y The IE matrix positions the companys businesses in a nine cell matrix. It is an improvement on the BCG and is similar to the GE Business Screen. As with the BCG it uses two criteria to determine position.y y

INTERNAL STRENGTH (as measured by IFE) INDUSTRY ATTRACTIVENESS (as measured by EFE)

IE Matrixy We can understand IE need more information than BCG.

QSPMy The strategic-management process can be described as an

objective, logical, systematic approach for making major decisions in an organization (1, 2). It attempts to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. y The strategic-management process can be described as an objective, logical, systematic approach for making major decisions in an organization (1, 2). It attempts to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

QSPM

y Quantitative Strategic Planning Matrix or a QSPM gives an

tool for comparing feasible other actions. The QSPM method provides mainly stage 3 of the strategy formulation analytical framework.

The End