Harley Swot Analysis

Harley Swot Analysis

  • Submitted By: wizardivan
  • Date Submitted: 06/13/2010 3:27 PM
  • Category: Business
  • Words: 660
  • Page: 3
  • Views: 724

Harley Davidson is the foremost American motorcycle manufacturer and has left an indelible mark on American cinema and culture. It was created in 1903 by William Harley and two Davidson brothers. It weathered the Great Depression and came out as the largest manufacturers of motorcycles in America. During World War II, Harley motorcycles were used by the US military. However, their successes were eventually dampened by poor quality control and strong competition from Japanese companies like Kawasaki, Honda, Suzuki and Yamaha. By the 1970s they held only 6% of market share in America. Eventually it was bought out in 1981. Under new leadership and dramatic restructuring of their workforce, dealer, labor and supplier relationship, it would emerge as a new and redefined company.
Doing the SWOT analysis of Harley one can definitely surmise that Harley has great strengths when it comes to brand recognition and brand loyalty. The very sound of a Harley approaching is recognizable, and patented as well. Its customer loyalty is also remarkable. Additionally, after the tumultuous 1980s and the restructuring efforts, Harley now shares a close relationship with its employees and customers and actively addresses their grievances and opinions. Taking a page from its foreign competitors’ handbook, Harley now stresses greatly on quality control and uses a more extensive method i.e. total quality control. One of the major weaknesses as we have noticed over time is that it seems to be a luxury or snob good. A low end Harley costs as much as higher end Japanese motorcycles, and hence in that sense they seem to only attract a smaller segment of the market. Additionally, their customer base is further limited in that it is primarily American and also an aging demographic. The average age of a Harley owner went up from 35 in 1986 to 47 in 2007. This is indicative that the younger generations do not find Harley quite as appealing as the older ones.
This brings us to the...

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