Harley Case Evaluation of Alternative Strategies

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Evaluation of Alternative Strategies

Impacts of competitors on Harley Davidson:

• Trying to take the young market with Crotch Rockets and high performance bikes that

cater to a younger sector of the market

• Selling comparable motorcycles at lower costs to consumers

• Competitors are largely based outside the US and generally have more financial and

marketing resources

• Harley Davidson competes with mostly heavy, touring motorcycles which is approximately

half of the motorcycle market, leaving a lot of room for competitors in the other half of

the market

Strategy’s Harley Davidson can develop to increase sales:

• Open a museum that is expected to attract upwards of 350,000 tourists per year

• Acquisition of Buell can counter the decrease of sales in ageing baby boomers, by

appealing to the younger generation through their sporty/performance motorcycles

• Vertical integration through the V-rod increases sales to the youthful motorcycle

generation

• The use of horizontal integration by Harley Davidson opening their first dealership in

mainland china can attract more overseas customers

• Diversification of Harley’s product line with the introduction of Buell, V-Rod, and

recreational vehicles greatly increases appeal to a variety of consumers.

Diversification

• Pros

o Product appeal to both ageing consumers as-well-as younger generation

o Reputable brand name in foreign industry

o Variety of cruisers to fit all ages, genders, size

• Cons

o New technology allows for “copy-cat” motorcycles at lower cost

o Increase awareness in foreign market could cause customer loyalty to

decrease

Stability

• Pros

o Consistently established Purchaser Demographics

o

Sureness of revenue

o Firm standing in product market

• Cons

o Limited customer base due to type of product

o Loss is stock price from insufficient growth

o Little effort in innovation

Retrenchment

• Pros...