Submitted by: Submitted by luvtahboard247
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Words: 684
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Category: Business and Industry
Date Submitted: 09/18/2012 09:28 AM
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...