Harley

Business Analysis Part I – Harley-Davidson

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Management/MGT521.V7

Bob Ross

Business Analysis Part I – Harley-Davidson

Harley-Davidson (Harley) is an American motorcycle manufacturer founded during the first decade of the 20th century in Milwaukee, Wisconsin. Harley was one of two major American motorcycle manufacturers to survive the Great Depression, and is known for their distinctive rumble and sound. Harley trades on the NYSE as HOG, and in 2012, Harley’s current ranking is 458 in CNN Money’s annual ranking of America’s largest corporation (CNN Money, 2012).

A preliminary place to start when determining whether or not Harley would be a good investment would be a SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis.

Strengths:

* Approximately 50% market share in heavy weight motorcycle market

* Manufacturers well-built motorcycle

* Provides financing for motorcycles

* Has a strong branding name and slogan “Ride Free; No Cages Allowed”

* Customization of stock motorcycles is major revenue stream

* Relationship with suppliers is vital

* Good-will factor is paramount from employee to CEO, from supplier to customer

* Strong charity and community service connections with dealer communities

* Solid Customer loyalty

Weaknesses:

* Product pricing

* Market share has slipped in recent years

* Uncertainty with Willie G. retiring last March

* Discretionary income drives product sales

* A select group of customers buy Harley products

* Baby Boomers getting older

Opportunities:

* Demand is up 58% in Latin America

* Must market their products more competitively

* Younger riders and female riders are becoming a bigger customer base

* Customers perceive that a motorcycle is a more economical way to travel; Harley needs to capitalize on that perception

Threats:

* The economic downturn has taken a huge toll on the financial holding of the company

* Harley...