strategic management615 (week 4 assignment) need two responses to same question

Need responses and/or additional info on two students comments to the same question. If references are used I need them in APA format.

Discussion Question 4.3 – Harley Davidson (SWOT Analysis)

Continuing in your role as a Market Manager, prepare a brief SWOT analysis of Harley Davidson related to competing in various country markets. What does the SWOT analysis reveal about the overall situation? What strategic issues and problems does Harley Davidson management need to address? What are your recommendations to management?


Student response 1

Harley-Davidson, the iconic Milwaukee motorcycle manufacturer, has been leading the pack with their engineered designs for nearly 110 years. It all began in 1901, when 22 year old William Harley, his friend Arthur Davidson, and Williams’s brother Walter, worked together to engineer a motor-powered bicycle. Since then, the brand has held strong as the motorcycle industry’s leading company (Anonymous, 2012). In 2008, the company opened the doors to their namesake museum, giving lifelong fans and followers the opportunity to relive the history and beginnings of Harley-Davidson from their start in 1903, surviving the Great Depression, WW II, to where they have come today (Anonymous, 2008). “Riders will instantly feel at home at the Harley-Davidson Museum,” said Stacey Schiesl, Harley-Davidson Museum director. “And those who aren’t yet riders will be able to experience the passion that riders feel every time they fire up their motorcycles” (2008).

Analyzing Harley-Davidson’s strengths, weaknesses, opportunities, and threats begins with their biggest strength: their brand. As mentioned in the previous paragraph, for nearly 110 years Harley-Davidson has been a symbol of American entrepreneurial pride and their loyal customer population continues to expand. “The Harley-Davidson brand name thrives on events, adventure and the open road. Few corporate identities evoke anywhere near the same kind of passion. Or loyalty: You never see IBM or Dodge tattooed on a lad’s shoulder” (Charles, 1997). This brand doesn’t only go “skin-deep” to its’ American roots, but also boasts an international following as well. With international sales of about $1.35 billion (2008), equating to around 118,000 motorcycles a year, the brand – the culture, translates across the globe.

The weaknesses Harley-Davidson has experienced hit a peak with the economic recession of 2009. Being a luxury commodity by nature, motorcycle sales decreased as Americans began pinching their pennies. “Harley-Davidson Inc., which yesterday reported an 84% skid in third-quarter profit, expects the economy to remain weak through the end of next year as consumers shy away from costly purchases and tight credit makes it tough for those who want to buy” (Aeppel, 2009). In order to keep afloat, CEO Keith Wandell decided to put all their energy and focus on their namesake line, halting production of their Italian-based MV Augusta specialty sports models (2009).

The economic recession and downturn in profits forced senior executives of Harley-Davidson to reexamine their business strategy and look for more growth opportunities. The opportunities of the company are to expand overseas. Currently, Harley-Davidson’s overseas sales are at 31% and by 2014, the company projected to be at 40%. “That means opening more dealerships in markets such as India and China, where consumer spending is growing” (Aeppel, 2009).

Lastly, the threats to the Harley-Davidson company come in the form of other motorcycle companies. Triumph motorcycles have been making a dent in Harley-Davidson’s success in the UK market. “We really want to get hold of America,” said Jones, former head of industry group the CBI. “We have launched the Thunderbird straight into the middle of Harley-Davidson’s market and it has just been voted bike of the year in America, right in Harley-Davidson’s backyard,” he adds, referring to an award from a US magazine (Allen, 2010). Rivals in the motorcycle industry have been trying to find ways to overcome Harley-Davidson as a leader in the industry for years. Harley-Davidson needs to improve their business strategy and adjust to changes as the elements of economy, customer needs, and world environment.

Same question but a different student’s response. I need comments or additional info on this reponse as well.

Strengths

Harley Davidson has strong brand equity. Many people recognize the name and can associate it with their products. They also have a strong financial position and the ability to provide financial assistance to their consumers. Offering both new and used motorcycles broadens the price range for shoppers.

Weaknesses

Harley Davidson’s domestic sales account for approximately 67 percent of all sales. The dependence on domestic sales limits could have a negative impact during economic hardships. There is also a narrow product line, limiting the markets to operate in. High prices for new Harley Davidson motorcycles could deter some potential customers.

Opportunities

Expansion, in both domestic and international markets, is always an opportunity for Harley Davidson. In addition, there is also the opportunity to expand the product line-up and continue with innovation in products. The demographics of Harley Davidson change, offering opportunities into different market segments. The restructuring plans also open opportunity doors to improve products, improve sales, or reduce costs.

Threats

Competition is constantly developing and evolving. Substitute products in the marketplace may affect sales. Regulation, policies, taxes, tariffs, and other external issues are constantly changing. Emission standards for motor vehicles are changing and may soon affect motorcycles.

Harley Davidson is a well-known name. Having such strong brand equity is something that has proven to be beneficial for this company for over 100 years. However, the international sales growth has been slow. International riding seasons play a large factor in the slow growth. To combat slow international sales, Harley Davidson should adjust products and prices to better suit the international markets.

As emissions and other regulations change, Harley Davidson can choose to stay ahead of the game to avoid backlash from governments and consumers. Creating cleaner engines that use cleaner fuel could also open up markets to “green” consumers.