Internal Analysis Harley Davidson

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HD offers a broad selection of 32 products models, has 650 dealers in the US & has the largest market share in the US. However, Harley only has 7.7% of European market share (the second largest motorcycle market in the world) & 25.3% of the Asian/Pacific region.. Clearly, HD’s strenghts are in the US market, as 90% of Harley’s revenue comes from the US sales Concernig the liquidity ratio (ability to turn short term assets into cash) or the leverage ratio (how much a firm is financed by debt), HD is doing better than the industry average in his category & significantly better than its main competitor Honda. A threat for HD is certainly the price of the motorcycle in comparaison with the competitors. An explanation is that they want to use the best quality material but also the best labour competencies. They also invest a lot in the R&D department. Customer loyalty is HD’s strongest competitive advantage. 80% of the people who have an Harley & wént to buy an another motorcycle will buy an Harley again. As the figures of market share have showed, the expansion of HD is one, maybe the biggest challenge for the future. The female market is on the good way in the US but the development of the European & more specially the Asian market will asked to the management of HD to be innovative & creative. New models, new technologies, new communication will maybe necessary if they want to increase the market share on these different markets. The quality of HD motorcycle is know since years & years. However, Honda have develop a such high level of quality control process that the problems which can appears on a Honda motorcyle is less important with HD. Product selection is another area of weakness at Harley. While offering many products in the 1000cc+ category of motorcycles, Harley lacks an array of smaller bikes. Also, Harley is not diversified into other

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