Internal Factors:

TN
Factors
IF1
Harley-Davidson heritage is symbolic of the American dream.
IF2
IF3

Harley-Davidson became an icon for American people for more than

100 years
Harley-Davidson motorcycle was being apart to its competitors because
of its well-known mark and tattoos engraved on every motorcycle they
make.

IF4

Harley-Davidson strong relationship built on trust and respect with

suppliers, dealers and customers.

IF5

Harley -Davidson is the only major American motorcycle manufacturer.

IF6

The Harley-Davidson owners group is the largest company sponsored

motorcycle enthusiast organization.
Harley-Davidson consider the availability as financing through Harleys
Davidson financial services as a competitive advantage.

IF7
IF8

Harley-Davidson created its Academy of Motorcycling to reach the nonriders customers.

IF9

Harley- Davidson Pioneered the segment of heavyweight motorcyclemarket.

Harley- Davidson manufactures five families of motorcycle touring,
dyna, soft ail, sportster.
In 1986, Harley-Davidson regains super heavy weight market beating
up HONDA

IF10
IF11
IF12

Harley-Davidson actively promotes the motorcycling lifestyle in the

form of event, rides, valise and Harveys owner group.

IF13

Harley-Davidson trademark creates awareness to the customer and

non-riding public.

IF14

CVO program of Harley- Davidson give unique advantage to the

competitors.
The larger-displacement custom and touring motorcycle are the most
profitable for Harley - Davidson

IF15
IF16

Harley-Davidson do charity works they focus giving on education and

revitalization and also health,enviroment

IF17

The last 21yrs Harley-Davidson motorcycle led the industry in U.S

IF18

Harley-Davidson Close its several facilitates that cause their sales to

decrease.

IF19

Harley-Davidson motorcycles was only limited for the upper class

people because of its high price.

IF20

Harley- Davidson Financial services decrease 61 percent operating

income in 2008.

IF21

In 2008 shipment of Harley-Davidson motorcycle decrease by 8.2

percent compared last year.

IF22

Harley-Davidson relies on few suppliers for their motorcycle parts.

IF23

Harley-Davidson have some quality problems because they expanded

production quickly

IF24
IF25
IF26
IF27
IF28
IF29
IF30
IF31
IF32
IF33
IF34
IF35
IF36
IF37
IF38
IF39
IF40
IF41
IF42
IF43

Evaluation

Reference

External Factors:
TN
EF1
EF2
EF3

EF4
EF5
EF6
EF7
EF8
EF9
EF10
EF11
EF12
EF13
EF14
EF15
EF16
EF17
EF18

EF19
EF20
EF21
EF22
EF23
EF24
EF25
EF26
EF27
EF28
EF29
EF30
EF31
EF32
EF33
EF34
EF35
EF36
EF37

rnal Factors:
Factors
Women and younger riders are increasing and becoming interested in bikes.
The international heavy weight market is growing and become larger than the US
heavy weight markets.
Customers think that owning Harley-Davidson motorcycles makes them passionate
and well known and become one of the family.
Demand in India for Harley-Davidson motors was fast growth.
European demand for Harley- Davidson is the highest in the international market.
Increasing in the number of motorcycle riders.
The heavy weight motorcycles market id highly competitive.
Competitors of Harley-Davidson motorcycle have large financial and marketing
resources and they are more diversified than Harley-Davidson.
Cost of importing internationally could become expensive.
Economic crisis result to the declining stock price on Harley-Davidson motorcycle.
Japanese firms importing lower price motorcycle and was able to capture the large
portion of Harley-Davidson motorcycle market.
Discretionary spending on high-end consumer goods such as motorcycles has
declined drastically.
Registration for Asia pacific market decreasing.
Honda is the Worlds largest motorcycle.
High import tariffs for motorcycles kept Harley-Davidson out of the market.

Evaluation

Reference

Internal Factor Matrix

TN

IF1

IF2

IF3

IF4

IF5

IF6

IF7

IF8

IF9

10

IF10

11

IF11

12

IF12

13

IF13

14

IF14

#
1

IF15

IF16

IF17

IF18

IF19

IF20

IF21

External FacTN
#
EF1
1

EF2

EF3

EF4

EF5

EF6

EF7

7
8
9
#
1

EF8

EF9

EF10

EF11

EF12

EF13

EF14

EF15

EF16

10
11

Critical Factors

Harley-Davidson heritage is symbolic of the American dream.

Harley-Davidson motorcycle was being apart to its competitors because of its wellknown mark and tattoos engraved on every motorcycle they make.
Harley-Davidson strong relationship built on trust and respect with suppliers,
dealers and customers.
Harley -Davidson is the only major American motorcycle manufacturer.
The Harley-Davidson owners group is the largest company sponsored motorcycle
enthusiast organization.
Harley-Davidson consider the availability as financing through Harleys Davidson
financial services as a competitive advantage.
Harley-Davidson created its Academy of Motorcycling to reach the non-riders
customers.
Harley- Davidson Pioneered the segment of heavyweight motorcycle-market.
Harley- Davidson manufactures five families of motorcycle touring, dyna, soft ail,
sportster.
Harley-Davidson actively promotes the motorcycling lifestyle in the form of event,
rides, valise and Harveys owner group.
Harley-Davidson trademark creates awareness to the customer and non-riding
public.
Harley-Davidson do charity works they focus giving on education and revitalization
and also health,enviroment
The larger-displacement custom and touring motorcycle are the most profitable
for Harley - Davidson
CVO program of Harley- Davidson give unique advantage to the competitors.
WEAKNESS
They over-dependent in U.S market because most of their revenue coming from
U.S
Harley-Davidson Close its several facilitates that cause their sales to decrease in
2008.
Harley-Davidson motorcycles was only limited for the upper class people because
of its high price.
Harley- Davidson Financial services decrease 61 percent operating income in
2008.
In 2008 shipment of Harley-Davidson motorcycle decrease by 8.2 percent
compared last year.

Harley-Davidson relies on few suppliers for their motorcycle parts.

Harley-Davidson have some quality problems because they expanded production
quickly
Total WAS

Critical Factors
Opportunities
Women and younger riders are increasing and becoming interested in bikes.
The international heavy weight market is growing and become larger than the US
heavy weight markets.
Customers think that owning Harley-Davidson motorcycles makes them
passionate and well known and become one of the family.
Demand in India for Harley-Davidson motors was fast growth.
European demand for Harley- Davidson is the highest in the international market.
Increasing in the number of motorcycle riders.
Customer value quality parts for motor bikes.

threat
The heavy weight motorcycles market id highly competitive.
Competitors of Harley-Davidson motorcycle have large financial and marketing
resources and they are more diversified than Harley-Davidson.
Cost of importing internationally could become expensive.
Economic crisis result to the declining stock price on Harley-Davidson motorcycle.
Japanese firms importing lower price motorcycle and was able to capture the large
portion of Harley-Davidson motorcycle market.
Discretionary spending on high-end consumer goods such as motorcycles has
declined drastically.
Registration for Asia pacific market decreasing.
Honda is the Worlds largest motorcycle.
High import tariffs for motorcycles kept Harley-Davidson out of the market.

Total WAS

Quantitative
Assessment
Weight

Rate

0.080

4.00

Weighted
Score
0.32

0.048

3.00

0.14

0.060

4.00

0.24

0.060

4.00

0.24

0.048

4.00

0.19

0.060

4.00

0.24

0.050

4.00

0.20

0.070

4.00

0.28

0.030

3.00

0.09

0.030

3.00

0.09

0.048

3.00

0.14

0.060

4.00

0.24

0.030

3.00

0.09

0.070

4.00

0.28

0.060

1.00

0.06

0.045

2.00

0.09

0.030

2.00

0.06

0.050

1.00

0.05

0.045

2.00

0.09

Average Weight

0.030

1.00

0.03

1.00

0.00

1.00

Quantitative
Assessment
Weight

3.17

0.09

4.00

Weighted
Score
0.36

0.06

2.00

0.12

0.04

3.00

0.12

0.05

3.00

0.15

0.07

3.00

0.21

0.09

4.00

0.36

0.03

3.00

0.09

0.06

1.00

0.06

0.09

4.00

0.36

0.06

2.00

0.12

0.05

2.00

0.10

0.07

3.00

0.21

0.05

2.00

0.10

0.04

1.00

0.04

0.09

3.00

0.27

0.06

1.00

0.06

1.00

Rate

0.00
2.73

Average Weight

0.048

0.0625

Competitive Profile Matrix

#

1
2
3
4
5
6
7
8
9
10
11
12
13

Competitors>
Competitive Factors
Weight
Advertising
Global Expansion
Effectiveness of Financing Strategies
Management
High performance Motors
Style and Design
Product Selection
Branding
Product Quality
Price Competitiveness
Market Share

0.06
0.12
0.09
0.07
0.07
0.09
0.11
0.09
0.11
0.08
0.11

Total Weighted Average Score

1.00

Average Weight

0.090909

HONDA
Rate
4.00
4.00
3.00
4.00
3.00
3.00
4.00
2.00
4.00
4.00
4.00

HONDA
Weighted
Score
0.24
0.48
0.27
0.28
0.21
0.27
0.44
0.18
0.44
0.32
0.44
0.00
0.00
0.00
3.57

Rate
3.00
3.00
3.00
4.00
4.00
4.00
4.00
3.00
3.00
2.00
3.00

BMW
Weighted
Score
0.18
0.36
0.27
0.28
0.28
0.36
0.44
0.27
0.33
0.16
0.33
0.00
0.00
0.00
3.26

Rate
4.00
4.00
3.00
4.00
2.00
3.00
4.00
2.00
3.00
4.00
4.00

SUZUKI
Weighted
Score
0.24
0.48
0.27
0.28
0.14
0.27
0.44
0.18
0.33
0.32
0.44
0.00
0.00
0.00
3.39

YAMAHA
Rate
4.00
3.00
4.00
4.00
2.00
3.00
4.00
2.00
3.00
4.00
3.00

YAMAHA
Weighted
Score
0.24
0.36
0.36
0.28
0.14
0.27
0.44
0.18
0.33
0.32
0.33
0.00
0.00
0.00
3.25

HARLEY-DAVIDSON
Weighted Score
0.24
0.24
0.36
0.28
0.28
0.27
0.22
0.36
0.33
0.08
0.22
0.00
0.00
0.00
2.88

Rate
4.00
2.00
4.00
4.00
4.00
3.00
2.00
4.00
3.00
1.00
2.00

Vision, Mission, Objectives

#
Harley-Davidson is an action-oriented, international company, a leader in its commitment to Err:509
continuosly improve its mutually beneficial relatioships with
stakeholders( customers,suppliers,employees, shareholders, government, and society.).
Harley-Davidson believes the key to success is to balance stakeholder's interest through the
empowerment of all employees to focus on value-added to activities.

TN
IF1

We fulill dreams through the experiences of motocycling, by providing to motorclist to the

general public an expanding line of motocycles, branded products and services in selected
market segments.

Err:509

IF2

This Philosopy is what helps set Harley apart from its competitors. According to harley, it
takes more than just building and selling motorcycles to fulfill the dreams of its customers. It
takes unforgettable experiences, and Harley is dedicated to creating experiences and
developing relationships with all of its stakeholders. Harley believes that is what sets it apart
from the crowd, and why its brand strenght is legendary.

IF3

IF4

IF5

IF6

IF7

IF8

Err:509

IF9
Err:509
IF10

IF11
#

TN

Opportunities
Women and younger riders are increasing and becoming interested in
bikes.

EF1

SO 1

Harley-davidson should open

de

EF2

The international heavy weight market is growing and become larger

than the US heavy weight markets.

SO 2

HDFS should offer low intere

loans to give enough time to

EF3

Customers think that owning Harley-Davidson motorcycles makes them SO 3

passionate and well known and become one of the family.

They can use HOG(Harley O

through rides,rallies and other
to exp

EF4

Demand in India for Harley-Davidson motors was fast growth.

SO 4

EF5

European demand for Harley- Davidson is the highest in the

international market.

SO 5

EF6

Increasing in the number of motorcycle riders.

SO 6

EF7

Customer value quality parts for motor bikes.

SO 7

SO 8

9
#

0
0

0
0

SO 9
SO 10

ST 1

Harley-davidson should open fa

ST 2

Harley-davidson should find a

#
2

TN
EF8

Threats
The heavy weight motorcycles market id highly competitive.

EF9

Competitors of Harley-Davidson motorcycle have large financial and

marketing resources and they are more diversified than HarleyDavidson.

EF10

Cost of importing internationally could become expensive.

ST 3

EF11

ST 4

EF12

Economic crisis result to the declining stock price on Harley-Davidson

motorcycle.
Japanese firms importing lower price motorcycle and was able to
capture the large portion of Harley-Davidson motorcycle market.

EF13

Discretionary spending on high-end consumer goods such as

motorcycles has declined drastically.

ST 6

8
9

EF14
EF15

Registration for Asia pacific market decreasing.

Honda is the Worlds largest motorcycle.

ST 7
ST 8

ST 5

Strengths
Harley-Davidson heritage is symbolic of the American dream.

#
11

TN
IF16

Err:509

14

IF17

Harley-Davidson motorcycle was being apart to its competitors because

of its well-known mark and tattoos engraved on every motorcycle they
make.
Harley-Davidson strong relationship built on trust and respect with
suppliers, dealers and customers.

IF14

IF18

Harley -Davidson is the only major American motorcycle manufacturer.

IF19

The Harley-Davidson owners group is the largest company sponsored

motorcycle enthusiast organization.

IF20

Harley-Davidson consider the availability as financing through Harleys

Davidson financial services as a competitive advantage.

Harley-Davidson created its Academy of Motorcycling to reach the nonriders customers.

Harley- Davidson Pioneered the segment of heavyweight motorcyclemarket.

Harley- Davidson manufactures five families of motorcycle touring,

dyna, soft ail, sportster.

Err:509
Harley-Davidson actively promotes the motorcycling lifestyle in the form
of event, rides, valise and Harveys owner group.

Harley-Davidson trademark creates awareness to the customer and nonriding public.

SO ACTIVITIES
Harley-davidson should open their production in Ouside the U.S which have large
demand(S3,S4,S6,O3,O6,O7)

HDFS should offer low interest rate and extend the lending period for motorcycle
oans to give enough time to the customers to pay the debt and encourage more
customers.

WO 1
WO 2

WO ACTIVITIES
Harley-Davidson should produce low price motorcycl
customers(W3,O3,O6)

Harley-Davidson could expand geographically and off

because the number of riders in Asia is increasing, t
boost their net revenues aside from US segme

They can use HOG(Harley Owners Group) to share the experience and network
WO 3
ough rides,rallies and other events and the academy of motorcycling to learn and
to experince a harley davidson life.
WO 4
WO 5
WO 6
WO 7
WO 8
WO 9
WO 10
ST ACTIVITIES

ley-davidson should open factory in india,Europe and Asia to lessen imports tariffs

rley-davidson should find a suppliers in Asia and Europe region to lessen the cost

WT ACTIVITIES

Weaknesses
Harley-Davidson Close its several facilitates that cause their
sales to decrease in 2008.

Harley-Davidson motorcycles was only limited for the upper

class people because of its high price.
Harley- Davidson Financial services decrease 61 percent
operating income in 2008.
In 2008 shipment of Harley-Davidson motorcycle decrease by
8.2 percent compared last year.

Harley-Davidson relies on few suppliers for their motorcycle

parts.
Harley-Davidson have some quality problems because they
expanded production quickly

WO ACTIVITIES
arley-Davidson should produce low price motorcycle to attract low income
customers(W3,O3,O6)

arley-Davidson could expand geographically and offers lightweight motors

ecause the number of riders in Asia is increasing, this expansion can also
boost their net revenues aside from US segment. (W1,O2,O6)

WT ACTIVITIES

Quantitative Strategic Profile Matrix (QSPM)

#
TN
1
2
3
4
5
6
7
8
9
10
#
1
2
3
4
5
6
7
8
9
10
#
1
2
3
4
5
6
7
8
9
10
#
1
2
3
4
5
6
7
8
9
10

Critical Factors
Strenghts

Weaknesses

TN

Opportunities

Threats

Total WAS

Weight

1
Rate

0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05

Weighted Score
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
2.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Rate

3
Weighted Score
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Rate

4
Weighted Score
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Rate

5
Weighted Score
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Rate

Weighted Score
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

RECOMMENDATION
VISION:
MISSION:
STRATEGIC DIRECTION #1:
KEY RESULT AREA

PERFORMANCE INDICATOR

RECOMMENDATION

RESOURCES
PROGRAM/ ACTIVITIES

TIMELINE

BUDGET

URCES
KEY RESOURCE
PERSON

OTHERS