Abstract

This paper will explain as introduction shortly about how the firm Harley-Davidson survived

under the bad circumstances. Then it will mention the vision and mission statements of the

company. Next it will discuss comparative analysis between Harley-Davidson and Honda, the

opportunities and threats externally, as well as strengths and weaknesses internally.

Introduction

Harley-Davidson is an American cultural and business icon, established in 1903 by Harley

and Author Davidson. Harley-Davidson has managed to survive for many decades. Through

depression, recessions, world wars, high technology developments, Japanese competition,

and increasing government regulation, Harley-Davidson has maintained operations where

other U.S. motorcycle firms have failed. However, the question is how HD managed to

survive, kept the doors open while Indian motorcycles competing and How has it maintained

its attractiveness with outlaw bikers, investment bankers, as well as what this company keeps

it as industry leader in full-size motorcycles? Whatever, the fact is that Harley-Davidson is

selling the American dream of freedom.

Vision & mission statements

Vision

“We preserve and renew the freedom to ride”. REFERENCE (David & David, 2017, p. 532)

Mission

“We fulfil dreams thorough the experience of motorcycling, by providing to motorcyclists

and to the general public an expanding line of motorcycles and branded products and services

in selected market segments”. (David & David, 2017, p. 532)

1- Customers

2- Market segments

3- Products and services

 4- Technology

5- Public image

External Audit

Opportunities

1- Global expansion

2- Product diversification

3- Alliances with complementary businesses

4- Expand products or services into Europe and Asia countries

5- Emerging markets and computing the clientele base is a big opportunity

6- Creating an attracting product for women and young riders

Threatens

1- Global markets threat (as other countries lowered their prices of motorcycles and

made it more affordable and convenient).

2- New competitors entering the market

3- Competitive pricing from competitors

4- Innovative products or services

5- Economic condition especially low-income customers, while they see firm’s product

is luxury rather than necessity

6- Aggressive competition

Competitive Profile Matrix

Harley-Davidson Honda
Critical Success Factors Weight Rating Score Rating Score
Market Share 0.15 3 0.45 4 0.60
Product Quality 0.18 4 0.72 3 0.54
Price Competitiveness 0.21 2 0.42 3 0.63
Customer loyalty 0.24 4 0.96 3 0.72
Financial Profit 0.22 3 0.66 3 0.66
Total 1.00 3.21 3.15

EFE Matrix
 Opportunities weight Rating weighted Score

1 Global expansion 0.08 3 0.24

2 Product diversification 0.09 2 0.18

3 Alliances with complementary businesses 0.07 3 0.21

4 Expand products or services into Europe and Asia 0.10 1 0.10

countries

5 Emerging markets and computing the clientele 0.07 3 0.21

base is a big opportunity

6 Creating an attracting product for women and 0.09 3 0.27

young riders

Threats weight Rating weighted Score

1 Global markets threat 0.09 3 0.27

2 New competitors entering the market 0.06 3 0.18

3 Competitive pricing from competitors 0.10 2 0.20

4 Economic condition especially low-income 0.08 2 0.16

customers, while they see firm’s product is luxury
rather than necessity

5 Innovative products or services 0.10 2 0.20

6 Aggressive competition 0.07 3 0.21

Total EFE 1.00 2.43

Internal Audit
Strengths
1- Strong brand image due to its quality product and services

2- The only American brand of heavyweight motorcycles

3- Great relationship with suppliers

4- Leader in custom chopper motorcycle

5- Finances their own products

 6- Long-term employee and loyal customer

Weaknesses

1- High price

2- Strong competitor

3- Straggling to expend into international markets

4- Loss of market share to new entrants’ competitors

5- Limited market reach

6- Poor marketing techniques to attract new customers

Financial Ratio Analysis

DOING OF THIS PART COULDN’T ABLE. brother Syetab can you add it plz?
IFE Matrix
Strengths
Strengths weight Rating weighted Score

1 Strong brand image due to its quality product and 0.07 3 0.21

services

2 The only American brand of heavyweight 0.08 3 0.24

motorcycles

3 Great relationship with suppliers 0.10 3 0.30

4 Leader in custom chopper motorcycle 0.09 3 0.27

5 Finances their own products 0.07 3 0.21

6 Long-term employee and loyal customer 0.09 3 0.27

Weaknesses

Weakness weight Rating weighted Score

1 High price 0.10 1 0.10

2 Strong competitor 0.07 2 0.14

3 Straggling to expend into international markets 0.08 1 0.08

4 Loss of market share to new entrants’ competitors 0.09 1 0.09

5 Limited market reach 0.09 2 0.18

6 Poor marketing techniques to attract new 0.07 1 0.07

customers

Total EFE 1.00 2.16