Comprehensive S.W.O.T Analysis of Harley Davidson

Harley-Davidson, Inc. is an American motorbike producer based in Milwaukee, Wisconsin. The organization has survived possession and subsidiary arrangements, durations of terrible monetary fitness and product quality, and excessive international competition to come to be one of the world’s biggest motorbike producers and an iconic logo widely recognized for its unswerving following.

In this blog, we will be discussing the strengths, weaknesses, opportunities, and threats of Harley Davidson. Let’s start with a quick introduction of the company before we dive into the SWOT Analysis of Harley Davidson

About Harley Davidson

 

The company is referred to as a fashion of customization that gave an upward push to the chopper motorbike fashion. The organization historically advertised heavyweight, air-cooled cruiser bikes with engine displacements extra than seven-hundred cc, however, it has broadened its services to encompass extra cutting-edge VRSC (2002) and middle-weight Street (2015) platforms.

Now that we understand Harley Davidson as a company, let’s examine the company’s SWOT analysis.  

SWOT Analysis of Harley Davidson

A SWOT Analysis is a technique for evaluating four important areas of your business. SWOT means reviewing the strengths, weaknesses, opportunities, and threats. 

SWOT Analysis can help you make the most of what you’ve got to the benefit of your company. You can also lower your chances of failing by recognizing what you’re lacking and removing any threats that would otherwise catch you off guard. Even better, you may begin to develop a plan that sets you apart from your competition, allowing you to compete successfully in your industry through SWOT Analysis. 

Let’s see the strengths of Harley Davidson in the coming section. 

1. Strengths of Harley Davidson 

Strengths are areas that the company excels at or accomplishes in a way that sets it apart from its competitors. So here, let’s see the major strengths of Harley Davidson.

• The company enjoys a high level of brand equity and loyalty. The organization has carved out a niche in the industry with its strong image of quality and “freedom,” which is backed up by Harley Davidson Merchandising.
• Due to high global sales, the company enjoys a healthy financial position. The brand hosts “Harley Owners Group” or HOGS rallies regularly, bringing together Harley Davidson owners from all across the country to socialize and enjoy a new way of life.
• The business has evolved into a cult brand, occupying a niche segment of high-performance cruiser bikes. Harley Davidson has become an extremely popular iconic “cult” brand because of social media, biker clubs, and marketing.
• The company has a good product line. Harley Davidson is attempting to alleviate the ageing per cent problem of its current client base by diversifying its product line, which includes the recently released Street 500CC & 750 CC, to make it more appealing to the younger diaspora.
• Through the use of social media, the company has been able to reach younger generations, seeking to address the age gap among its customers.

• The brand is successfully attracting younger populations via social media. Harley Davidson’s average customers are over 50 years old and ride because they are “cool”. Younger individuals like motorcycles as a mode of mobility and would likely prefer a less expensive and lighter motorcycle. 

    Thus, these are integral strengths of Harley Davidson.

2. Weaknesses of Harley Davidson

Weaknesses, like strengths, are fundamental characteristics of the organization and must be concentrated upon to overcome the concerns. The company considers what it could do better and what tactics it should avoid. 

Some of the weaknesses of Harley Davidson are mentioned below.

• Harley Davidson’s market share growth is constrained due to fierce competition from other motorcycle manufacturers. The United States accounts for more than 65 per cent of total income. In terms of expansion, the US market has its limitations. As a result, generating the majority of Harley’s earnings in the United States has become riskier.
• Outside of the United States, the company has only one production factory in India and one assembly plant in Brazil, which raises the price in export markets. It is also reliant on these three plants to meet worldwide demand.
•  The corporation is indicted on charges of contaminating the environment. Since land and smoke pollution is everywhere, Vehicles usually undergo these allegations due to the environmental crisis.  
• Outsourcing and third-party material supply can be a source of supply chain cancer. Lack of communication, shifting pricing, and poor delivery are all variables beyond the company’s control that can hurt its operations.                                                                                               

This concludes the section on the weaknesses of Harley Davidson. 

3. Opportunities for Harley Davidson 

Opportunities are possibilities for potential positive growth if capitalized upon timely. Below mentioned are some opportunities for Harley Davidson.

• For Harley Davidson, emerging markets and international expansion might be huge opportunities. It is becoming more popular in developing Asian and European countries, and there are a few competitors in this market. As a result, capturing these markets aggressively is a very appealing potential for Harley.
• The corporation sells motorcycles through independent middleman dealerships, which rely mainly on its sales rather than Harley Davidson’s. Instead of relying on independent merchants with external elements beyond the firm’s control, the corporation may open its dealerships and sell directly to the public, which would be a more cost-effective and self-sufficient method of retail.

 

4. Threats to Harley Davidson

Threats include anything that can hurt the firm from the outside, such as supply chain issues, market fluctuations, or a recruitment shortage. Anticipating dangers and taking action against the issues before becoming critical will help the company to maintain its business. 

Let’s have a look at the threats of Harley Davidson. 

• With more and more firms in the heavyweight market going global, such as Royal Enfield, Indian Motorcycles, Vector Motorcycles, and Triumph Motorcycles, these low-cost rivals may have an impact on Harley’s entire business.
• Tariffs and other changes in international trade policy could harm the company’s bottom line. Problems arise as a result of foreign expansion. External issues like local or international politics, which are beyond the company’s control, might influence the price of international motorcycle trade via tariffs, product exportation fees, and foreign material importation fees.
• Being market myopic might harm the Harley-Davidson brand. Because the United States accounts for 65 per cent of its sales, this overdependence might cause internal strife.

Thus, these are some of the threats faced by Harley Davidson. With this, the SWOT analysis of Harley Davidson comes to an end. 

Conclusion

SWOT Analysis is a basic yet effective framework for examining the strengths, weaknesses, opportunities, and threats that the company faces. Here, we have seen the SWOT analysis of Harley Davidson. The analysis of the company suggests that Harley Davidson needs to restructure. The worldwide motorcycle market offers growth potential, but the company’s product mix, market reach and supply chain is limited. The company must also face the growing environmental movement, which negatively influences the competitiveness of gasoline-powered motorcycles.

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