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STRATEGIC ANALYSIS: HARLEY DAVIDSON

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Essay / Research Paper Abstract

This 5-page paper provides a strategic plan for Harley-Davidson. Bibliography lists 4 sources.

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5 pages (~225 words per page)

File: AS43_MTharldavi.rtf

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market, but the problem is that it appeals to a very narrow core demographic namely aging baby-boomer males. Because of this, the long-term objective for this company needs to get more riders into the dealership as well as the service departments. To this end, Harley-Davidson needs to market its products to younger riders and women of all ages. To keep the current riders, Harley-Davidson will continue with its generic strategy of differentiation. To meet this long-term objective, the company needs to focus on putting together a message that will appeal to these two markets, while developing products that they would be interested in buying. To survive, Harley-Davidson needs to get out of the mindset that its an iconic brand that really doesnt need any kind of promotion. Company Background Harley-Davidson, best known for its "hogs," is the worlds leading manufacturer of heavyweight motorcycles, parts and accessories (Gorham, 2010). Harley-Davidson Financial Services provides wholesale financing to dealers, and retail financing and insurance brokerage to customers (Gorham, 2010). Harley Davidson tends to appeal to baby boomers, but as the boomers age, domestic revenue is likely to decrease, though international expansion is likely on tap (Gorham, 2010). SWOT Analysis (Source: Datamonitor, 2010) Strengths Strong market position * Great brand image * High inventory turnover ratio Weaknesses * Weakened financial performance * Unfunded employee post-retirement benefits * Narrow demographic Opportunities * Launch of new models * Growing global motorcycle market Threats * Regulatory compliance * Labor issues * Continued global economic problems Long-Term Objectives Grand Strategy The main challenge facing Harley-Davidson in the near to long term is becoming more profitable. To do this, ...

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