Harley Davidson has been around for over year and although it sitting on a healthy position in term of profitable, heavy competition and negative trends raises the question on the length that Harley Davidson will continue to be a profitable company.
Low Like any automobiles, Harley-Davidson's industry requires large manufacturing facilities and equipments to enter. New Entrants would have to have a large amount of capital is start in this industry. Already established firms such as Harley-Davidson, Honda, Suzuki, Kawasaki, Yamaha, and Ducati have the advantage of brand recognition from all over the world.
These companies also established customer loyalty, especially Harley-Davidson. This means that any new entrants trying to enter the industry have to spend tons of money in advertising and promotion to receive the same amount of brand recognition and customer loyalty that these powerhouse companies in this industry already have gained.
With the lack of brand recognition and customer loyalty, retailers would be afraid to carry such product because of the risk it carries if it doesn't give you profit. Low Motorcycles are seen as leisure products and don't take much out of one's income.
Some substitute items for a motorcycle is a motor scooter and dirt bikes. Customers will switch to the substitutes if price increases and purchasing a cheaper substitute will be the better choice. However, give the fact that Harley-Davidson has a strong image of a lifestyle, the substitute products are no match to Harley-Davidson products.
This will sway customers from buying substitutes because it is just not the same. Bargaining Power of Buyer: High Satisfying customer's needs are really important when it comes to Harley-Davidson.
Harley-Davidson thrives in their customer loyalty and makes most of their profits off their current Harley-Davidson riders by offering them better products than the ones they own currently.
Despite having customer loyalty, pricing will always be somewhat of a factor. Harley-Davidson has differentiated their products from Japanese product lines but price will always be a factor when purchasing a motorcycle.
Bargaining Power of Supplier:The following is a shortened sample SOP (with technical details removed.) Expert comments at the end of the paragraphs point out important features. Harley Davidson remains as a dominant force in the heavy weight motorcycle industry; upholding 50% share in the heavy weight motorcycles.
This year they celebrate their th Anniversary proudly as the only major motorcycle manufacturer to completely focus on motorcycles. Bowes and Church's Food Values of Portions Commonly Used, Text and CD-ROM Package, Jean A. Pennington, Judith S.
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Porter's Five Forces Analysis done on Harley Davidson. Topics: Motorcycle Harley Davidson Analysis Essay Competitive Landscape Harley Davidson, as a producer of motorcycles, competes as part of the “Recreational Vehicles” industry.
Winnebago, Polaris, Thor, Arctic Cat, and Marine Products are just some of the companies that also. Harley Davidson Case Study Essay.
Harley Davidson Motor Company was founded by William Harley and Arthur, Walter and William Davidson. It is the producer and manufacturer of iconic and unique motorbikes, which are desired by millions of people around the globe.