Harley Davidson SWOT & PESTLE Analysis
COMPANY PROFILE -Harley Davidson
Business Sector :Automobile
Operating Geography :United States, North America, Global
About Harley Davidson :
Harley Davidson is an American motorcycle manufacturer which was founded in 1903 by William Sylvester Harley, Arthur Davidson, Walter C. Davidson, Sr. and William A. Davidson. The headquarters of the company are located in Milwaukee, Wisconsin. Today, the company is the 5th largest motorcycle manufacturer globally as well as a well-loved brand with a huge following. the brand has emerged as being much more than simply a motorcycle maker. It now has its own licenses, merchandise, apparel, décor, accessories, motorcycle models, video games and even Harley Davidson clubs. Theunique feature about the Harley Davidson bikes is that they introduced a new style of heavyweight motorbikes called the “chopper” motorcycle style with cruiser motors. The primary manufacturing centers of the company are located at York in Pennsylvania; Milwaukee in Wisconsin; Manaus in Brazil and Bawal in India with another plant recently constructed in Thailand.The company is operating in mainly two reportable segments – two-wheeler segment & the financial services segments under the names of Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS) respectively. Both the divisions combined employ close to 5300 employees as of early 2019.
The Harley Davidson mission statement reads, “We fulfill dreams through the experiences 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”. The vision statement reads, “Harley-Davidson, Inc. is an action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, government, and society). Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities.”
Harley Davidson Revenue :
USD 5.7 billion - FY ended December 2018 (year-on-year growth of 1%)
USD 5.6 billion - FY ended December 2017
Competitive Analysis of Harley Davidson
| 1. Huge global footprint – business in close to 100 countries worldwide 2. Strong marketing policies maintaining a high brand image, trust and consumer loyalty 3. Integrated services to the bike consumers including parts & accessories and financing options. | 1. Greater reliance on third parties for company operating and administrative activities 2. Less market share outside domestic market in international countries 3. Decrease in net income for the company by 8% |
| 1. Wide gamut of trade agreements by the home government with exporting countries coupled with global and domestic economic growth | 1. Rising competition from local players in global markets |
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Detailed SWOT Analysis of Harley Davidson
Strength
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Weakness
1. Greater reliance on third parties for company operating and administrative activities: Harley Davidson depends on third party suppliers for pricing and delivery of services. This sometimes leads to unfavorable pricing, delay in delivery of activities as well as poor quality of services. The company also depends on third party suppliers for raw materials which sometimes lead to poor quality and untimely delivery of raw materials. Harley Davidson has only single supplier for certain parts that leads to greater supply risks for the parts.
2. Less market share outside domestic market in international stage: Harley Davidson is unable to address the needs of the consumers in the international market effectively. In Europe, Harley Davidson holds a market share of 10.8% in 2016 as the touring and cruiser needs are less in Europe than US. In the developing markets, there is little demand of 600+ cc bikes as a percentage of total sales which reduces the chances for Harley Davidson sales.
3. Decrease in net income for the company by 8%: Harley Division reported net income of $692.2 in 2016 down from $752.2.in 2015. Operating income has decreased by $102.1 million compared to last year. Independent retail sales through dealers have decreased globally by 1.6% compared to last year due to lesser shipments, unfavorable exchange rates and manufacturing costs. Operating income for Harley Davison financial services also decreased by 1.7% or $4.7 million due to higher provision of credit losses.
Opportunity
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Threat
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Harley Davidson Analysis Report
1. Harley Davidson Annual Report 2018 -http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_HOG_2018.pdf
2. Harley Davidson Annual Report 2017 -http://www.annualreports.com/HostedData/AnnualReportArchive/h/NYSE_HOG_2017.pdf
3. Harley Davidson company website - https://www.harley-davidson.com/us/en/about-us/company.html
4. Harley Davidson company profile - https://in.reuters.com/finance/stocks/company-profile/HOG.N
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Harley Davidson SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2021). Harley Davidson SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/harley-davidson/ [Accessed 02 Mar, 2021].
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