Harley davidson
Case Analysis Harley Davidson
Question 1: What are the strengths and weaknesses of Harley-Davidson?
Strengths of Harley-Davidson
1. Strong brand image.
Over 110 years, Harley-Davidson have created strong brand image in the world. It is not only because of the high quality and performance motorcycles that provides great riding experience, but also due to the special life style that it brings to its customers. It also keeps sponsor and hold national and local rallies and activities to enhance its influence.
2. Innovation.
The development of Harley-Davidson is also the development of innovation. In order to keep the competitiveness, Harley-Davidson focuses on innovation of product (high performance engine and transmission, customized product), manufacturing (MAN program and SOC 3system), management (companywide employee involvement program and quality circles program), and Marketing (Harley Owner Group and SuperRide).
3. Customer Loyalty and acquisition.
One marketing strategy of Harley-Davidson is close to the customers. Thus, the company started the Harley Owner Group (705 chapters and 154,000 members in 1991)and SuperRide Program. The rallies and events that Harley sponsored or held created a social community for its customers and increased the customer loyalty and acquisition.
4. Pricing.
The strong brand image gives Harley opportunity to charge premium-price. Compare with its competitors, Honda, Kawasaki, Suzuki and BMW, in superheavyweight market, Harley’s price is higher, and the market share was keeping increasing to 62.3% in 1990. Harley also set lower price for entry level motorcycles in order to gain new customers, and these new motorcyclists could trade up to a more expensive model later.
5. Advanced manufacturing techniques.
The MAN program and SOC system help Harley reduce manufacturing cost, inventory level and lead-time while keep the high quality. So that it increase the company’s profitability and competitiveness.
6. Strong
Question 1: What are the strengths and weaknesses of Harley-Davidson?
Strengths of Harley-Davidson
1. Strong brand image.
Over 110 years, Harley-Davidson have created strong brand image in the world. It is not only because of the high quality and performance motorcycles that provides great riding experience, but also due to the special life style that it brings to its customers. It also keeps sponsor and hold national and local rallies and activities to enhance its influence.
2. Innovation.
The development of Harley-Davidson is also the development of innovation. In order to keep the competitiveness, Harley-Davidson focuses on innovation of product (high performance engine and transmission, customized product), manufacturing (MAN program and SOC 3system), management (companywide employee involvement program and quality circles program), and Marketing (Harley Owner Group and SuperRide).
3. Customer Loyalty and acquisition.
One marketing strategy of Harley-Davidson is close to the customers. Thus, the company started the Harley Owner Group (705 chapters and 154,000 members in 1991)and SuperRide Program. The rallies and events that Harley sponsored or held created a social community for its customers and increased the customer loyalty and acquisition.
4. Pricing.
The strong brand image gives Harley opportunity to charge premium-price. Compare with its competitors, Honda, Kawasaki, Suzuki and BMW, in superheavyweight market, Harley’s price is higher, and the market share was keeping increasing to 62.3% in 1990. Harley also set lower price for entry level motorcycles in order to gain new customers, and these new motorcyclists could trade up to a more expensive model later.
5. Advanced manufacturing techniques.
The MAN program and SOC system help Harley reduce manufacturing cost, inventory level and lead-time while keep the high quality. So that it increase the company’s profitability and competitiveness.
6. Strong