Module 3 - Case (External Analysis - SWOT)

Module 3 - Case (External Analysis - SWOT)

Introduction

Paper Theme

The paper discusses the External analysis (SWOT) of the motorcycle industry. The main aim of the paper is to identify the External analysis of the motorcycle industry which helps in designing a successful strategy for HD motorcycle. The external analysis would help the management of the company to have a look on the strategic perspective.

Thesis Statement

“Analyzing the strategic approach and external analysis of Motorcycle industry and how it defines its future path in the current environment”.

Is Strategic Alliance between HD and Lehman Trikes would result in achieving the future goals for both the companies?

Analyzing the Case & Motorcycle Industry

Currently the business environment is crippling down due to recession in the economy. People are still fond of buying stylish bikes even though they are costly but they all have their own class. HD and Lehman Trikes are the major players in the motorcycle industry and according to the CEO both of them are competitors as well as, associates. Both of the companies want to hit their strategic goals of being the best in the market. In order to achieve their strategic goals both the companies have a number of options for example, Strategic Alliance (Looney & Ryerson, 2011).

Lehman Trikes started its business in 1984 within the John Lehman's parking space in Alberta, Canada. At that time the main aim of the Lehman was to fabricate a three-wheel bike for his wife. With the assistance of companions, John molded a Chevrolet differential and a metal form onto a 1981 Honda Cb-900 bike front end and motor. On the other hand, Harley-Davidson (HD) entered in the business during 1932 with the container finished for business and police utilization (Looney & Ryerson, 2011).

In 2005 approximately 4.4% motorbikes are from USA and are sold in the same region. Most of them belong to the range of 160 H-D a two wheeler Taiwan made bike which becomes a reason to lift the market demand. On the other hand, with respect to the management of Harley-Davidson merchants in Taiwan, this number is truly noteworthy. It has the same volume or bicycles sold as Ducati where 10 dealerships have as of recently existed (Looney & Ryerson, 2011).

Strategic Options from the Case

From the case synopsis one of the major options for both the companies is Strategic Alliance.

Analysis of the Option

The alliance between HD and Lehman Trikes represents a huge opportunity for HD on the basis of a number of factors. Since the performance of HD has been declining to an alarming level, the weaknesses can be compensated with this type of alliance. A strategic alliance such as this one would be able to significantly enhance the competitiveness for HD (Harley, 2012).

The operational processes in the case of HD have not been able to accomplish the organizational goals and thus this alliance offers HD new hope to cover for the inadequacies. With a long term ...