SWOT Analysis on Harley-Davidson Inc.

SWOT Analysis on Harley-Davidson Inc.

Introduction

Harley-Davidson Inc is a leader in the manufacturing of heavyweight motorbikes, accessories, merchandise, and components. Its primary market is in the United States of America and as of 2012, it has 6,400 employees. The company generates revenues of $5.5 billion sales and $0.623 billion in net profits in 2012. In order to understand the structure of Harley-Davidson Inc and its performance, a SWOT analysis needs to be conducted to identify the internal strengths and weaknesses, and the external opportunities and threats (Harley-Davidson Inc. 2013).

Discussion

Strengths

Strong Positioning in the Market and Unique Brand Image

Harley Davidson is a major leader in motorcycle manufacturing in the USA. It has the highest market share of motorcycles in the heavyweight division (651+cc). According to statistics gathered from the company, the share of the motorcycle market by Harley has been 54.9% in 2010, 55.7% in 2011, and 57.2% in 2012. Supporting their hold on market share, Harley has a unique and strong image of the brand. The company's brand is promoted under the products including H-D, Dyna, Harley-Davidson, Softail, Harley, MotorClothes, Tour Pak, V-Rod, Sportster, and H.O.G. In collaboration with their strong presence in the market and promotion of the brand, Harley Davidson has been able to increase shareholder's value and gain higher revenues in business (Market Line 2013).

Large Network Covering Distribution

Motorcycles manufactured by Harley go through an independent channel of distributors and retail dealers. In the American region, motorcycles are sold with its related products on a channel consisting of 695 dealerships owned independently by Harley-Davidson. In the Canadian region, 73 dealerships are available to the company. When looking at the global perspective, the EMEA area has 371 service dealerships that produce sales of the vehicles and its related aspects. In the Asia-Pacific area, there 281 dealerships while in the Latin American region; there are 47 dealerships for service. For growth in international dealers, the company had implemented a plan to allocate an estimated 100-150 dealers access points by 2014. Through this aspect, Harley focuses on being cost-efficient by utilizing an established network for global locations to satisfy demands (Market Line 2013).

Strong and Established Dominance in Financial Performance

During 2012, Harley Davison had a robust performance. The sales of the company had growth of 5.1% during that year to reflect the $5.58 billion revenue value. This impacted in higher profits including an operating profit of $1 billion which is a growth 20.5% as compared to the previous year. The net profit was found to be $0.62 billion in 2012 which was also a growth of 4.1% as compared to 2011. Correspondingly the margins for operating and net improved drastically in 2012. The impact of these financials suggests a better stability in the company and provides potential for future growth (Wandell 2013).

Weaknesses

Significant Impact of Product Recalls Harm Reputation

A potential weakness found in Harley Davidson is the recalling of vehicles with design and production flaws. In the early aspect of 2011, ...