6 pages. This interesting case study on the Harley Davidson Motor Company includes a comprehensive analysis, key issues raised in light of the analysis, a SWOT analysis, potential strategies for the company and suggestions concerning the market segmentation and targeting.
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the company and suggestions concerning the market segmentation and targeting. SWOT ANALYSIS Currently, Harley-Davidson is the worlds largest provider of motorcycles and sells, according to financial analysts, "at a
generous thirty-six times trailing earnings, ten times book value per share, and its market capitalization of $13 billion is more than four times its annual revenue" (Kass PG, 2001).
One analyst recently wrote that Harley-Davidson was "the most compelling investment opportunity in our leisure universe" (Kass PG, 2001). In fiscal year 2000 and in the first quarter of 2001,
Harley has lost market share consistently in the heavy bike area. Harley also lost more than three percentage points in market share last year, and according to the company,
this was partly due to its inability to deliver bikes. It is interesting to note that Harleys have been on allocation for the last fifteen years and never before
has the company has lost market share to this degree (Kass PG, 2001). According to other analysts however, there is not a problem at all. They say that the
#1 motorcycle manufacturer will "be able to weather a downturn in the market" (Kass PG, 2001). It has some protection, they say, against downswings and most of the companys
signs of weakness go by unnoticed, according to Michael Millman of Salomon Smith Barney. He maintains that the firm holds a backlog of orders, where customers usually wait at
least six months for the delivery of a bike. Also, it is pointed out that weaker prices will more significantly impact the dealers, and not the company or its
customers. Chip Paquelet, the portfolio manager of the Strong Strategic Growth Fund, believes its "customer base and market reach are excellent" (Kass PG, 2001).