QSPM J . V E U R O P E J . V A S I A STRENGTH W E I G H T A S T A S A S T A S Net income of 2003 was $760mn, its morethan 30% as compared to the previous year2002 0 . 0 7 5 3 0 . 2 2 5 3 0 .

2 2 5 The standard and performance segments of Harley Davidson make up 70% of theEuropean heavy weight motorcycle market 0 . 0 4 5 3 0 . 1 3 5 2 0 . 0 9 Harley-Davidson operates in two segments:Harley-Davidson motorcycles & relatedproducts and HDFS (Harley-DavidsonFinancial Services) 0 . 0 1 2 5 4 0 . 0 5 3 0 . 0 3 7 5 Harley-Davidson is the only major Americanheavyweight motorcycle manufacturer 0 . 0 5 4 0 . 2 4 0 . 2 Strong brand name 0 . 0 7 5 4 0 . 3 2 0 . 1 5 The HOG (Harley Owners Group), which havea 7,50,000 members world wide is theindustrys largest company sponsoredmotorcycle enthusiast organization 0 . 0 2 5 2 0 . 0 5 3 0 . 0 7 5 Buell Riders Adventure Group (BRAG) wasalso formed recent 0 . 0 1 2 5 2 0 . 0 2 5 4 0 . 0 5 Customization of the bikes, this is Harley-Davidsons major revenue maker 0 . 0 1 2 5 3 0 . 0 3 7 5 3 0 . 0 3 7 5 Harley-Davidson have a good marketingdivision and its divided as dealer promotions,customer events, magazine and direct-mailadvertising, and public relations 0 . 0 1 2 5 2 0 . 0 2 5 2 0 . 0 2 5 WEAKNESS 0 High price 0 . 0 7 5 2 0 . 1 5 2 0 . 1 5

Harley-Davidson has problems in gainingmore market share in some Europeancountries (Thats one of the main markets forHeavyweight motorcycles outside U.S). 0 . 0 3 3 0 . 0 9 3 0 . 0 9 They didnt yet start its sales in India, one of the biggest markets 0 . 0 5 3 0 . 1 5 3 0 . 1 5 Required production is not met, analyzingthe future of Heavyweight motorcycle market 0 . 0 2 5 4 0 . 1 4 0 . 1 OPPORTUNITIES 0 The European demand for Harley Davidson isthe highest in the international market andrepresents the single largest motorcyclemarket in the world 0 . 0 7 5 4 0 . 3 2 0 . 1 5 The international heavy weight market is g r o w i n g a n d i s n o w l a r g e r t h a n t h e U . S . heavyweight market 0 . 0 7 5 4 0 . 3 3 0 . 2 2 5 Women and younger riders are increasingbecoming interested in bikes 0 . 0 5 3 0 . 1 5 4 0 . 2 Market share increasing in Europe and Asiafor the last two years 0 . 0 2 5 3 0 . 0 7 5 4 0 . 1 Increasing demand in US markets for bikes 0 . 1 2 0 . 2 3 0 . 3 Customers value quality parts 0 . 0 1 2 5 1 0 . 0 1 2 5 2 0 . 0 2 5 THREAT Harleys ongoing capacity restraints caused as h o r t a g e s u p p l y a n d a l o s s i n d o m e s t i c market share in recent years 0 . 0 7 5 4 0 . 3 3 0 . 2 2 5 Harleys average buying age is 42 years old and increasing

0 . 0 2 5 3 0 . 0 7 5 2 0 . 0 5 T h e E u r o p e a n U n i o n s m o t o r c y c l e s n o i s e standards are more stringent than those of Environmental Protection Agencies in the U.Sand increased environmental stand 0 . 0 1 2 5 3 0 . 0 3 7 5 2 0 . 0 2 5 Some competitors of Harley Davidson havelarger financial and marketing resources andthey are more diversified 0 . 0 1 2 5 2 0 . 0 2 5 3 0 . 0 3 7 5 Environmental protection laws 0 . 0 1 2 5 4 0 . 0 5 2 0 . 0 2 5 Buell division needs to continue to produce aq u a l i t y m o t o r c y c l e u n d e r H a r l e y s b r a n d name 0 . 0 2 5 1 0 . 0 2 5 2 0 . 0 5 1 3 . 0 8 7 5 2 . 7 9 2 5 STRATEGY RECOMMENDATION & IMPLEMENTATION: MARKET PENETRATION Get some more market share from the existing market, like U.S,U.K, and Japan etc through more marketing techniques likeadvertising. Harley-Davidson has a good brand name so its easyfor them to eat up the competitor market share if they canprovide some more customer benefit. Competition is high in this segment mostly in U.S so marketpenetration can be a good choice for the company. Expand the HOG (Harley Owners Group) to Asian countries, if thecompany can provide the customer satisfaction that they areproviding to the U.S customers to the Asian customers they canincrease the sales. PRODUCT DEVELOPMENT Younger generation and female are now coming to this segmentso expand the motor cycle segments to younger generation andfemales. In Europe they can increase or expand the Buells market shareby introducing new motorcycles. MARKET DEVELOPMENT Harley-Davidson can bring in their vehicle to Asian countries likeIndia and China, because these countries have a high populationand the market potential is also high.

The cost to bring in the old vehicles (old product) to India is somuch difficult because there are so much environmental laws arethere which wont allow that type of vehicles to come to India,and its difficult that taxes and levis are high in India so startingnew plant in India can solve this problem. Negotiations with theGovernment can solve these problems.

DIVERSIFICATION Bring in new vehicles to new markets like India and China is agood choice, but its too costly. Bringing new types of recreational vehicles is a best choice. RECOMMENDATION Expand European and Asian market. Increase the sales of Buell sport bike and Harley-Davidson toyounger customers and females. Horizontal diversification: acquires or develops new products thatcould appeal to its current customer groups even though thosenew products may be technologically unrelated to the existingproduct lines . Concentric diversification: Bring in new recreational vehicles. EVALUATION REVIEW UNDERLYING BASES OF STRATEGY Once again prepare all the internal and external analysis (eg: EFE& IFE) Compare the already prepared analysis with the one which will beprepared after the new strategy implementation. MEASURING ORGANIZATION PREFERENCES Analyze all financial ratios (current and the future). If any advantage, then implement the new strategy, otherwisecontinue with the present one. Reference: Strategic Management Concepts and Cases; Fred R. David, 10th & 12th Edition. www.harley-davidson.com

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