Harley Davidson Case Study Example | Topics and Well Written Essays - 2000 words

Harley Davidson - Case Study Example(Harley Davidson.com)As Harley Davidson is the market leader through a specialization strategy and unique customization ability and because of elevated costumer loyalty as companys wide sponsored events and close interactions with its customers. near market leaders argon companies focused on low cost, mass outturn capacity in which the firm takes advantage of its economies of scale. Harley Davidsons continuous improvement in design, engineering and processes allow for such a leaders through customization and results in operational excellence.Harley Davidson has a grate net work of its dealer ship and has everyplace 1300 dealers through out the world. In 2005, Harley Davidson motorcycles were sold in over 60 countries, with an international sales result of 15%.For the first six months of 2006, motorcycle sales were up 11 percent and interest continues because of the high gas prices according to the Motorcycle Industry Council. In 2004, the most recent year data was available, the effort posted $7.6 billion in sales of 725,000 on-highway bikes, up from nearly $4.7 billion in 2000 with 471,000 bikes sold. Harley-Davidson brand bikes correspond 48.9% of the approximate 517,600 total new U.S. registrations in 2005, down slightly from a 49.5% market share in 2004. In 2005, there were about 252,900 new U.S registrations of the brands heavyweight motorcycles, up from about 244,500 in 2004. Harley Davidsons closest competitors in U.S. market share in 2005 were Honda (16.6%) and Suzuki (12.4%). Because of Harley Davidsons dormant market share and strength of its brand squall, there is little direct price competition. There are High Barriers to Entry to the market. The first is the length of time it takes to mannikin up technical capabilities. The second barrier to entry is the enormous dealer networks that the entrenched players have. There are fairly few but highly competitive brands the motorcycle industry. Most of Harley D avidsons competitors are outside of the US where they hold a dominant share of the market. There is an emotional connection to owning a motorcycle that diminishes the menace of substitution In fact, the motorcycle industry has been cited as a beneficiary of the rise in embrocate and gas prices and thus has become a more viable substitute to automobiles. Harley Davidson motorcycles represent a respite lifestyle product that buyers will want to purchase regardless of the price so HDI is able to kick the bucket on increased costs to its customers. The rise in aluminum, steel and oil could continue to impact production costs over the next several quarters. However, we expect this rise to be moderate as the raw(a) material industries are fragmented and competitive.Corporate StrategyHDI always focused on the brand name recognition since its inception and desirability of its