Harley Davidson Case Analysis
Étude de cas : Harley Davidson Case Analysis. Recherche parmi 298 000+ dissertationsPar sabeel • 29 Novembre 2016 • Étude de cas • 551 Mots (3 Pages) • 778 Vues
1. What do customers love about Harley Davidson? What makes them who they are?
The core competency of HD is the brand loyalty among its customers. This brand loyalty in customers is built because of following reasons:
- The image of “. . . tense for action, long hair in the wind, beards and bandanas flapping, earrings, armpits, chain whips, swastikas and stripped-down Harleys flashing chrome as traffic on 101 moves over, nervous, to let the formation pass like a burst of dirty thunder”
- The sharing of common traits due to community and groups like HOG which created a psychological state in which the individual placed large stakes on continued affiliation with the brand.
Following attributes help the customers to display the brand image of HD:
visible indicators of commitment include tattoos, motorcycle customization, club-specific clothing, and sew-on patches and pins proclaiming various honors, accomplishments, and participation in rallies and other rider events.
2. What is the strategic challenge Harley Davidson faces?
Harley Davidson faces following strategic challenges:
- The heavy weight bike market isn’t expanding. Also, Harley Davidson’s market share is decreasing. (Refer Exhibit 2)
- The core customers of Harley Davidson are aging. Hence, they need to find a new way to attract customer of new demographics (Young adults) while maintaining their core customers.
- Harley Davidson is failing to fully utilize their Buell offering to the customers.
3. What criteria would you use to evaluate strategic options for HD?
Criteria to evaluate strategic options
Criteria | Rationale | Weighting |
Consistency with company’s core business strengths | Prioritizing a growth strategy which will be easy to build on company’s existing core business. The option should maintain the company’s brand image and do not alienate existing customers. | High |
Financial: profit, ROI, revenue | Implement strategy which is not only quick to launch, but also generates more revenue | Medium |
Time to implementation | Ties into company philosophy. Strategy which will be easy to implement. Requires less research and field work and does not require more time for product development. | Low |
Long term Potential | Needs to ensure long term profit potential for company's sustainable growth | High |
4. What options does HD have? What are the pros and cons of each option, based on your criteria?
The main objective is to increase the sales through younger demographics and create a brand loyalty among them. The tactics adopted will differ based on brand strategy used for Buell offering which are listed as follows:
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