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Transcript of Harley Davidson
Brendon Sullivan P+L E S T E Questions or Comments? Safety Regulations
Fuel Use Regulations
Pollution Restrictions Hurt by recession
Employment slowly recovering
Interest rates low Masculine, biker image
Aging customer base Some claim less impact than cars, others claim just as bad Focused differentiation strategy
Do not franchise
Reverse horizontal integration Aging customer base
High price, bad economy
Maturity/declining stage of life cycle
Saturated U.S. market Diversify product portfolio by introducing Buell motorcycles into China Benefits of Recommendation Increase efficiency of engines Product diversification
Increase presence in China
Opportunity to use the Buell
Chinese market very competitive
Entry levels are high
Buell dormant for 3 years
Domestic market still a challenge
Does not leverage "Harley-Davidson"
Bring back / ramp up Buell production
Determine supply chain strategy
Advertising strategy for Buell brand
Create marketable products
SWOT STRENGTHS •Strong brand image
•R&D Activities WEAKNESSES OPPORTUNITIES THREATS •Product recalls/issues
•Dependence on domestic market •Global expansion
•New product launches
•Restructuring plans •New emission standards
•Procurement of raw materials
•Competitive landscape Asian markets have growth in motorcycle sales
Less cyclical market
Increase China's % of sales
Capture a larger market share Why Lose the Harley Name? Virtually No demand for heavyweight bikes
Noise ordinances make Harley's Illegal
Other for US Motorcycle market: Yamaha, Suzuki, Other
Other for US Heavyweight: BMW, Ducati, KTM, Other U.S. Motorcycle Industry Heavyweight Industry