Capacity Analysisi of Harley-Davidson

Superfluous strength:

1. Brand reputation: A symbol of American cowboy culture(individuality, freedom and adventure);

2. Customer royalty: reinforced relationship between company and customers (a sense of community);

Half of the sales were to repeat buyers.

Key strength:

1. Market positioning: mid-age and upper-income buyers fond of heavyweight motorcycle;

2. Profit sources: parts and accessories; general merchandise and financial services;

3. Design: stick to tradition(much lower depreciation rate) with customized options;

4. Distribution: Exclusive dealers with standardized performance and guidelines thru DDP (dealer development program);

Irrelevance:

1. Internationalization: setback in EU (takeover and sale of Augsta)and Asia-Pacific market;

2. Manufacture: volume(relatively small but strong engagement with suppliers) and efficiency ("MAN" system);

Key weakness;

1. Engineering: less technology and less models;

2. Customer sustainability: core customer base shrinking; conflict between brand value and market volume;

Future scenario:

1. Stick to its mature premium market: growth will be restricted, subject to macroeconomic environment; core customers base shrinking;

2. Diversify products line (to light bikes or more economic lines): get into fierce competition with Japanese producers, brand value diluted(the Buell exit)

Superfluous strength:

1. Brand reputation: A symbol of American cowboy culture(individuality, freedom and adventure);

2. Customer royalty: reinforced relationship between company and customers (a sense of community);

Half of the sales were to repeat buyers.

Key strength:

1. Market positioning: mid-age and upper-income buyers fond of heavyweight motorcycle;

2. Profit sources: parts and accessories; general merchandise and financial services;

3. Design: stick to tradition(much lower depreciation rate) with customized options;

4. Distribution: Exclusive dealers with standardized performance and guidelines thru DDP (dealer development program);

Irrelevance:

1. Internationalization: setback in EU (takeover and sale of Augsta)and Asia-Pacific market;

2. Manufacture: volume(relatively small but strong engagement with suppliers) and efficiency ("MAN" system);

Key weakness;

1. Engineering: less technology and less models;

2. Customer sustainability: core customer base shrinking; conflict between brand value and market volume;

Future scenario:

1. Stick to its mature premium market: growth will be restricted, subject to macroeconomic environment; core customers base shrinking;

2. Diversify products line (to light bikes or more economic lines): get into fierce competition with Japanese producers, brand value diluted(the Buell exit)

Superfluous strength:

1. Brand reputation: A symbol of American cowboy culture(individuality, freedom and adventure);

2. Customer royalty: reinforced relationship between company and customers (a sense of community);

Half of the sales were to repeat buyers.

Key strength:

1. Market positioning: mid-age and upper-income buyers fond of heavyweight motorcycle;

2. Profit sources: parts and accessories; general merchandise and financial services;

3. Design: stick to tradition(much lower depreciation rate) with customized options;

4. Distribution: Exclusive dealers with standardized performance and guidelines thru DDP (dealer development program);

Irrelevance:

1. Internationalization: setback in EU (takeover and sale of Augsta)and Asia-Pacific market;

2. Manufacture: volume(relatively small but strong engagement with suppliers) and efficiency ("MAN" system);

Key weakness;

1. Engineering: less technology and less models;

2. Customer sustainability: core customer base shrinking; conflict between brand value and market volume;

Future scenario:

1. Stick to its mature premium market: growth will be restricted, subject to macroeconomic environment; core customers base shrinking;

2. Diversify products line (to light bikes or more economic lines): get into fierce competition with Japanese producers, brand value diluted(the Buell exit)

Superfluous strength:

1. Brand reputation: A symbol of American cowboy culture(individuality, freedom and adventure);

2. Customer royalty: reinforced relationship between company and customers (a sense of community);

Half of the sales were to repeat buyers.

Key strength:

1. Market positioning: mid-age and upper-income buyers fond of heavyweight motorcycle;

2. Profit sources: parts and accessories; general merchandise and financial services;

3. Design: stick to tradition(much lower depreciation rate) with customized options;

4. Distribution: Exclusive dealers with standardized performance and guidelines thru DDP (dealer development program);

Irrelevance:

1. Internationalization: