SWOT Analysis of Harley Davidson. Harley Davidson is a motorcycle manufacturing American Company. William A. Davidson, Walter Davidson, Arthur Davidson, and William S. Harley laid the foundation of the motorcycle company in 1903. The headquarter of the company is in Milwaukee, Wisconsin, USA.
Some of the main products and services of Harley Davidson are as follows;
- Video games
- Ornaments and Home Décor
- Branded Apparel
Key statistical facts and figures about Harley Davidson are as follows;
- The annual revenue of the motorcycle brand in 2023 was 6.049 billion US dollars
- Out of which, the net income of the company was 0.823 billion US dollars
- Approximately 5800 employees are working for the company to manage its worldwide operations
Key subsidiaries of Harley Davidson are as follows;
- Harley Davidson Asian
- India Harley Davidson
- Harley Davidson Brazil
- EMEA Harley Davidson
Some of the top competitors of Harley-Davidson are as follows;
- Indian Motorcycle
- Dennis Kirk
- J&P Cycles
Today, we’ll discuss the swot analysis of Harley Davidson. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the motorcycle manufacturing company. Here’s the swot analysis of Harley Davidson as follows;
Strengths of Harley Davidson
Some of the main strengths in the swot analysis of Harley Davidson are as follows;
Distribution & Dealership
HD has a very powerful dealership and distribution network and they allow the company to deal with various types of market and supply chain challenges. The company’s dealers have established teams that sell HD’s motorcycles to the customers so that they can have a better experience.
Recognized Brand Culture
The loyal customers of Harley Davidson established a club by the name of HOG Boys in the 1980s. Their club has got more than one million members; they receive discounts, group rides, merchandise, and other benefits. In fact, the company offers a tour of its motorcycle manufacturing factories. The brand has established a museum to reflect the following;
- Corporate archives
One of the top strengths of Harley-Davidson is the company’s strong financial condition. It allows the company to launch new projects and find new sources of revenue. However, the company offers plans to people who can’t afford to buy its motorbike with a single payment.
Harley Davidson has established a strong market reputation as a motorcycle brand. But the company has successfully diversified its product portfolio by launching various types of products and goods like accessories, parts, branded apparel, and others. It allows the company to earn a significant portion of revenue and profit from the sale of complementary goods.
Harley Davidson is successfully employing digital marketing and social media platforms to its advantage. In fact, the company has established a strong database of followers on social media channels. It allows the company to precisely target the specific segments of the target customer market and comprehend their behaviors.
Harley Davidson has been operating its business in the motorcycle manufacturing industry for the past more than 120 years. The company has survived various phases in history like WWI, the great depression, WWII, the cold war, and the digital age. It helps the company to earn the trust and confidence of customers that the company would stay with them in the upcoming years.
Weaknesses of Harley Davidson
Some of the main weaknesses in the swot analysis of Harley Davidson are as follows;
The focus of Harley Davidson is only on the production and manufacturing of motorcycles. It is a weakness of the company that the brand is targeting a specific segment of the customer market. The company should expand its product and include diverse items in it.
Supply Chain Issues
Harley Davidson heavily depends on a single supplying source of production and manufacturing parts and accessories. It is not a good strategic move, the company should rely on more than one source of suppliers. However, reliance on one supplier could badly jeopardize and disrupt its production process.
The target customer market of Harley Davidson belongs to the baby boomers, and they believed in the company’s culture of looking cool and group riding. This demographic market is aging and going down gradually. However, the interests of millennials are different they learn bike riding, but they prefer fuel-efficient and economical motorbikes.
Dependence on One Market
Harley Davidson is heavily relying on the US market as its major source of sale, revenue, and profitability. The company should expand its market and launch its bike in other markets. It is no doubt HD earns a significant amount of revenue, but it is coming from one source and it could jeopardize the company’s position.
Opportunities for Harley Davidson
Some of the main available opportunities in the swot analysis of Harley Davidson are as follows;
Harley Davidson should consider launching its own dealer shops and selling its motorbike directly to the end consumers. It allows the company to kick out the middlemen and increase its revenue and profitability by directly approaching customers.
The focus of Harley Davidson is always on the younger demographic of the customer market. It is because young people have got the energy and enthusiasm to travel and explore the world with bike riding. However, the company should also target women for bike riding and launch special bikes for them; it would open the door to a lot of market expansion opportunities.
Threats to Harley Davidson
Some of the main potential threats in the swot analysis of Harley Davidson are as follows;
The interest and preferences of the consumer market are shifting from fuel-consuming motorbikes to electric motorcycles. Harley Davidson could lose its market share to the electric motorbike manufacturing companies if it doesn’t move fast.
There are various brands operating their business in the motorcycle manufacturing industry like Honda, Yamaha, BMW, and others. It has become highly difficult for HD to maintain its market position and market share in its presence.
Conclusion: Harley Davidson SWOT Analysis
After an in-depth study of the swot analysis of Harley Davidson; we have realized that HD is the world’s leading motorcycle manufacturing company. If you are learning about the business of Harley Davidson, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.