Introduction

Harley Davidson is America’s most successful manufacturing company. It has established itself as market leader for the heavyweight motorcycles and is the world’s most profitable motorcycle company. Harley Davidson has been around for over 100 year and although it sitting on a healthy position in term of profitable, heavy competition and negative trends raises the question on the length that Harley Davidson will continue to be a profitable company. This Strategic analysis will summarise the Macro-environment of the Motorcycle industry as well as summaries the effect of the five forces have on the profitability of motorcycle industry. Also an internal analysis will be conducted which will outline Harley Davidson resources and …show more content…

However, since this industry is segmented this reduce the level of competition as it allows company to specialise in a certain segment. Overall this is industry has become highly competitive and therefore reducing the overall profits companies in this industry.

The effects of greenhouse gases and decreasing oil reserve are major problem to affect the sustainability of the motorcycle industry.

Summary of Internal Analysis

An internal Analysis was conduct for Harley Davidson in appendix 3 which indentifies Harley Davidson resources and capabilities. After indentifying Harley Davidson’s resources and capabilities a VRIO/VRINE test was conducted to determine Harley Davidson Strategic capabilities which are seen in the table 3.1 in appendix 3. Strategic capabilities are capabilities that create value for customer, are better than capabilities of most competitors, and are difficult to imitate and replicate (Hubbard et. al, 2007, p112). From the VRINE test we are able to determine Harley Davidson has strategic high quality pre and after sales services these includes the Harley experience that the customer receives from purchasing a Harley motorcycles as well as it high reputational status ensure Harley’s customers that they are buying into a reliable motorcycle. Harley Davidson has a unique personalised design of motorcycle, which is where Harley Davidson has wide range of accessories so that Harley’s customer can customise their