Harley Davidson - SWOT analysis

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Harley Problems

-Omission of changes
-They needed to do something to correct the weaknesses
-When a new product entered the market they didn’t do anything to protect their products.
-The image of motorcyclists was associated to the black leather jackets gangs and violence
-Their biggest problem was Honda appearance

Alternatives

-Continuos marketing research
-Be less self conceited
-Improve the services
-Be productive/ dynamic on the market

The Strategy Chosen

- Harley Davidson became more a luxury producer with high prices and quality and addressing to a small range of customers.

Honda SWOT Analysis

Strengths:
Wide range of products
Advertising was given the key role in the invasion : Honda wanted to promote the idea that riding a motorcycle is fun.
A good distribution network
High market share:

Honda 45.6%
Yamaha 18.9%
Suzuki 10.7%
Kawasaki 14.4%
Harley Davidson 5.7%

Low prices- because of the cheaper labour cost
Price/ Quality ratio
Penetration pricing- low prices in the beginning in order to enter the market
The firm got to be known because of the motor races – by 1961, Honda won World Championships in the 125-cc and 150-cc engine classes

Opportunities
Economic boom
New categories of customers
The image of motorcyclist is changed
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