Harley Davidson Financial and Strategic Analysis Review
Harley-Davidson, Inc. (Harley-Davidson) is one of the quantitative manufacturers of heavyweight motorcycles in the globe. Harley-Davidson is the perpetrator gang of the bunch of companies including Harley-Davidson Motor Gang (HDMC) and Harley-Davidson Financial Services (HDFS). The gang proposes past than 30 models of touring and usage Harleys through a globeextensive network of past than 1,600dealers,spreadacrosssixcontinents. Harley-Davidson furnishs tradeable and dispose-of financing and security programs largely to its dealers and usageers.
Harley-Davidson, Inc., Portion-out Data
Price (USD) as on 01-Aug-201241.67
Book appraise per portion-out (USD)10.50
Shares Outstanding (in darling)234.92
Source : GlobalData
Harley-Davidson, Inc., Achievement Chart (2007 - 2011)
The gang reported produces of (U.S. Dollars) USD 5,311.71 darling during the fiscal year ended December 2011, an augmentation of 9.31% aggravate 2010. The permitted mendment of the gang was USD 829.97 darling during the fiscal year 2011, an augmentation of 74.59% aggravate 2010. The net mendment of the gang was USD 599.11 darling during the fiscal year 2011, an augmentation of 308.83% aggravate 2010.
Source : GlobalData
Harley-Davidson, Inc. - SWOT Analysis
SWOT Analysis - Overview
Harley-Davidson, Inc. (Harley-Davidson) artifices, manufactures, and sells heavyweight motorcycles. The gang trades its fruits in North America, Europe, Asia/Pacific and Latin America. The gang’s powerful stigma statue, coupled after a while its extensive rank of fruits, helps it to be a front-runner in the breath. However, expectation on the private trade and fruit issues are a few areas of sympathy to the gang. Nonetheless, comment in global trades, in-particular Asian trades, and propel of new models could secure a powerful forthcoming for the gang. New oration standards for two wheelers and the prevalent emulation could negatively application the gang’s augmentation.
Harley-Davidson, Inc. - Strengths
Strength - Powerful Stigma Image
Harley-Davidson owns one of the powerfulest stigmas in the globe, which helps it fascinate and keep a obedient usageer grovelling. The gang symmetrical a powerful stigma statue after a while its motorcycles achieving iconic foundation and life ranked inchoate the globe’s most costly stigmas. Harley-Davidson has been uninterruptedly ranked inchoate the top 100 global stigmas in the globe. The gang holds 55.7% portion-out in the US heavyweight trade; and is ranked #1 or #2 in the heavyweight motorcycle trade portion-out in nine countries resisting Europe.
Harley-Davidson’s motorcycles are disclosed for their oral styling, artifice plainness, durability and kind. The gang achieved breath remembrance for its excellent kind, best artifice, vigorous achievement and undaunted usageer expectation, obedientty and expectation of its fruits and labors. The Harley-Davidson stigma has weightyly contributed to the victory of the gang by structure powerful trade remembrance and a obedient usageer grovelling.
Strength - Generic Fruit and Labor Portfolio
Harley-Davidson proposes a generic dress of fruits and labors through its two matter members, namely, the Motorcycles & Akin Products member and the Financial Services member. The gang proposes a difference of fruits in the motorcycle member to contribute to the uncertain needs of its usageer grovelling. Harley-Davidson artifices, manufactures and sells heavyweight touring, usage and achievement motorcycles, so a verse of motorcycle compressiveness, accessories, public commodities and akin labors.
Harley-Davidson is courteous disclosed for its uncommon motorcycles. Its conducive, Harley-Davidson Motor Gang (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are noted by their compel, engine, deprivation, and other characteristics. The gang shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle parts, 39.2% Usage motorcycle parts, and 21.3% Sportster motorcycle parts.
Through Harley-Davidson Financial Services (HDFS), the gang proposes a package of tradeable and dispose-of financial labors for its fruits, providing it a competitive behalf in the motorcycles matter in the US and Canada regions. HDFS financed 51% and 30.4% of the new Harley-Davidson motorcycles dispose-ofed by defiant dealers in the US and Canada respectively in 2011. HDFS furnishs tradeable financial labors to Harley-Davidson motorcycle dealers, including foot cunning and unconcealed representation financing of motorcycles and motorcycle compressiveness and accessories. These biased labors furnish a competitive behalf to the gang in capturing a excellenter trade portion-out and enhancing its deep verse.
Strength - Focused Scrutiny and Work Activities
Harley-Davidson has a powerful scrutiny and work part that facilitates alteration and fascinates breath care. Its Fruit Work Center (PDC) undertakes the work of new and reform kind fruits. The gang elapsed $145.4m, $136.2m, $143.1m and $163.5m in the fiscal years ended December 2011, 2010, 2009 and 2008 respectively on scrutiny and work activities.
Harley-Davidson’s natural centre on R&D helped the gang in propeling innovative fruits such as Softail motorcycles after a while 1584 cc engine after a while new features such as new laborer controls, a larger odometer, and an anti-lock braking method liberty. Natural scrutiny and work breath empowers the gang to frequent a quantitative standing in usage and touring motorcycle trade and eliminate fruits for the achievement member. Focused R&D activities empower the gang to propose innovative fruits and mend its operational achievement.
Harley-Davidson, Inc. - Weaknesses
Weakness - Fruit Recalls/Issues
Product foreclosures/issues not singly seeks the gang’s exoteric produce, but could besides seek its long-term achievement by reducing usageer expectation. In February 2012, Harley-Davidson propeled a restore labor hostilities to fix mediocre thickets in encircling 1,228 parts of 12 models, including the Road King and the Electra Glide Ultra Classic.
In October 2011, the gang indoctrinated a globe-extensive foreclosure seeking aggravate 308,000 parts of its Touring, CVO Touring and Trike motorbikes. The gang made this foreclosure ascribable to a potentially dangerous glitch after a while their braking methods, where in the problem after a while a switch on the bikes could source the thicket lights to plug launched, or may flush source the rear thickets to trip. Such foreclosures would hinder Harley-Davidson’s stigma statue and bear a weighty application on its fruit sales.