External Analysis of the Motorcycle Industry
You are going to cover quite a bit of ground in this case
assignment because you are tasked with considering what might
be included in a PEST and Porter’s 5 forces analysis of Harley
Davidson’s external environment.
Before you start to write (though you might want to take some
notes), spend some time considering what might go into
such a PEST analysis and also consider what a strategic manager
at HD might include in a Porters 5 forces analysis in considering
this organization's external environment.
Some of the more interesting things happening in HD’s world
right now from a competition perspective includes the
introduction/re-introduction of two competing motorcycle
companies in past years that can also make the claim of being
“American Made”. These include “Victory” and “Indian”
motorcycles. In addition, most of the foreign competition has
entered into the heavy-weight motorcycle market. There are
also some concerns nowadays regarding the world economy, and
the heafty price-tag that typically accompanies an HD
motorcycle. Though HD tends to rely heavily on a socially based
mystique regarding their product line. They have also invested
significantly from a technological perspective in relation to
logistics and production management efforts. There are also a
lot of potential ‘substitute’ products that one might consider as
an alternative to riding a motorcycle (depending on the reason
for purchasing the motorcycle be it gas economy, or something
exhilarating to do on a warm, sunny weekend).
Based on this information and your background readings, discuss
whether you think PEST analysis and Porter’s 5 Forces analysis
would be useful tools for HD executives to help them make wise
strategic choices. Give examples to support your arguments and
above all, demonstrate that you have a strong grasp of how
these analytical tools are used and applied in the strategic
management process. This analysis should be 4 to 5 pages in
length.
Pay special attention to the following case study related to HD's
efforts to expand their operations and sales overseas. This effort
obviously ties into the discussion on the external environment:
McBee, R. D. (2011). Harley-Davidson's Future (Abroad).
International Journal Of Motorcycle Studies, 7(2), 1-8(access via
Trident’s library through EBSCO database)
Background Information:
Required Readings:
Here are some SWOT analyses conducted by third party
organizations on HD that may be helpful:
Harley-Davidson, Inc. SWOT Analysis. (2012). Harley-Davidson,
Inc. SWOT Analysis, 1-9. (access via Trident’s library through
EBSCO database)
DATAMONITOR: Harley-Davidson, Inc. (2011). Harley-Davidson,
Inc. SWOT Analysis, 1-9. (access via Trident’s library through
EBSCO database)
Here is a document that contains a lot of information on a
strategic alliance with Lehman Trikes in 2008. This document
provides a thorough strategic analysis of both HD and Lehman,
including evaluation of the external enviornment. This will
actually be used as a case study in Module 3 but provides some
useful information for this module as well.
Looney, D. C., & Ryerson, A. (2011). Lehman Trikes: A story
within a story. Journal Of The International Academy For Case
Studies, 17(7), 45-58. (Available via the Library by way of the
EBSCO database).
Here is a comprehensive competitive analysis of the motorcycle
industry and a web-link with comparative sales performance
documentation between industry leaders:
Motorcycles Industry Profile: United States. (2010). Motorcycles
Industry Profile: United States, 1. (access via Trident’s library
through EBSCO database)
Web Bike World, (2012). Motorcycle Sales Statistics, News and
Information. Retrieved from:
http://www.webbikeworld.com/motorcyclenews/statistics/motorcycle-sales-statistics.htm
Here are a few documents related to PEST and 5 Forces analysis:
Themanager.org(n.d.). Porters 5 forces. Retrieved from:
http://www.themanager.org/Models/p5f.htm
QuickMBA. (n.d.). Porter’s 5 Forces. Retrieved from:
http://www.quickmba.com/strategy/porter.shtml
NETBMZ. (n.d.). PEST Analysis. Retrieved from:
http://www.netmba.com/strategy/pest/
Anonymous, (n.d.). Pest Analysis. Retrieved
from: https://depts.washington.edu/oei/resources/toolsTemplat
es/PEST_analysis.pdf
Here is the document specific to the case study:
McBee, R. D. (2011). Harley-Davidson's Future (Abroad).
International Journal Of Motorcycle Studies, 7(2), 1-8(access via
Trident’s library through EBSCO database)