External Analysis of the Motorcycle Industry

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i) The opportunities that Harley-Davidson has for moving forward in the motor cycle manufacturing and sales markets include Global expansion. Its heavy bikes have not been property marketed in the emerging economies. Even in countries where Harley-Davidson is available the dealers have relatively weak networks, the marketing communication is weak, and after sales service is time consuming. If Harley-Davidson markets its products globally, its sales and profits will growth. Another opportunity for Harley-Davidson is that it should develop and launch several lighter and less costly bikes for other segments of the market. New product launches in other segments of the motorbike market will make the company more competitive, and help increase its market share. Capital investment in modern plants that make excellent bikes at low cost represents a good opportunity for Harley-Davidson. It should raise more capital and invest in modern bike making plants so that the production of low cost high performance bikes comparable to the best in the world can be made. Another opportunity for Harley-Davidson is to invest in research and development and innovate. Innovation can improve bike design, bike performance, and reduce fuel consumption. Each of these elements represents a substantial new market for Harley-Davidson. Another set of opportunities is that Harley-Davidson can acquire other bike making companies that have the technical knowhow and ability to make different types of bikes. Such acquisitions will not only bring technical expertise to Harley-Davidson but will also increase its production, revenues, and profits. Acquisitions will also provide access to Harley-Davidson to new markets and distribution networks. These will also give HD access to service networks of the acquired company. One excellent opportunity for Harley-Davidson is the increase in fuel prices. It should ...