Strategic Audit Of Harley Davidson

This print version free essay Strategic Audit Of Harley Davidson. Harley Davidson We have decided to address problems and causes within the Harley Davidson Company by using a strategic audit which will explain past, present and future trends within this organization. I. Current Situation A. Current Situation Excellent financials, low debt load, 2001 was the 16th consecutive year with record performance. Price/earnings ratio is positive. World wide retail for 4th quarter 12.9% growth over year 2000. Forbes named Harley-Davidson its "Company of the Year" for 2001. Selected by Business Week as on of the nation's "Most Admired Companies." Projected sales figures for 2003 look strong. B. Strategic Posture 1. Mission The mission of this company is to "fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments." Harley-Davidson wants to have happy customers that will continue to buy this brand for life. Their vision states that they are an "action oriented international company," and that they are committed to improving its relationships with stakeholders. They believe that through balancing their stockholder's interests and the "empowerment" of employees to concentrate on valued activities they will find success and continue to be successful. Buell mission statement "is to develop and employ innovative technology to enhance the ride and give Buell owners a motorcycle experience that no other brand can provide." 2. Objectives Buell motorcycle products emphasize innovative design, responsive handling, and overall performance. Design, manufacture, and sell premium motorcycles for the heavyweight market.

 Emphasized traditional styling, design simplicity, durability, ease of service, and evolutionary change. Straddle class boundaries. Market targets four segments, standard, which emphasized simplicity and cost; performance, which emphasized handling and acceleration; touring, which emphasized comfort and amenities for long-distance travel; and custom, which emphasized styling and individual owner customization. "It is a legacy forged by generations of people with a passion for motorcycling, a commitment to honor land build on the past, and determinations to seek out new opportunities for the future." View research and development as significant in its ability to lead the market definition of touring and custom motorcycling and to develop product for the performance segment. Manufacturing strategy was designed to increase capacity, improve product quality, reduce cost, and increase flexibility to respond to changes in the marketplace. Harley-Davidson Financial Services, Inc. has a competitive advantage which offers wholesale and retail financial services, which has little or no competition. 3. Strategies With the acquisition of Buell Harley-Davidson will enter the European sport/performance market which is four times larger than the U.S. In 1996 H-D announced it will discontinue the operations of the Transportation Vehicles segment in order to concentrate its financial and human resources on its core motorcycle business. Use web based information technology to streamline its supply-chain management. Research and development unveiled in 2001 the V-rod in order to appeal to the younger, affluent rider, and international markets. 4. Policies Emphasize innovative design, responsive handling, and overall performance. Providing to motorcyclists and to the general public an expanding line of motorcycle, branded products and services in selected market segments. Design, manufacture, and sell premium motorcycles for the heavyweight market.

 Offer traditional styling, design simplicity, durability, ease of service, and evolutionary change. Management provides a variety of services to its dealers and retail customers, including service training schools, customized dealer software packages, delivery of its motorcycles, and owners' club membership, a motorcycle rental program, and a rider training program. II. Strategic Managers A. Board of Directors 1. Presently nine members who will be reduced to eight-there are seven outsiders. 2. Well-respected Americans, elected to board from 1982 through 1997. 3. Divers backgrounds from marketing, sales, finances, telecommunications, engineering, manufacturing, distribution, and International experience. 4. By 2005 a number of the directors will not be eligible for reelection. B. Top Management 1. Was one of 13 managers who bought out Harley-Davidson from AMF in 1981? 2. Very experienced in the industry, with AMF since 1970. 3. Chairman and CEO since 1997. 4. Vastly responsible for current situation. III. External Environment (EFAS Table; see Exhibit 1) A. Societal Environment 1. Economic a. Despite the global economic downturn, H-D achieved its 16th consecutive year of record revenue and earnings. b. Licensing the H-D brand name has enhanced the corporate image with customers. c. International sales have increased since 1999.

d. H-D has begun selling parts and accessories and general merchandise through non-traditional retail outlets, known as SRL's or secondary retail locations. 2. Technological a. In 1997 an internal makeover created a WEB to cut back on communication times and administrative trivia, like invoice tracking. b. Expansion of research and development of motorcycles that would appeal to the younger crowd and the European market. c. Introduced a new liquid-cooled performance motorcycle. d. Introduced an e-commerce capability that connected buyers with dealers. e. Improvement of its operation designed to control costs and maintain quality. f. Introduction of just-in-time inventory principles, which allows for quicker reaction to engineering design changes, quality improvements, and market demands. g. Mutual relationships with its suppliers which has improved product technical integrity, application of new features and innovations, lead times for product development, and smoother/faster manufacturing ramp-up of new vehicle introductions. 3. Political Legal a. Federal, state, and local authorities had various environmental control requirements, relating to air, water, and noise pollution. b. Stricter emissions standards in 2004 and 2008. c. The European Union is considering enforcing stricter emission standards. d. Emissions standards and noise control becoming more stringent in Japan. e. Must comply with all applicable federal motor vehicle safety standards and related regulations. f. In last three years H-D has initiated 24 voluntary recalls. g. H-D is involved with government agencies regarding environmental matters, such as soil and groundwater contamination. h. HDFS is subject to state, federal, and various foreign governmental authorities and various laws, and judicial and administrative decisions. I. Steel tariffs could affect market in Europe.

4. Sociocultural a. Customers are white-collar workers and executives. b. Competitive market. c. An aging customer base. d. The possibility of a lasting recession. B. Task Environment 1. H-D is the best-selling heavyweight motorcycle in Japan. 2. New line of motorcycle to attract the younger, affluent riders. 3. Has 381 independent H-D dealerships serving 32 country markets. 4. Has an established infrastructure in Europe, based in the UK. 5. Has market distributors and subsidiaries in France, Germany, Italy, and the Netherlands. 6. Continue to support its objectives of maintaining and growing its business in Southeast Asia, where markets had continued to stabilize over recent years. 7. Latin American markets consist of 15 countries' to include Brazil and Mexico being the two biggest. 8. Canada has 75 H-D dealerships and 26 Buell dealerships. 9. Rivalry among existing firms: High. The Japan and European markets are expanding. 10. Bargaining Power of Buyers: Low. Technology and materials can be sourced worldwide. 11. Power of Other Stakeholders: Low. Quality, safety, environmental regulations increasing. 12. Bargaining Power of Supplying Distributors' Power: Low. H-D log and bar and shield means quality and prestige. 13. Threat of Substitutes: Low. Manufactures cannot compete with 100 year tradition and quality. 14. Threat of New Entrants: High. A new entrant in heavyweight market appears unlikely. EFAS Table Exhibit 1.

ABCDE 1 External Factor Analysis Summary (EFAS) 2 External Strategic Factors Weight Rating Weighted Score Comments 412345 5 Opportunities 6 Internationalizing its operations 0.1 4 0.4 There is a huge future growth especially in countries like China, UK Japan, and Europe. 7 Using Internet as a virtual online store 0.1 3 0.30 Servicing customers who prefer to shop through the web; now have the opportunity to view motorcycles and products and then are connected directly to a dealership or retailer. 8 Differentiating its customers and customizing its offerings 0.1 4 0.4 Based on new abilities to tailor offerings under Customer Relationship Management (CRM) theory such offering financing. 9 0.2 3 0.60 10 Threats 0 11 increased competition from unexpected sources 0.1 2.5 0.25 Major competitors are based outside the US and generally have more financial and marketing resources. They are more diversified and have larger worldwide sales volumes. 12 Technological changes 0.05 3 0.15 The growing number of younger riders is placing more emphasis on light weight, faster motorcycles. 13 strong regional competition 0.05 2 0.1 Within the US competition is limited. 14 Foreign governments trade hindrances on future investments 0.1 3.5 0.35 Import export tariffs on steel 15 Culture diversities in foreign countries 0.1 3.5 0.35 Different cultures have different taste 16 lower priced competition 0.1 4 0.4 Foreign made motorcycles are lighter and made with less conventional material than the H-D which allows them to sell at a lower cost. Consumers valued lower price more than American symbol. 17 Total Scores 1 3.3

18 19 20 Internal Factor Analysis Summary (EFAS) 21 Internal Strategic Factors Weight Rating Weighted Comments 22 Score 23 1 2 3 4 5 24 Strengths 25 Employee training and Loyalty 0.15 5 0.75 Employees are the foundation of company success; participation of employee is an essential component of the company success 26 Customer Satisfaction 0.1 5 0.5 Quality statement provides that the purchaser is getting the best quality motorcycle available with a 100 year tradition of excellence. Most customers return for additional purchases 27 Product Quality 0.15 5 0.75 Best quality and design heavyweight motorcycle manufactured. 28 largest sponsored bike organization 0.1 5 0.5 HOG has 750,000 members 29 Weaknesses 0 30 Lack of effective online model 0.05 3 0.15 31 Cost inefficient 0.05 1.5 0.075 32 Weak Finances 0.2 2 0.4 33 Expanded product line 0.2 2.5 0.5 34 Total Scores 1 3.625 IV. Internal Environment (IFAS Table; see Exhibit 2) A. Corporate Structure 1. Divisional structure: combine supply with design and planning process. Narrow the gap between supply and demand in order to curb selling bikes at a premium. 2. Licensing the name "Harley-Davidson" and numerous related trademarks.

3. Created Harley Owners Group and Buell Riders Adventure Group, to encourage riders to become more involved in the sport. 4. E-commerce established to unite customer to dealership. 5. Strong relationship with suppliers has improved product technical integrity, application of new features and innovations. 6. Moving production plants to more fully utilize their assets and increase capacity over time. B. Corporate Culture 1. Provide to motorcyclist and to the general public and expanding line of motorcycles, branded products and services. 2. Design, manufacture, and sell premium motorcycles for the heavyweight market. 3. Emphasized traditional styling, design simplicity, durability, ease of service, and evolutionary change. 4. Buell motorcycle products emphasize innovative design, responsive handling, and overall performance. 5. Bluestein stated "It is a legacy forged by generations of people with a passion for motorcycling, a commitment to honor and build on the past, and the determinations to seek out new opportunities for the future. 6. H-D needs to attract new and younger customers while keeping faith with its fanatical old ones. C. Corporate Resources 1. Marketing a. Bar and shield logo. b. Dealer promotions, customer events, magazine and direct-mail advertising, public relations, cooperative programs with H-D/Buell dealers, television advertising. c. Alliance with Ford Motor Company to combine resources. d. Sponsored racing activities and special promotional events, and major motorcycle consumer shows and rallies. e. Establish motorcycle organizations such as HOG and BRAG.

2. Finance a. Revenues continually rise while operating income is stable. b. Managements focus on trimming costs, also with increased sales of parts and accessories, resulted in an improved operating margin. c. H-D stock remains strong, while general market has weakened. d. In 2001 despite the global economic downturn, H-D achieved its 16th consecutive year of record revenue and earnings of $3.36 billion. 3. Research and Development a. Increased production to meet supply and demand. b. Strong utilization of e-commerce capabilities. c. Incorporated manufacturing techniques focused on the continuous improvement of its operations designed to control costs and maintain quality. d. Employee involvement, just-in-time inventory principles, partnering agreements with the local unions, high performance work organizations, and statistical process control, were designed to improve product quality, productivity, and asset utilization. 4. Operations a. Continual expansion and up-grading of existing facilities. b. Locate product development staff in close proximity with production facilities. c. Employee involvement with an emphasis on a highly flexible and participative workforce. d. Assembly operations overseas to reduce duties and taxes. e. Emphasize full utilization of assets and increase capacity over time. 5. Human Resources a. Exceptional relations with unions and employees and in 2001 were named by Fortune as one of the top 100 companies to work for. 6. Information Systems a. Strong utilization of e-commerce capabilities.

b. Strong employee involvement c. Locate product development staff in close proximity with production facilities. IFAS Table Exhibit 2. ABCDE 1 Internal Factor Analysis Summary (EFAS) 2 Internal Strategic Factors Weight Rating Weighted Score Comments 312345 4 Strengths 5 6 7 8 9 10 11 Weaknesses 12 13 14 15 16 17 18

19 Total Scores V. Analysis of Strategic Factors (See SFAS Matrix in Exhibit 3) ABCDEFGH 1 Strategic Factor Analysis Summary (SFAS) 2123456 3 Duration 4 Strategic Factors Weight Rating Weighted Score short Intermediate Long Comments 5 Customer Satisfaction (S) 0.15 5 0.75 X Employees are the foundation of company success; participation of employee is an essential component of the company success 6 Product line Limitation (W) 0.2 2.5 0.5 X The V-Rod is the newest product 7 competition from foreign companies (T) 0.1 4 0.4 X lower priced, high qualities bikes 8 9 10 11 12 Weaknesses 13 14 15 16 17 18 19 20 Total Scores

A. Situational Analysis INTERNAL FACTORS EXTERNAL FORCES Strengths Opportunities What does your practice do best? Financial strength Reputation Brand Customer loyalty Total customer experience Diversified product range High product differentiation High level product customization First to market Community culture built around product Employee affinity to product and workplace Personal connection to customers Relationships with suppliers and distributors Operational structure Sales structure Collaborative organizational culture Knowledge sharing Focus on continuous learning and innovation Strong penetration in North American markets

 Established infrastructure and networks on buy and sell sides (supplier and dealer) Established operations for manufacturing, R&D High inventory turnover Limited market penetration outside US Fall in industry share in Europe Product differentiation less understood or valued in non US markets Customer relationship model may be US centric, Europeans or Japanese may not respond to this model, HD relies on this model for marketing and product development, may need to apply different models to different markets HD relies strongly on proximity to customer to build knowledge and may not connect as strongly with customers in non US markets HOG has largest sponsored bike organization with 750,000 members Where are the opportunities in your area? Has a faithful following. Has an established quality product. Has patents and trade marks established and protected. Has established organizations that support tradition such as HOG and BRAG. Has an easily recognizable logo. Expansion of company in foreign market segments. While Harley-Davidson has market share in Canada, Europe, Japan, and Australia, further investments can be made in other growing economies. Purchasing other competitors or suppliers. By acquiring other competitors as well as suppliers, substantial decreases in expenses could be realized and could generate savings directly to consumers. Additionally, increased sales and market share may occur. Trade agreements with foreign markets. Due to the fact that countries such as Japan and others in Europe have their own motorcycle manufacturers, tariffs are placed on HarleyDavidson's products. By obtaining trade agreements and easier entry within these markets, sales can considerably increase. High demand in European Market High demand in US Market

 Interest rates for financing have become lower High gas prices are making more people buy bikes Alliances with automobile manufactures are possible Women Weaknesses Threats What part of your practice needs improvement? Aging factories that are not in compliance with EPA rules and regulations could increase expenditures and raise overhead. Decreased return on investments. Harley-Davidson's return on equity decreased from 29.32% in fiscal year 2003 to 28.81% in fiscal year 2004. Furthermore, return on assets decreased from 17.32% in fiscal year 2003 to 17.10% in 2004. Increased total debt equity. Harley-Davidson's debt ratio remained the same in fiscal year 2002 and 2003 at 34%. However, their debt ratio increased dramatically in fiscal year 2004 to 40%. This constitutes increasing financial risk and may affect their borrowing and/or bond ratings. Low annual dividend yield. For investors who enjoy high dividend yields, they may purchase Polaris stock prior to purchasing Harley-Davidson stock. With a dividend yield of 1.30%, it will be difficult to reach to Polaris's dividend yield of 2.50% in the near future. What is happening in your area that could threaten your practice? There are a number of Asian competitors trying to enter the heavyweight market with strong financial and marketing resources. EPA along with federal legislation and local ordinances could affect market regarding air pollution and sound pollution of heavyweight market. Steel tariffs and international trade rules could affect market value of needed, material. Steadily losing market share to Japanese rivals such as Honda Motor Co. Extend the HD experience in North American and Asia Pacific markets by penetrating further into lifestyle products Build market share in Europe Increase penetration of existing HD customers

 Increase sales of general merchandise to non motorcycle riders in North American and Asia Pacific markets Foreign exchange and interest rate fluctuations Price increases in metals market Price increases in fuel Regulatory changes Changes in economic or political conditions External Factor External Factor Analysis Summary (EFAS) External Strategic Factors Weight Rating Weighted Score Comments 12345 Opportunities Internationalizing its operations 0.1 4 0.4 There is a huge future growth especially in countries like China, UK Japan, and Europe. Using Internet as a virtual online store 0.1 3 0.3 Servicing customers who prefer to shop through the web; now have the opportunity to view motorcycles and products and then are connected directly to a dealership or retailer. Differentiating its customers and customizing its offerings 0.1 4 0.4 Based on new abilities to tailor offerings under Customer Relationship Management (CRM) theory such offering financing. 0.2 3 0.6 Threats 0 increased competition from unexpected sources 0.1 2.5 0.25 Major competitors are based outside the US and generally have more financial and marketing resources. They are more diversified and have larger worldwide sales volumes.

Technological changes 0.05 3 0.15 The growing number of younger riders is placing more emphasis on light weight, faster motorcycles. strong regional competition 0.05 2 0.1 Within the US competition is limited. Foreign governments trade hindrances on future investments 0.1 3.5 0.35 Import export tariffs on steel Culture diversities in foreign countries 0.1 3.5 0.35 Different cultures have different taste lower priced competition 0.1 4 0.4 Foreign made motorcycles are lighter and made with less conventional material than the H-D which allows them to sell at a lower cost. Consumers valued lower price more than American symbol. Total Scores 1 3.3 Internal Factor Analysis Summary: Internal Factor Analysis Summary (EFAS) Internal Strategic Factors Weight Rating Weighted Score Comments 12345 Strengths Employee training and Loyalty 0.15 5 0.75 8000 employees, Salaried and unionized employees are fully participated in many key business decision, Empowered workforce to take initiative to identify problem and solve problem, Employees are considered as foundation of company success and are the engine to drive company to success, Diversity background, Employee involvement is "strong culture" of Harley Davidson, Participation of employee is an essential component of the company success Customer intimacy 0.1 5 0.5 Quality statement provides that the purchaser is getting the best quality motorcycle available with a 100 year tradition of excellence. Product Quality 0.15 5 0.75 Best quality and design heavyweight motorcycle manufactured. largest sponsored bike organization 0.1 5 0.5 HOG has 750,000 members Weaknesses 0 Lack of effective online model 0.05 3 0.15

Cost inefficient 0.05 1.5 0.075 Weak Finances 0.2 2 0.4 Expanded product line 0.2 2.5 0.5 Total Scores 1 3.625 B. Review of Current Mission and Objectives 1. Current mission appears to be focused and channeling resources in the right direction. 2. The H-D/Buell objectives are excellent and laid out for the future, and the interest groups that they wish to influence. VI. Strategic Alternatives and Recommended Strategy A. Strategic Alternatives 1. Growth through concentric diversification: H-D acquired the Buell manufacture in Europe to help open up new markets and attract a younger generation of riders. 2. Pause Strategy: Combining financial, and supply and demand to meet future trends. a. (Pros) H-D appears to be making all the right moves in order to open up new market possibilities with younger riders, expanding its operation to meet global strategy, and combining financial needs with purchasing power. b. (Cons) H-D fears that it's ageing faithful riders in the heavyweight division will fade out without attracting younger generations. 3. Retrenchment: On January 22, 1996, the company announced its strategic decision to discontinue the operations of the Transportation Vehicles segment in order to concentrate its financial and human resources on its core motorcycle business. a. (Pros) Sound move by consolidating it resources and concentrating on what it does best, which is building motorcycles. b. (Cons) Seems that H-D is placing all its eggs in one basket. B. Recommended Strategy 1. The strategy that H-D has already placed into affect by purchasing Buell for a younger and European market seems sound, also by shipping parts instead of completed units into countries and allowing their labor to assemble them in order to reduce taxes and tariffs is sound business strategy of keeping market value down.

2. H-D quality must be maintained, the promotion of the H-D bar and shield logo must be utmost important in its image, and the continual merger into the European market with the Buell will help reduce the aging faithful market. 3. The Asian market with its known competition and stabilizing market should be a main objective. 4. H-D is the main leader in the heavyweight segment and should continue to support and promote their need for excellence, styling, and performance in this area. VII. Implementation A. To continue to increase their reputation and market shares in Europe and Asia H-D needs to continue its line of Buell motorcycles geared towards the younger generation in order to compete with the lighter and faster competitive market of Asia and Europe. B. When existing board member terms expire H-D needs to continue to attract business like minds in a large diversified field of global, communication, marketing, leadership in Asia, European, and African markets, technological change, advertising, finances, and legal restrictions. C. Research and development has already made major changes in order to increase efficiency and streamline the increase in supply and demand. VIII. Evaluation and Control Strategic evaluation involves three major activities, which are: (1) examining the underlying bases of a firm's strategy; (2) comparing expected results with actual performance; and (3) taking corrective actions to ensure that performance conforms to plans. Examining the underlying bases of a firm's strategy includes continuous monitoring of external opportunities and threats and internal strengths and weaknesses. Measuring organizational performance entails comparing expected results to actual results, looking into deviations from plans, assessing individual performance, and watching the developments toward meeting the stated objectives. The application of corrective measures requires the implementation of changes to reposition a firm competitively for the future A. Although H-D is making headway in leaps and bounds towards increasing their market value in countries like Asia, Japan, Germany, Italy, and the UK. It appears that they need to increase their presence in South America and other Asian countries such as China, Korea, etc. Also the strategy that the company has pursued for the last generation will, in all likelihood, become less and less useful in the coming years as the generation of buyers that has supported it since the 1980s begins to move beyond the point at which it will purchase motorcycles. As this happens the company must find a way to attract younger buyers as well as women. To do this it will probably have to adopt some of the same features that make its competitors attractive today to just those buyers: Smaller engines (including two-stroke engines), lighter, sleeker design and environmental safeguards in both the building of the machines and in their use.

B. Among the key resources of the firm are the established manufacturing facilities and the good financial performance. The intangible resources are the goodwill of the company and its wide market awareness. Davidson is the synonymous of ultimate motorcycle and this is the capability of the company to provide this feeling of being "special" Though it is not clear from the papers, the providing the life style experience is the core competence of the company It appears that the Buell mission statement towards excellence and performance is very compatible with the H-D core beliefs. C. H-D's factories should be reevaluated due to their aging condition and proximity to supply sources. A future shift of factories may enhance their production capabilities, while reducing overhead in shipping of needed supplies. At the same time reduce possible tariffs or fines in regards to compliance with EPA restrictions. Given the above SWOT analysis, it could be observed that Harley-Davidson have in the past been focusing on the internal improvements of the company at the expense of losing market share from 77.5% to 23.3% (Bruce 2004). For this reason there has been a great need for refocusing on the marketing plans adopted by the company to increase future sales. It is recommended that for the next three years the company should focus on sales growth strategies. For the first year, Harley-Davidson should focus on developing consumer base in developing countries around the world such as Malaysia, India, Hong Kong/China and Brazil as these are destinations that both have good infrastructure for bike production as well as newly acquired taste for luxury goods. The customer base could be generated by appealing to their aesthetic taste and emotional ties with owning goods that reflect the liberation attitude and the free spirit. This is the essence of the Harley-Davidson mission statement which should not be omitted from the future marketing plans (Official Website 2004). In the second year, the company should focus on the acquisition of customers from secondary circle, namely through the Harley club, the employees participation, the suppliers and the general public. A referral system has been established through Harley-Davidson's reputation. This should be capitalized to generate more sales by taking a survey, yet once again of the preference of the American consumer as well as the foreign consumers. This way the company could gauge the new customer profile in order to cater to their needs (Official Website 2004). Third year of the company should capitalize on the innovation by introducing less power bikes that could cater to the preference of the lower class of customers who cannot afford the high price of HarleyDavidson. Reduction in cost of production could be achieved through outsourcing to other countries like China and Malaysia. This would also enable the company to achieve higher sales growth target. D. The Company's ability to meet the targets and expectations noted depends upon, among other factors, the Company's ability to (i) continue to realize production efficiencies at its production facilities and effectively manage operating costs including materials, labor and overhead, (ii) successfully manage production capacity and production changes, (iii) avoid unexpected supply chain issues, (iv) provide products, services and experiences that are successful in the marketplace, (v) develop and implement sales and marketing plans that retain existing customers and attract new customers in an increasingly competitive marketplace, (vi) sell all of its motorcycles and related products and services to its independent dealers and distributors, (vii) continue to develop the capacity of its distributor and dealer network, (viii) avoid unexpected changes and prepare for known requirements in legislative and regulatory environments for its products and operations, (ix) successfully adjust to fluctuations in foreign currency exchange

rates, interest rates and commodity prices, (x) adjust to worldwide economic and political conditions, including changes in fuel prices and interest rates, (xi) successfully manage the credit quality and recovery rates of HDFS's loan portfolio, (xii) retain and attract talented employees and (xiii) detect any defects in our motorcycles to minimize delays in new model launches, recall campaigns, increased warranty costs or litigation. In addition, the Company could experience delays in the operation of manufacturing facilities as a result of work stoppages, natural causes, terrorism or other factors. Conclusion The definition of HD market and business stayed pretty much the same: the strong accent on life experience provided to the motorcyclists, the quality product and accessories. There is much to be done in order to crystallize the vision and make it consistent with the declared wish to satisfy the interests of stakeholders. The stress on the unique lifestyle and philosophy could be a better uniting point here. The generic competitive advantage has been shifted from "differentiation focus" to "differentiation" through the last 9 years. The company operates in two segments, Motorcycles and Related Products (Motorcycles), and Financial Services. In comparison to 1996 now the "intangible" aspect is more prominent in the vision but still not in the market definition. HD has performed wonderfully over the past hundred years, and has not forgotten their mission or where they came from but this mission statement addresses only two components: the customers and products or services. In today's market, this mission statement needs to be re-done so that it may address more then just two of the components of a mission statement. Harley-Davidson is the largest motorcycle retailer in the United States, but could be overthrown by competitors. Industries such as domestic automobile manufacturers have experienced financial difficulty within the past few months and had to cut jobs and downsized as a result. However, foreign made vehicles continue to sell strong. As other motorcycle manufacturers may expand in this country, Harley-Davidson could have a potential threat. References NetMBA Business Knowledge Center, SWOT Analysis, Internet Center for Management and Business Administration, Inc. Copyright 2002-2005. Retrieved January 4, 2006. http://www.netmba.com/strategy/swot/ Wheelen, T. Hunger, J. (2006). Strategic Management and Business Policy; Tenth Edition. Upper Saddle River, New Jersey: Prentice-Hall, Inc. Official Harley-Davidson website. Retrieved January 14, 2005. http://www.harleydavidson.com/CO/NEW/en/PressRelease_Date.asp?locale=en_US&bmLocale =en_US&HDCWPSession=DhhJQNCvW0gtyyr0TlP4yyXctbzmXZyJvWYvwx7tFclwl1vgyK3 M!976980882!262704913&id_in=781&dspmm=4&dspyy=2005