Coulson_A_M2A2 - Harley Davidson External and Internal...

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Ashleigh Coulson Harley Davidson External and Internal Analysis
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Harley Davidson The Analysis of H-D's External Environment The international heavyweight market is growing and is currently larger than the US market. In Europe, the demand for Harley Davidson is high and is currently the single largest motorcycle market in the world. Considering that Asia and China are the only two countries not affected by the recession, Harley made a god choice by having some of their manufacturing done in these countries to lower prices and grant higher production. Porter’s Five Forces Model is unique but accurate. The first force is the degree of rivalry. This force helps determine the extent to the value is created for the industry, this will dissolve any head on competition. This force most likely happens with the industries that are a threat to substitute products and the power or buyers and suppliers in the market. The threat of entry is the influence of potential or existing competitor’s profitability in the industry. The threat of entry is typically based on the market entry barriers and is adjusted based on cost per capital, and the influx of a specific industry where there are profits. Some common entry barriers are to ability to purchase in bulk, investing, access to competitors, cost advantage, new legislation and laws, and differentiation. 1
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Harley Davidson Another force is the threat of substitutes. This involves substitute products that ultimately pose to an industry’s profits depending on the type of service and products presented to the consumer. Some examples include: Product substitution such as email or fax Generic substitution Substituting items consumers can live without such as cigarettes. Buying power is an influence created by an industry. The highest level of buying power comes from the size of consumers and other related factors where buyers are informed of the different competition. Buying power is typically few
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