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Unformatted text preview: 1 Comparative Comparative Comparative Comparative Advantages Advantages Advantages Advantages Harley-Davidson has been being recognized as image of raw power and icon of America. It was founded in 1903, and the brand has a long history. The HD was firstly very successful. In the mid-1950s, HD earned more than 60% of the market share. Yet, years later, Japanese motor manufacturers penetrated the U.S. market. With advanced management and successful marketing strategy, Quickly, the U.S. market was dominated by Japanese motor makers. After a series of transformations and repositioning, in the 1980s, HD started recovering from previous failure. By the 2004, HDI total volume reaches 306,757 units, 33% of globe market share. According to the article, the current comparative advantages of HD can be listed as followings: 1, Great prestige, over 100 years history of excellence in motorcycle manufacturing. With the unique appearance, HD is regarded as the American icon. This gives HD a great reputation. Moreover, multi-decades revolution has gave HD motors unique appearance. HD is famous for its hardcore American style looking, this gives HD comparative advantage of image differentiation because when consumers see the similar looking model on the market, they will likely perceive them as HD. Since this advantage in unique and cannot be copied by competitors of HD, therefore, it can be regarded as a life-time warranted advantage . The CEO of HD suggested that some HD fans have HD logo tattoo on their bodies. The phenomena suggested that the Harley motor is no longer merely motorcycle, but also has become a lifestyle. 2, 2, 2, 2, Harley Harley Harley Harley Owners Owners Owners Owners Group, Group, Group, Group, aka HOG, was established in 1983. Sponsored by community marketing club, a branch of HD. Nowadays, HOG has more than 1,000,000 members operating more than 1400 chapters across the globe. Due to these widely spread outlets, customers can be much better/ convenient served, the buyers can easily find the nearest hood and join in. This gives HD both installation and channel advantages. HOG gives members privileges of: product discount, insurance discount and magazine to let consumers keep on track of their new products. The fan club is not only for improving consumers post purchase satisfactory. but also to promote a Harley lifestyle. Hence, HD could potentially generate more revenue. Moreover, according to statistics, HOG members spendsgenerate more revenue....
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- Spring '08
- Comparative Advantage