SWOT Analysis
The brand chosen for SWOT Analysis is Harley Davidson which have been described below:
Strengths
- Harley Davidson is the only largest manufacturer of Motorcycles in the United States
- Strong relationship with its suppliers and end consumers
- Worldwide decline in retail sales by 21.3% and net income by 84.1% in the 2014 second quarter (Harley-Davidson, 2014).
- The price for Harley Davidson bikes is expensive and hence does not cater to the mass market
- The increase of interest in the bikes amongst young bike riders in Asian economy, which is lately occupied by the economic boom
- Strategic alliances can be formed with many automobile manufactures to enter a challenging market
- Higher oil consumption motorcycles are developed by Harley Davidson which is a negative aspect considering the higher prices of oil
- The product portfolio of Harley Davidson’s competitors is diversified
Weaknesses
Opportunities
Threats
Implications
The three implications of the three factors have been discussed below:
Largest Manufacturer of Motorcycles in the United States
Harley Davidson must utilize the benefit of being the largest manufacturer of motorcycles by expanding its product line and to target a broader market. Increasing the Stock Keeping Units (SKU’s) would generate higher revenues because of the large target market and new consumer acquisition.
Worldwide Decline in Retail Sales
Harley Davidson must identify the core reasons for their drastic decline in their retail sales and shall try to decrease expenses and cost associated with the product. The company shall try to shift their assembly unit to a country where the labor rate is cheaper.
Increase of Interest in Young Bikers
An increase of interest in motorcycles for young bikers and the increased population in the developing economies favors Harley Davidson to enter the particular market with low priced motorcycles.
Interpretations
Interpretations of SWOT Analysis for Harley Davidson indicates that the company is in crisis due to the financial losses that occurred in the second quarter of 2014. Therefore, the company needs to change its existing business model by targeting a new set of customers in a relatively new market. Harley Davidson also has to make changes in its technology by developing motorbike engines which are fuel efficient. In order to effectively market its product in developing countries, Harley Davidson must form strategic alliances with the other automobile companies that have knowledge in the particular market. Although Harley Davidson is the largest manufacture of motorbikes in the United States, but its competitors are gaining a hold on the diverse market through introducing diversified products catering to a broader consumer market.
Market Segmentation
The brand that has been chosen for market segmentation is Dell which has been described below:
Describe a Segment
Corporate customers, which include large corporation, educational and governmental institutions contribute highly in total sales for Dell as being its target segment. The particular customer segment for Dell generates a larger market share and more revenues to achieve in a highly competitive market. Dell has approved of providing custom product specification to their customers.
Recommendations for Product, Message and Media
Product
The company’s strategy has always been focused upon selling the product that has matured in the market and then recreate the particular technology. However, the company does not focus upon developing new innovative products through investing in research and development centers. However, investing in the research and development department and in increased competency of developing innovative products would allow the company to shift its focus from its existing core competency which is to provide mass customized products. Development of innovative products would also require different distribution channels to adopt so that the product would reach its target market effectively. Even though the particular strategy also carries some advantages which include the first mover advantage and a higher share of revenues in the market.
Message
The message that shall be portrayed by Dell after focusing on its research and development is to bring the first and the best product in the market far ahead than any other company to reach its goals. The preferred target market for Dell shall be expanded and shall cater to millennials and the existing target market for corporate customers. The message for quality products shall remain the same as Dell focuses its positioning as the reliable machine amongst its competitors that runs longer time period. The message shall be prominent and simple based on providing quality with new and improved machines which entices the new customers to purchase the product and as well as retaining the old customers.
Media
The corporate segment, which is mostly catered by Dell can be marketed through good relationships with its corporate customers and through providing the best bids for its products. The corporate customers use the tender notice to inform its suppliers to provide them with high quality products with low prices................
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