Harley Davidson Financial and Strategic Analysis Review

Harley-Davidson, Inc. (Harley-Davidson) is wiz of the leading manufacturers of heavyweight cycles in the world. Harley-Davidson is the p atomic number 18nt phoner of the group of companies including Harley-Davidson Motor friendship (HDMC) and Harley-Davidson Financial Services (HDFS). The go with offers to a greater extent than 30 models of touring and custom Harleys through a worldwide network of more than 1,600dealers,spreadacrosssixcontinents. Harley-Davidson provides in large quantities and retail financing and insurance programs principally to its dealers and customers.SWOT AnalysisShare informationHarley-Davidson, Inc., Share Data Price (USD) as on 01-Aug-201241.67 EPS (USD)2.33 Book value per deal (USD)10.50 Shares big(p) (in million)234.92 Source GlobalDataPerformance Chart Harley-Davidson, Inc., Performance Chart (2007 2011) Financial Performance The troupe reported revenues of (U.S. Dollars) USD 5,311.71 million during the financial family ended December 201 1, an augment of 9.31% over 2010. The operating profit of the attach to was USD 829.97 million during the pecuniary year 2011, an increase of 74.59% over 2010. The net profit of the association was USD 599.11 million during the fiscal year 2011, an increase of 308.83% over 2010.Source GlobalDataHarley-Davidson, Inc. SWOT AnalysisSWOT Analysis Overview Harley-Davidson, Inc. (Harley-Davidson) send offs, manufactures, and sells heavyweight motorcycles. The attach to grocerys its products in North America, Europe, Asia/Pacific and Latin America. The connections absolute brand image, coupled with its wide range of products, helps it to be a ducky in the industry. However, dependence on the domestic market and product issues are a few areas of concern to the company. Nonetheless, expansion in global markets, oddly Asian markets, and launch of new models could ensure a strong in store(predicate) for the company. New emission standards for two wheelers andthe prevailing compe tition could negatively w butt against the companys growth.Harley-Davidson, Inc. Strengths Strength Strong Brand Image Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic condition and being ranked among the worlds most valuable brands. Harley-Davidson has been interminably ranked among the top 100 global brands in the world. The company holds 55.7% share in the US heavyweight market and is ranked 1 or 2 in the heavyweight motorcycle market share in nine countries across Europe.Harley-Davidsons motorcycles are known for their traditional styling, design simplicity, durability and quality. The company achieved industry deferred payment for its high quality, best design, buirdly performance and unflinching customer confidence, loyalty and trust of its products and go. The Harley-Davidson brand has importantly contributed to the success of the company by building strong market recognition and a loyal customer base.Strength Broad increase and Service Portfolio Harley-Davidson offers a broad array of products and services through its two business segments, namely, the Motorcycles & think Products segment and the Financial Services segment. The company offers a variety of products in the motorcycle segment to cater to the various needs of its customer base. Harley-Davidson designs, manufactures and sells heavyweight touring, custom and performance motorcycles, besides a line of motorcycle parts, accessories, universal merchandise and related services.Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.Through Harley-Davidson Financial Services (HDFS), the company offers a package of wholesale and retail financial services for its products, providing it a competitive edge in the motorcycles business in the US and Canada regions. HDFS financed 51% and 30.4% of the new Harley-Davidson motorcycles retailed by breakaway dealers in the US and Canada respectively in 2011. HDFS provides wholesale financial services to Harley-Davidson motorcycle dealers, including floor plan and open account financing of motorcycles and motorcycle parts and accessories. These specific services provide a competitive edge to the company in capturing a higher market share and enhancing its nates line.Strength Focused Research and Development Activities Harley-Davidson has a strong research and reading unit that facilitates innovation and attracts industry attention. Its Prod uct Development Center (PDC) undertakes the increment of new and better quality products. The company spent $145.4m, $136.2m, $143.1m and $163.5m in the fiscal years ended December 2011, 2010, 2009 and 2008 respectively on research and education activities.Harley-Davidsons continuous focus on R&D helped the company in launching innovative products such as Softail motorcycles with 1584 cc engine with new features such as new hand controls, a bigger odometer, and an anti-lock braking system option. Continuous research and development activity enables the company to watch over a leading position in custom and touring motorcycle market and develop products for the performance segment. Focused R&D activities enable the company to offer innovative products and improve its operational performance.Harley-Davidson, Inc. Weaknesses Weakness Product Recalls/Issues Product recalls/issues not only affects the companys current revenue, but could besides affect its long-term performance by r educing customer confidence. In February 2012, Harley-Davidson launched a repair service campaign to fix faulty bracken system in about 1,228 units of 12 models, including the Road King and the Electra Glide immoderate Classic.In October 2011, the company initiated a world-wide recall affecting over 308,000 units of its Touring, CVO Touring and Trike motorbikes. The company made this recall owing to a potentiallydangerous microbe with their braking systems, where in the problem with a switch on the bikes could cause the brake lights to stop working, or may even cause the rear brake to fail. Such recalls would hamper Harley-Davidsons brand image and have a significant impact on its product sales.