Porter’s Five Forces Analysis of Harley Davidson 

Harley-Davidson is a motorcycle manufacturing American multinational company. The company started its motorcycle manufacturing business in 1903 and it is one of the few brands that have survived the economic crisis of various periods. Today, we’ll discuss Porter’s five forces analysis of Harley Davidson; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Key Building Motorcycle Parts of Harley-Davidson

• Clutch
• Brakes
• Engine
• Electronic components
• Bike suspension
• Piston
• Spokes
• Seats

Top Suppliers Countries of Harley-Davidson

• Japan
• China
• Mexico
• Austria
• Italy

Porter’s five forces analysis of Harley Davidson would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Harley Davidson Porter’s five forces analysis of the motorcycle company as follows;

Porter’s Five Forces Analysis of Harley Davidson

Let’s discuss Porter’s five forces analysis of Harley Davidson as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Harley Davidson

The bargaining of suppliers is lower in the motorcycle manufacturing industry as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Harley Davidson Porter’s five forces analysis of motorcycle company are as follows;

I-Parts, Components, and Supplies

The parts, components, and supplies of Harley-Davidson’s motorbikes are easily available in various countries across the world. Steel and aluminum are the main raw materials used for the production of the main frame and structure of motorbikes. However, the easy availability of raw supplies and materials decreases the bargaining power of suppliers and vendors.

II-Multiple Suppliers

The motorcycle manufacturing suppliers prefer to work with the world’s leading premium motorcycle manufacturing brand Harley-Davidson. It is because smooth supply of components to the company and it would keep their production operation running without any disruption. They won’t have to find a new client for the sale of their motorbike parts and components.

Bargaining Power of Buyers in Harley Davidson

The bargaining of Buyers is moderate in the motorcycle manufacturing industry as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Harley Davidson Porter’s five forces analysis of motorcycle company are as follows;

I-Well Aware Market

Motorcycle customers are highly aware of the various parts, components, and brands. Harley-Davidson takes advantage of this factor by offering top-quality motorbikes with unique designs and styles for customers. However, the company only targets the premium customer market and they don’t switch to other motorcycle manufacturing brands.

II-Parts, Price, and Quality

Harley-Davidson has a strong legacy and the company has successfully differentiated itself from the other competitive brands. Customers are aware of the fact that the price of other low-cost motorcycle brands would impact the quality and design. That’s why they don’t switch to another competitive brand, and it decreases the bargaining power of customers.

Threat of New Entrants in Harley Davidson

The threat of new entrants is low in the motorcycle business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the motorcycle business 5 forces analysis of Harley Davidson are as follows;

I-Investment

When it comes to launching the mass-scale production of motorcycles, dealership networks, suppliers, distributors, manufacturing, and assembling facilities; it requires high capital investment. Along with high capital investment, they need to build a premium brand image, a loyal database of customers, and earn a significant portion of the customer market. All of these factors push away the new entrants, and it decreases the threat of new entrants.

II-Regulatory Compliance

Harley-Davidson should comply with the transport safety regulations of the country; they are different in various countries. Complying with the legal requirements and standards increases production and administrative costs and expenses.

Threat of Substitutes to Harley Davidson

The threat of substitute products and brands is higher in the motorcycle industry as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the motorcycle business 5 forces analysis of Harley Davidson are as follows;

I-Multiple Transport Alternatives

Ordinary customers have multiple transport options available to them in terms of four-wheel automobiles and motorcycles of various brands in various price categories. They could easily find and choose an alternative relevant to their budget and other requirements. A variety of transport options would increase the threat of substitution rate.

II-Safety Limitation

Motorcycle ride has various safety limitations because you can’t ride them in either very hot or very cold environments. If you do, then it would badly impact your health. Such safety concerns would compel customers and safety enthusiasts would switch to other safer modes of transportation.  

Competitive Rivalry in Harley Davidson

The competitive rivalry among motorcycle companies is very high as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in Harley Davidson Porter’s five forces analysis of Motorcycle Company are as follows;

I-Tough Competition

Harley-Davidson is facing tough competition from other motorcycle manufacturing brands like Indian Motorcycle, Honda, and Yamaha. They all offer unique styles and designs of motorcycles for the customers; and have earned a significant portion of customer market share.

II-Research & Development

Harley-Davidson invests a significant amount of capital resources in research for the development of high-powered motorbikes. It has allowed the company to develop efficient engines, materials, and supplies for the motorcycles. As a result, the motorcycle brand has established a loyal database of customers due to efficiency, quality, and design.

Conclusion: Harley Davidson Porter’s Five Forces Analysis |5 Forces Analysis of Harley Davidson

After an in-depth study of Porter’s five forces analysis of Harley Davidson; we have realized that Harley-Davidson is the world’s leading motorcycle manufacturing brand. If you are learning about the Harley Davidson 5 forces analysis of motorcycle company; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.