Harley Davidson. as a manufacturer of bikes. competes as portion of the “Recreational Vehicles” industry. Winnebago. Polaris. Thor. Arctic Cat. and Marine Products are merely some of the companies that besides compete under Recreational Vehicles. but these companies dominate the industry comprising of 92 % of the market portion. These 5 companies specialize in fabrication boats. jet skis. snow Mobiles. and terrain vehicles such as four-wheelers. Polaris being the lone company that even produces a bike.

Although Harley is categorized as viing in the recreational vehicle industry. it is more logical to compare Harley to its direct merchandise competition. This direct merchandise competition consists of four major rivals. including Yamaha. Kawasaki. Suzuki. and Honda. Compared to Harley Davidson. who specializes in bring forthing heavyweight bikes. the four Nipponese rivals manufacture a broad array of bikes from lightweight to heavyweight. in add-on to other merchandises such as autos. watercraft. and music equipment.

This enables them to appeal to a wider client base. while Harley entirely relies on the gross revenues of its heavyweight motorcycles. Yamaha. Kawasaki. Suzuki. and Honda used their trade name image from their other merchandises to interrupt into the bike industry and addition market portion. The Nipponese companies’ success in the heavyweight bike industry began with copying other merchandises. such as Harley Davidson’s designs and expression. but produced with cheaper inputs and an overall quality inferior to that of a Harley Davidson.

Over the old ages they have been able to better their quality. advanced designs. engineering and a cheaper monetary value. but they have been unable to vie with Harley’s trade name image. It is this trade name image. this aura. of having a Harley Davidson that has enabled them to rule gross revenues in the United States keeping a 53. 3 % heavyweight market portion in 2009. an 8 % addition from 2008. every bit good as 39 % of Canadian market portion.

Further. Harley has been able to duplicate its market portion in Europe over the past decennary from 6 % to 12 % On the other manus. Harley Davidson does non rule the market portion overseas. where its trade name image is non as leaden and lacks the production installations to maintain up with demand. In 2009 demand exceeded the figure of exported Harley bikes. Competition is based on a figure of factors including monetary value. quality. dependability. styling. merchandise characteristics. client penchant. guarantees. and handiness of funding.

New competition to Harley Davidson consists of little scale bike makers whose concern is based to a great extent on repute and entreaty to serious bike partisans. chiefly focused on wholly custom motorcycles. Big Dog and IronHorse are two companies that compete with Harley’s “All American” image while offering bikes that are to the full customizable and have more engine power so Harleys. although a steeper monetary value ticket is attached.

These little usage builders do non bring forth adequate bikes to endanger Harley Davidson’s market place. but the recent entreaty of these to the full customized bikes is something that Harley may take into consequence for its hereafter programs. This recent tendency has sparked Television shows. such as West Coast Choppers. and is an advantage the industry as a whole by assisting to increase involvement in bikes in the general populace. Up until a few old ages ago the market for heavyweight bikes has seen dual digit one-year growing. but the market has been maturating and growing in the industry has decreased in recent old ages.

Competition is based on a figure of factors including monetary value. quality. dependability. styling. merchandise characteristics. client penchant. guarantees. and handiness of funding. Business Level Strategy Harley Davidson has ever been known for its differentiated merchandises that have continuously stood out from the norm. Harley Davidson incorporates a focussed distinction scheme in order to derive a competitory advantage over other bike manufacturers.

A house differentiates itself from its rivals when it “provides something alone that is valuable to purchasers beyond merely offering a low price” . Harley Davidson does non merely sell transit. it sells a life style. Harley’s ability to develop its image of huskiness. originality. independency. and individualism supports its strong trade name image of doing quality bikes. It’s the nostalgia of old clip appeal and quality that makes people non merely desire a bike. but want a Harley Davidson bike.

It is because of this. among other grounds. that they are able to bear down a premium monetary value. $ 10. 000 – $ 35. 000+ . for their merchandise. An extract from their 2009 10-k Financial Statements states. “the suggested retail monetary values for the Company’s Harley Davidson bikes range from being comparable to being reasonably higher than suggested retail monetary values for comparable bikes available in the market. The Company believes that its larger-displacement merchandises continue to command a premium monetary value.

Harley Davidson has been peculiarly effectual at accomplishing its distinction advantage through careful scrutiny of the activities that clients undertake in choosing. buying. utilizing. and keeping their bikes. Harley additions client trueness and creates value for its clients through supplying trial drive installations at its franchises. funding. driving direction categories. insurance. service & A ; fix installations. owners’ nine activities. and assorted sponsored events for Harley riders.

The companies’ execution of H. O. G. ( Harley Owners Group ) in 1983 and one-year “Harley Davidson Rides” has immensely increased client trueness and continued to develop a sense of comaraderie between riders. In add-on to its dedicated trader web. the company besides uses smaller. on occasion impermanent retail mercantile establishments in high-traffic countries. such as airdromes. to sell accessary merchandises like dress. collectables. and accredited merchandises.

This gives Harley the extra exposure needed. without holding to pass 1000000s on other signifiers of advertisement. With such a devoted followers and strong trade name image. the Harley Davidson name frequently promotes itself. Harley spent $ 143. 1 million on advertisement and R & A ; D in 2009. Although a lessening of $ 40 million from 2007 ( chiefly to hike the bottom line ) . the company still spends a important sum on advertisement and R & A ; D to go on to bring forth advanced. quality. and extremely differentiated bikes.

The ground that Harley applies a focussed distinction. as opposed to wide distinction scheme. is because Harley focal points on bring forthing heavyweight bikes of 651cc+ engine supplanting. Harley Davidson’s direct competition ( Honda. Yamaha. and Suzuki ) specialize non merely in a broad array of vehicles such as watercraft and cars. but besides produce a broader assortment of bikes runing from lightweight to heavyweight. In relation to its competition. Harley’s focal point on heavyweight bikes provides sufficient grounds of a focussed distinction scheme.