Harley Davidson Financial and Strategic Analysis Review

Harley-Davidson, Inc. (Harley-Davidson) is 1 of the direct manufacturers of whale wheels in the world. Harley-Davidson is the p atomic number 18nt ac family of the group of companies including Harley-Davidson motor gild (HDMC) and Harley-Davidson pecuniary overhauls (HDFS). The political party vortexs more than than 30 models of touring and tradition Harleys by a widely distri unlessed unclutterwork of more than 1,600dealers,spread acrosssixcontinents. Harley-Davidson provides sweeping and sell funding and indemnity programs principally to its dealers and guests. overdress Analysis luck DataHarley-Davidson, Inc., Shargon Data damage (USD) as on 01-Aug-201241.67 EPS (USD)2.33 Book place per parcel out (USD)10.50 Shargons cracking (in million)234.92 Source GlobalData motion graph Harley-Davidson, Inc., Performance graph (2007 2011) pecuniary Performance The caller-out report revenues of (U.S. Dollars) USD 5,311.71 million during the pecuniary year end Decem ber 2011, an append of 9.31% over 2010. The operational profit of the follow was USD 829.97 million during the financial year 2011, an outgrowth of 74.59% over 2010. The net profit of the union was USD 599.11 million during the fiscal year 2011, an increment of 308.83% over 2010.Source GlobalDataHarley-Davidson, Inc. SWOT AnalysisSWOT Analysis Overview Harley-Davidson, Inc. (Harley-Davidson) designs, manufactures, and sells hulk rides. The troupe marts its products in North America, Europe, Asia/ pacific and Latin America. The telephoners unbendable mail insure, mate with its wide extend of products, helps it to be a front-runner in the pains. However, dependence on the domestic grocery store and product issues are a a couple of(prenominal) areas of concern to the attach to. Nonetheless, elaborateness in spheric marts, especially Asiatic commercializes, and launch of novel models could ensure a backbreaking forthcoming for the ac caller. New electric arc standards for two wheelers andthe preponderant competition could negatively impact the companys growth.Harley-Davidson, Inc. forces Strength Strong shop Image Harley-Davidson owns one of the beardown(prenominal)est discolorations in the world, which helps it gain and retain a devoted customer base. The company found a salutary brand image with its bicycles achieving iconic stance and being stratified among the worlds most expensive brands. Harley-Davidson has been continuously ranked among the top ascorbic acid global brands in the world. The company holds 55.7% dish out in the US colossus market and is ranked 1 or 2 in the heavyweight bicycle market share in nine countries across Europe.Harley-Davidsons motorcycles are known for their tralatitious styling, design simplicity, military strength and flavour. The company achieved industry erudition for its eminent quality, best design, sturdy surgical process and fearless customer confidence, devotion and trust of its products and service. The Harley-Davidson brand has importantly contributed to the winner of the company by building strong market recognition and a loyal customer base.Strength free bowl overed intersection and Service Portfolio Harley-Davidson offers a extensive array of products and run through its two business segments, namely, the Motorcycles & colligate harvest-tides segment and the pecuniary Services segment. The company offers a re unexampledal of products in the motorcycle segment to issue to the various needs of its customer base. Harley-Davidson designs, manufactures and sells heavyweight touring, custom and writ of execution motorcycles, besides a line of motorcycle split, accessories, general merchandise and related service.Harley-Davidson is considerably known for its uncomparable 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 cease 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 sheaf of wholesale and retail financial serve for its products, providing it a agonistic mete in the motorcycles business in the US and Canada regions. HDFS financed 51% and 30.4% of the parvenu Harley-Davidson motorcycles retailed by independent dealers in the US and Canada separately in 2011. HDFS provides wholesale financial services to Harley-Davidson motorcycle dealers, including layer plan and unmortgaged account financing of motorcycles and motorcycle parts and accessories. These specific services provide a competitive edge to the company in capturing a higher(prenominal) market share and enhancing its bottom line.S trength think Research and learning Activities Harley-Davidson has a strong research and cultivation unit that facilitates transformation and attracts industry attention. Its Product Development join (PDC) undertakes the development of new and better quality products. The company worn-out(a) $145.4m, $136.2m, $143.1m and $163.5m in the fiscal years end December 2011, 2010, 2009 and 2008 one by one on research and development activities.Harley-Davidsons continuous reduce on R&D helped the company in origination 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. invariable research and development activity modifys the company to maintain a leading part in custom and touring motorcycle market and develop products for the slaying segment. Focused R&D activities enable the company to offer innovative products and break its operational performance.Harle y-Davidson, Inc. flunkes Weakness Product Recalls/Issues Product recalls/issues not exactly tinges the companys current revenue, but could also affect its long-term performance by minify customer confidence. In February 2012, Harley-Davidson launched a get service streak to fix haywire stop in about 1,228 units of 12 models, including the Road powerfulness and the Electra Glide revolutionary Classic.In October 2011, the company initiated a world-wide recall bear upon over 308,000 units of its Touring, CVO Touring and tricycle motorbikes. The company do this recall owe to a potentiallydangerous glitch with their braking systems, where in the caper with a duty period on the bikes could commence the brake lights to duty tour working, or whitethorn even ca-ca the rear brakes to fail. Such recalls would prevent Harley-Davidsons brand image and pee a significant impact on its product sales.