Harley Davidson

please answer question 4,5 and 6

4. Plot HD's portfolio on the BCG Matrix (Refer to Slide #11 in the ppt lecture slides). Anything that Harley-Davidson sells and generates revenue for goes on the BCG Matrix. One of those products is the Holiday Rambler. If you don't know what that is, you need to Google it. You will also need to put page numbers by each of the products indicating where you found the passage in the case explaining why you plotted it there. Stars: Question Marks: Cash Cows: Dogs: 5. You are in charge of managing HD's portfolio and making recommendations for growing the company and competitive sustainability. Using the Product Growth Matrix, come up with at least one recommendation for each of the following: Market Penetration, Market Development, Product Development and Diversification. (Refer to Slide #11 in the power point lecture slides) 6. In addition to the recommendations made in #5 above, what other portfolio recommendations would you make for HD? In other words, would you recommend Acquisition and/or divestiture? Be specific. Boston Consulting Group (BCG) Product Growth Matrix Product Emphasis Existing Products New Products Stars: SBUs whose products have a dominant market share in high-growth markets Question Marks: SBUS whose products have a low market share in high-growth markets ??? Market penetration strategy Seek to increase sales of existing products to existing markets Product development strategy Create growth by selling new products in existing markets Dogs: SBUS nobody wants Cash Cows: SBUS whose products have a dominant market share in a low-growth market Existing Markets Market Emphasis New Markets Market Diversification development strategy strategy Introduce existing Emphasize both products to new new products and markets new markets to achieve growth High Low Relative Market Share poter 2-11 The purpose of the BCG matrix is to aid management in decisions related to financial resource allocation by classifying the various SBUs into one of four categories based on the SBUS market growth rate and relative market share. The market growth rate is meant to provide an estimate of market attractiveness, while the relative market share serves as a proxy for company strength in the market. Market growth rate is usually measured in terms of the annual growth rate. Relative market share is typically measured by calculating the SBU's market share relative to its' largest competitor. Thus a relative share of. 1 would mean that the SBU has only 1/10th of the share of its largest competitor (falling into the low relative market share cell), while a relative share of 2 would indicate that SBU is the market leader, with twice the market share of its largest competitor (falling within the high market share cell). Some caution should be exercised when discussing market growth rates, as this figure does not take into count the overall size of the market itcalf BUILDING THE NEXT GENERATION OF HARLEY-DAVIDSON RIDERS OUR 10-YEAR OBJECTIVES 2M -50% 100 TOP 25% Dellver Superior Return on invested Capital for HDMC Build 2 Million New Harley-Davidson Riders in the U.S. Grow International Business to 50% of Annual Volume Launch 100 New High Impact Harley Davidson Motorcycles Grow our Business without Growing our Environmental Impact UNITED STATES STRATOR OUR STRATEGIES TE Grow Ridership Grow Share AND Profit Grow Reach and Impact Grow Share AND Profit Nall the fundamentals to compete and Win OUR 3-YEAR STRATEGIC FOCUS Create New Customers Strengthen the Dealer Network Localize Competitiveness . Embrace Used! HD Motoreyales Expand Dealer Network Target Competitive Riders Expand HD Touring Build Brand Awareness Through Apparel Serve the Customer Maintain Premium Brand Improve Organizational Effectiveness Drive Cost Competitiveness Leverage Strategy as a Competitive Advantage - PRODUCTS AND SERVICES OUR STRATEGIC ENABLERS FUNCTIONS Global Corporate Demand Services Motorcycles Parts & Accessories General Merchandise Financial Services WE FULFILL DREAMS OF PERSONAL FREEDOM