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Business Man and Economics - Case Study Example

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Apple develops and sells personal computers, portable media players, mobile phones and computer software and hardware. As of September 2007, the company operates 200 retail stores in five continents.
"Niche marketers presumably understand their customers' needs so well that the customers willingly pay a premium" 11 is a strategy that has worked for Harley Davidson and the financials of its custom bikes market segment, the leader in grossing high sales volume at premium prices substantiates the fact. The following strategies must be implemented by Harley to maximize its profitability by bringing in more specialization in its core competency and niche markets.
Since Harley's high end custom bikes command as much as 50% of the market share, this denotes that competitive forces are not a threat and thus Harley must concentrate more on being a customer centered company. "By monitoring customer needs, it can decide which customer groups and emerging needs are the most important to serve, given its resources and objectives" 12. The USP that differentiates Harley from all its competitors is it's much sought after brand personality and a very high degree of brand awareness that commands a premium even in the resale market.
The Custom Vehicle Operation (CVO) can be further be strengthened by increasing vertical shaped markets to the current price and engine range simply by re-directing the focus from being a single segment concentration whereby "through concentrated marketing, the firm gains a strong knowledge of the segment's needs and achieves a strong market presence" 13, Harley can upgrade the program to be a selective specialization where "a firm selects a number of segments, each objectively attractive and appropriate. There may be little or no synergy between the segments, but each promises to be a money maker" 14, there can be many segments vying for the same product rather than multiple players within a single segment and also by introducing differentiated marketing based on product attributes.
Harley's 2005 model-year-line-up includes 32 models of touring and custom heavy weight motorcycles, a strategy that focuses mainly on increased prices based on increased demand created by limited ...Show more


In 1903 the Davidson brothers - Walter and Arthur, handcraft their first three motorcycles in Milwaukee, Wisconsin, the city of their current corporate headquarters. A. Davidson later joined the enterprise. Today they build the world's best motorcycles. Harley Davidson, Inc…
Author : faustino45
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