Strengths

Customer Loyalty
Trade Mark & Logo
Harley Events in over 100 Countries
USP- Unique Sound
Leader in Technology
Huge Investment in R&D
High Retention of Customers-42%
Multiple models for different market segments
Financial Strength
Financial Services for Dealers & Customers
Largest Market Share holder ie 52%
Largest Dealer Base at USA -630 Dealers
Highly Influential
Focused Events & advertising
Loyalty Groups
Strong Branding Activities
Rider’s Edge….Academy
Dealers Expansion-Trust in Brand
7% market Share in Europe with 350 Dealers
22% Market Share in Asia/Pacific with 213 Dealers
Manufacturing Plants at USA & Assembly Plants at Brazil for market reach.
48% Market Share in 651CC Class
Consistent Double Digit Growth Trend
Higher Re-Sale Value as compared to Competition.

Weaknesses
Up to 50% Higher price than Competition.
Production Capacity Costraints.
Lack of Demand Estimation
Lack of Planning…loss of Sales Potential.

Opportunities
High Tariff on Imports
Support to Local Industry
Customer Profile-Married Male, over 40,income bracket $78,600, Educated.
Customer Considerations- Price , Quality, Reliability, Styling, Customer Reference, etc.
9% Female Customers
92% Repeat Customers
European Market comprises of 74% Standard & Performance Category bykes.
US Market is growing by 10%
5% Annual world market growth.

Threats
Fierce Competition
Price War
 EFE – AOL
Key External Factors Weight Rating
Opportunities
1. Explosion of Internet Users 0.05 4
2. 53% of US Households had PC (1997) 0.1 4
3. 37% had online access 0.1 3
4. Market was growing and receptive to new
0.05 3
technologies

5. Value added services was the key 0.1 4

6. New packages & bundle offers could add

0.1 4
customers.
7. Investment in technology could add to
0.1 4
give more benefits
8. Competition was ineffective 0.05 4

Key External Factors Weight Rating

Threats
1. New Up Coming Markets 0.05 4
2. Investment Risk were high 0.1 3
3. Law suits against Incompetent services 0.05 2

4. Consistent Investment in Technology 0.05 4

5. Competition 0.1 4

Total 1
Conclusion
The Matrix Suggests that there was a definite
opportunity available for the Visionary
Organization to invest in technology & take the
lead in supplying online differentiating
customized services to a new fast growing
market of consumers using on line services.

Evaluation concluded that AOL was geared to

avail the maximum output by meeting its EFE
challenges positively & agressively .

The IFE Matrix Summarizes & Evaluates the

Major Strengths & Weaknesses in the
functional area of basics & also provides bases
for identifying & evaluating relationship among
those areas.
 IFE – AOL
Key Internal Factors Weight Rating
Strengths
1. Visionary Leadership 0.1 4
2. Technological Advancement 0.02 3
3. Product Positioning 0.1 3
4. Customer Centric Product 0.1 3
5. Aggressive Promotion Strategies 0.05 3

6. Package & Bundle Offers 0.1 3

7. Acquisitions & Merger Strategies 0.1 2

8. Strategic Alliances for Value Added

0.05 3
Services.

9. Aggressive Expansion globally to access

0.05 4
customers world-wide.

10. Group Financial Strength 0.03 3

Weakness
1. Expenses against Revenues 0.05 2
2. Cost of Acquiring the new Customers 0.05 3
3. No Dividends for Shareholders 0.05 2
4. No or very Low Profits (1996/99) 0.05 3

5. Cash Flows were used in acquisitions &

0.05 2
expansions.

6. Merger with Time Warner resulted in

0.05 2
heavy top Management.

Total 1
Conclusion

The IFE Matrix of AOL suggested that

Organization was aware of its strengths & used
it positively to attain maximum output whereas
at the same time AOL mostly aware of its
weakness & taking the right measures to
control those.

However, their cost of acquiring customer is

high & giving no dividends to share holder
could result in future problems.
Prodigy
CSF’s Wt Rating
Market share 0.15 2
Technology 0.08 2
Fin position 0.1 2
Prod. Quality 0.08 2
Cons. Loyalty 0.02 3
Sales Distr 0.1 3
Global Exp. 0.15 3
Org. Structure 0.05 3
Prod.Creativity 0.04 2
E-commerce 0.1 3
Customer Serv 0.1 3
Price competitive 0.02 2
Mgt. experience 0.01 2

Total 1

AOL Major strengths & weaknesses against Competitors were evaluated in detail & it was concluded that AOL st
beating competitors by providing highly innovative & technologically advanced customer centric pr
It was also established that AOL visionary leadership made its services available to global customers.
Wtd Score

0.2
0.4
0.3
0.3

0.4

0.4

0.4
0.2

Wtd Score

0.2
0.3
0.1

0.2
0.4

3.8
 Wtd Score

0.4
0.06
0.3
0.3
0.15

0.3

0.2

0.15

0.2

0.09

0.1
0.15
0.1
0.15

0.1

0.1

2.64

Prodigy Compuserve AOL

Wt’d Score Rating Wt’d Score Rating
0.3 3 0.45 4
0.16 2 0.16 4
0.2 3 0.3 3
 0.16 2 0.16 4
0.06 3 0.06 4
0.3 3 0.3 4
0.45 2 0.3 4
0.15 3 0.15 3
0.08 2 0.08 4
0.3 3 0.3 4
0.3 3 0.3 3
0.04 1 0.02 3
0.02 3 0.03 4

2.55 2.61

& it was concluded that AOL strategies are very well placed & capable of
vanced customer centric products at a very competitive price.
o global customers.
AOL
Wt’d Score
0.6
0.32
0.3
0.32
0.08
0.4
0.6
0.15
0.16
0.4
0.3
0.06
0.04

3.73