Marketing Strategy and Competitive Positioning pdf ebook

Peripheral business: areas where the firm can take a strong and secure competitive posi-
tion, but where the market simply does not deliver the benefits that the company needs. 
It is easy for those with great enthusiasm for a product or service in which they specialise 
to drive into these areas, but they will never deliver the margin and growth that is needed 
and will absorb resources and management time.
● 
Illusion business: areas where the market appears very attractive, because it is large, 
dynamic, expanding and so on. However, these are areas where the firm can only ever 
hold a weak position – perhaps because these are typically the markets defended most 
fiercely by entrenched competitors. It is easy for managers to be seduced into entering 
these markets because of the potential they offer, without acknowledging that they can 
never reach that potential.
● 
Dead-end business: markets that are not attractive and where the firm can only take an 
‘also-ran’ position. Few managers will deliberately enter these markets, but this may 
describe markets from which the firm should exit – they may have been attractive in the 
past, but have declined, or the firm’s competitive position may have been undermined 
by new competitors and technologies.
market out of America to avoid new EU duties. Some 
attribute recent poor sales to Mr Trump’s Tweet in 
August supporting a boycott of the firm. But, ‘most 
Harley enthusiasts don’t care,’ says Steven Levin, a 
surgeon from Chicago who has owned a succession 
of Harleys since college. 
Harley’s other challenge is to win over millennials, 
women and non-white buyers. Last year Mr Levatich 
unveiled a five-year plan centred on the introduction 
of 16 new motorcycle models such as Livewire elec-
tric bikes, and increasing Harley’s appeal in interna-
tional markets. 
Dealers are counting on the new models to be more 
affordable, and attractive to a wider audience. Harley 
may suffer from the quality of its older wares. Sales of 
used bikes are outpacing those of new ones by three 
to one (a decade ago it was the other way around). 
But while old bikes, and Harley accessories and cloth-
ing sold in specialist shops and on Amazon, are selling 
well, they won’t compensate for the damage done to 
the hogs by tariffs and youthful disinterest. 
Source :
from ‘Rough ride’,  The Economist , print edition | Business 
(02/02/19).
Discussion questions 
1 
Discuss Harley’s recent choice of target 
market(s). 
2 
What is behind Harley Davidson’s attempt to 
appeal to a wider audience?
Source : Company reports, The Economist.
United States
Rest of world
2014
15
16
17
18
0
100
200
300

---

232