...Table of Contents Executive Summary …..….…………………………………………………………………………………………………………………………1 Harley-Davidson’s Competitive Advantages ..………………………………………………………………………………………….2 Symbol of Innovation and Toughness ……………………………………………………………………………………….…2 Uniqueness and Distinction …………………………………………………………………………………………………………2 Facing Challenges ………………………………………………………………………………………….…….……………………..3 Future Sustainability ……………………………………………………………………………………………………………………3 Vulnerability ……………………………………………………………………………………………………………………………….4 Challenges of the 21st Century ………………………………………………………………………………………………………………….4 Strategies to Address the Challenges ………………………………………………………………………………………….5 Short-Term Strategies as Harley Matures ……………………………………………………………………………………6 Long-Term Survival ……………………………………………………………………………………………………………………..7 DaimlerChrysler Automotive Group …………………………………………………………………………………………………………8 Business Strategies ……………………………………………………………………………………………………………………..8 Production Issues ………………………………………………………………………………………………………………………..9 Harley-Davidson’s Transformation ……………………………………………………………………………………………10 Why DaimlerChrysler Fell ………………………………………………………………………………………………………….11 Ford Motorcycles ………………………..…………………………………………………………………………………………………………12 Strategies ……….…………………………………………………………………………………………………………………………12 Customer-Perceived Value …..…………………………………………………………………………………………………..13 Extension of the...
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...Fundamentals of Marketing Assignment 1 Date Due: 9 February 2009 Harley-Davidson Submitted by: Batirov Otabek Batch Number: 9 © OTABEK BATIROV, 2009 ALL THE RIGHTS RESERVED Harley-Davidson is the largest market share holder of motorcycles in the USA. Harley Davidson motorcycles are produced since 1903. The US army used HD motorcycles both in the first and second World War. The company operates in the US, Canada, Europe, Japan and Australia. HD headquarters is situated in Milwaukee, Wisconsin. I. Mission Statement We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments. II. SWOT analysis of HD 1. Strengths: a. High market b. High quality c. High brand awareness d. Stable contracts e. Experience 2. Weaknesses a. No adequate promotional strategy b. No permanent marketing research c. Bad distribution d. Price too high compared to the other existing similar products e. No policy for acquiring new customers f. High labour cost 3. Opportunities: a. Economic boom b. American product c. New categories of customers d. Increase in the market © OTABEK BATIROV, 2009 ALL THE RIGHTS RESERVED 4. Threats: a. The developing car industry b. Entrance of the Japanese competitors III. Business portfolio Harley-Davidson offers to the customers not just heavyweight motorcycles, but also motorcycle parts,...
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...III. External Analysis Opportunities: The second of the SWOT analysis includes a look at Harley Davidson’s biggest opportunities and threats. Harley currently operates in what is known as they heavyweight cycle market (over 650cc engines), this means that the sheer size and weight of their bikes set them apart from some of their other lighter, faster rivals. The heavyweight market can be broken down into three different segments cruisers, touring bikes, and performance models. Cruisers are the bikes that are generally associated with Harley Davidson’s, big, loud, low riders that are generally considered to be macho cycles. This style was introduced by Harley and makes up for more than half of the market. Touring bikes are motorcycles that are specifically designed for long distance riding. These bikes normally have features that include two way radios for the driver and passenger, heaters, radio, padded seats etc. This section of the market is dominated by car companies such as Honda and BMW who have engineered their bikes to provide the rider with a smoother, more comfortable ride over long distances. Lastly, performance models are modeled after racing bikes only larger. These bikes have the latest in high-tech engines and put their emphasis on speed and acceleration instead of comfort or styling. These bikes are the ones that generally dominate the European and Asian markets. One of Harley’s biggest opportunities for growth is overseas in areas such as Europe, China...
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...LMM358 Marketing Management Name: _______Mindy Bonte______ Case Analysis For: ______________Harley Davidson_______________________ |I.Current Situation |Harley Davidson is in a profitable position. They need to plan for their future which poses some potential| | |problems. | |Environment | | |(External) | | | 1.Economic (ext.) |People are buying items they normally would deem too expensive due to a better economy. The competition | | |has grown. | | 2.Social |Having a Harley Davidson is special and many people feel its name is more prestigious in the motorcycle | | |world as well as thought of as more quality than some of its competitor’s brands. | | 3.Political |Tariffs were increased in an attempt to help. Laws could change in the future. | | 4.Legal/Ethical |Helmet use...
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...Harley Davidson Business Analysis Part Three MGT/521 December 20, 2011 Clark MC Carrell Harley Davison Business Analysis Part Three The Harley Davidson Inc. is a company that was formed and founded in Milwaukee, Wisconsin. It is one of a very few that is an American company which manufactures and sells motorcycles. When an owner has a Harley Davison motorcycle they commonly refer to it has a Harley. The company sells motorcycles no smaller than 750 cubic centimeters for engine displacement. The distinct sound coming from the exhaust pipes and distinctive design of their motorcycles has paved the way for the Harley Davidson Company becoming a top seller for the motorcycle community in the world. This popularity in their motorcycles has successfully raised the Harley Davison Company to become a member in the prestigious Fortune 500 club. Harley Davidson recorded total revenue in 2010 of $4,859,336. This is increase from 2009, which recorded total revenue of $4,781,909. They were able to accomplish this by placing emphasis on certain strategies to adapt to changing markets. The Harley Davidson Company has incorporated 4 strategic pillars for a continued success to work towards the growth of the company. They achieved new strategic goals by focusing on the consumers because of the strong objectives to support the consumer through modern and ethical business practices. To include the ethical decisions to become a more environmentally friendly company, new technological...
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...------------------------------------------------- Harley-Davidson Question 1: What are Harley-Davidson’s current sources of competitive advantage? The challenge for a marketing strategy is to achieve sustainable competitive advantage. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justify higher prices. At present, Harley-Davidson has a number of sources of competitive advantage. 1. Brand image: Since its inception, Harley-Davidson established an image of “raw power”, which became its major selling point. Throughout its history, Harley motorcycles were associated with people who were willing to break the traditional mold or willing to live on the edge. Its brand image reflected rugged individuality and the frontier spirit of the United States. This strong sense of nationalism connected to Harley motorcycles resulted in brand recognition and loyalty that continues to this day. Harley’s “tough” brand image is a competitive advantage in terms of attracting customers who favor or relate to this image. However, in some cases, its brand image is a competitive disadvantage because it does not appeal to certain target segments such as female riders. 2. Product customization: The most distinctive feature of Harley was the V-twin engine. The V-twin engine’s simple design allowed owners to tinker with their engines. At present, Harley offers a complete line...
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...Harley-Davidson Case Analysis Harley-Davidson should tailor is product and service offerings to the 55-64 year old segment, and expand its Rental and Rider’s Edge programs to continue growing Market leader in motorcycles - Market leader with 50% domestic and 32% global market share in motorcycles - Stock prices CAGR since 1989: 32% - American legendary lifestyle brand - Loyal customers: 900,000 members in Harley-Davidson Owner Group - 50% of sales to repeating customers - Average customer age grew from 35 in 1994 to 47 in 2004 - Young customers are not attracted by the brand - Women are still only 10% of clients - 2005 sales target cut back by 10,000 bikes - Stock price dropped 17% Ageing customer base and difficulty to attract new clients How can Harley-Davidson continue to grow despite its ageing customer base and difficulty to attract new customers? Harley-Davidson should: Adapt product and service offering to cater for the 55-64 year-old segment, retaining it for 10 years longer Expand the rental program to increase seeding, bringing more new customers into the base Expand the Rider’s Edge program to increase seeding in the underexplored women and young segment Harley-Davidson dominated the US market during the first half of the 1900’s, but lost share to the devastating competition of Japanese manufacturers towards the 70’s 1908 – 1920’s 1930’s – 1950’s Strong brand image - Famous ambassadors - National symbol status Powerful/large motorcycle 1960’s – 1970’s...
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...Introduction Harley-Davidson, Inc. was established and entered the motorcycle industry in 1903. The company has primarily focused its resources on the heavyweight motorcycle segment of the industry and is differentiated from its competitors because its focus is only on the motorcycle industry as opposed to other transportation markets such as: cars, boats, ATVs or snowmobiles. The company has experienced both the “good and bad times.” The company was founded by several young men in 1903, was bought out by AMF, experienced a leveraged buyout and ultimately became incorporated with its IPO in 1986. In addition to a constantly changing ownership structure, Harley-Davidson has also experienced significant issues with quality control, inconsistent management and a reputation for being associated with tattoos and pornography. By 1998, the company resolved its quality and image concerns, gained financial stability but continued to face supply concerns and threats of competition by new entrants and possible product substitutes. The challenge facing current Harley-Davidson management is how to combine the company’s approach in marketing the Harley image with consistent financial stability and increasing market share to outperform the competition. Industry Overview Harley-Davidson competes against other American and several internationally based companies within the motorcycle industry. Harley-Davidson has focused...
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...Management Case study: Harley-Davidson Contents Question 1 3 Question 2 5 1. Brand elements 5 2. Criteria 6 Question 3 8 1. Custom Vehicle Operations program (CVO) 8 2. Harley Owners Group (HOG) 8 3. Bar café 8 4. Exchange of motorcycle 9 5. Companies can learn from H-D 9 Question 4 10 1. Definitions 10 2. Equally successful 10 3. Non-equally successful 10 4. Co-branding or not? 11 Question 1 ------------------------------------------------- Make a detailed SWOT Analysis of the Harley-Davidson Company, paying particular attention to the marketing mix (Product, Price, Promotion, Distribution, Personnel) STRENGTHS | WEAKNESSES | * Net income of 2003 was $760mn, its more than 30% as compared to the previous year 2002 ; * The standard and performance segments of Harley Davidson make up 70% of the European heavy weight motorcycle market ; * Harley-Davidson operates in two segments: Harley-Davidson motorcycles & related products and HDFS (Harley-Davidson Financial Services) ; * Harley-Davidson is the only major American heavyweight motorcycle manufacturer ; * Strong brand name ; * The HOG (Harley Owners Group), which have a 750,000 members worldwide is the industry’s largest company sponsored motorcycle enthusiast organization ; * Buell Riders Adventure Group (BRAG) was also formed recent ; * Customization of the bikes, this is Harley-Davidson’s major revenue maker; * Harley-Davidson have a good marketing...
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...Since Harley Davidson prides their brand equity on providing the consumer with a sense of independence, expression, and adventure they ultimately must focus on consistency without much deviation from their core products. For this reason Harley Davidson must identify opportunities for growth within their current business, or intensive growth. In intensive growth it is the goal of Harley Davidson’s management to review any opportunities for improving existing business. To do this they use the product expansion grid, which considers growth opportunities for current and new markets and products. Within the expansion grid there are three strategies that include “market penetration”, “market development”, and “product development.” Harley Davidson utilizes all three intensive growth strategies to increase their sales and profits. Harley Davidson uses the “market penetration strategy” to gain more share with its current products in its current markets by doing what they do best and sticking to it. Harley management applies their marketing appropriately in accordance with their customer’s needs, and nothing more. They market to passionate riders who immediately feel an “attitude adjustment” upon starting up their hog. Through the sub culture that Harley Davidson products have created over the years they must encourage current customers to buy more by offering products other than motorcycles such as clothing, events, museums, and community gatherings that all help them obtain...
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...Harley-Davidson: Strategic Profile and Case Analysis Della Shelly, Melie Solomon, Jim Tunison Misericordia University Table of Contents Section I: Introduction3 Section II: Company History3 Section IIa: The Road to Decline4 Section IIb: The Turnaround5 Section III: Porter’s 5 Forces6 Section IV: SWOT Analysis7 Section V: Looking Forward11 Section VI: Future Strategic Actions 12 Section VII: Achieving Continued Success 12 Section VII: Conclusion14 Section VII: Sources 15 ------------------------------------------------- Section I: Introduction Harley-Davidson is an American cultural and business icon. Surprisingly, it has achieved its fame and fortune by essentially relying on designing, manufacturing, selling, and servicing a relatively stable product: two wheels, a 45 V-Twin engine, and a set of handlebars. The most striking distinction about Harley is not the fact that it is successful in selling a single product for over one hundred years, but the fact that its motorcycles have maintained its attractiveness with a broad range of consumers. Outlaw bikers, investment bankers, and people in the middle of a midlife crisis, all seem to be drawn to its lure. Harley can attract such a melting pot of consumers because it is a representation of the American dream…Freedom. ------------------------------------------------- Section II: Company History Harley-Davidson enjoyed a decent amount of success soon after its inception in 1903. The founders, William...
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...Harley-Davidson Case Analysis Harley-Davidson Case Analysis Rayzhaun Jones Mississippi Valley State University Strategic Management Dr. Jimmie S. Warren Abstract With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and manufacturing techniques. Harley-Davidson is one of those excellent companies whom have challenged traditional ideas. We intend to show through this case study that any company can follow Harley-Davidson’s techniques and lead them to excellence. Mission Statement “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and too the general public an expanding line of motorcycles, branded products, and services in selected market segments.” Vision Statement “Harley-Davidson is an action-oriented, international company, a leader in its commitment to continuously improve its mutually beneficial relationships with stakeholders. Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities. Company Profile and Case Analysis Harley-Davidson Inc. is an American motorcycle manufacturer. Harley-Davidson specializes in the sales of heavyweight motorcycles that are designed for cruising on highways. Harleys have a distinct design and exhaust sound that have appealed...
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...Strategic Report for Harley Davidson April 4, 2006 1 Table of Contents Executive Summary ………………………………………………………… 3 Company History ……………………………………………………………. 4 Five Forces Analysis Internal Rivalry ………………………………………………………. 8 Entry …………………………………………………………………….. 9 Substitutes and Complements …………………………………. 9 Supplier and Buyer Power ………………………………………. 10 Financial Analysis ………………………………………………………….. 11 Strategic Issues and Recommendations ………………………….. 17 2 Executive Summary Harley Davidson remains a financially strong and stable company. During 2005 the company reported the 19th consecutive year of record revenues and record earnings. While Harley Davidson’s growth has slowed over the past several years the decline in growth rates are primarily attributable to a maturing market, which results in lower growth rates for all member of the motorcycle sub-industry. During 2006 Standard and Poor’s predicts that the motorcycle sub-industry will grow between 1% and 3%, a much slower rate than the double digit annual gains the sector saw throughout the 90’s and late 80’s. Despite the company’s strong financial outlook the stock price has not been performing well over the past year. The stock price fell dramatically in April 2005 when Harley Davidson management lowered guidance of new motorcycle shipments to the network of independent dealers. Wall Street analysts proceeded to predict doom for the company as it appeared that it would be unable to continue its...
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...revenues, and more, the SWOT analysis looks at the company from a different angle. SWOT stands for Strengths, weaknesses, opportunities, and threats. What are Harley-Davidson’s SWOT, specifically the opportunities and threats external to the organization and under consideration of the fact that they are looking to expand overseas? First we must define SWOT. The purpose of the SWOT analysis is to analyze the company from four key strategic areas to better determine what changes they should make. SWOT first looks at the strengths and weaknesses of the organization; these are internal factors to the company. This is to help the company get a firm grasp on its core market advantages and areas that competitors may criticize the company for. Companies typically make core strengths their focal point for marketing. The purpose of identifying and defining the organizations weaknesses is not only to bring them to light, but to understand them so that they can decide what areas to improve and what areas are inherent in their business. Opportunities and threats are factors external to the organization. Identifying opportunities will hopefully point out untapped opportunities organizational leaders should consider capitalizing on. Threats identify external factors like changes in government regulations, costs, environmental standards or any other condition change that can affect the company external to the company itself. The threats to Harley-Davidson are considerable. For starters...
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...Case Study: Harley-Davidson -Analyse Harley-Davidson resources and capabilities, and identify its key strengths and weaknesses - Analyse the international competitive environment in which Harley-Davidson is operating to identify its main threats and opportunities. Recommend a forward strategy for Harley-Davidson, which addresses these issues. International Management Individual Assignment Table of Contents 1. Introduction 3 2. Harley Davidson Overview 4 2.1. Harley-Davidson Current Strategy 4 2.2. Resources And Capabilities 5 3. Industry Analysis 6 3.1. Porter’s Five Forces Model 6 3.2. International Competitive Environment 7 4. SWOT Analysis 9 5. Forward strategy recommendation for Harley-Davidson 10 6. Conclusions 12 6. References 13 1. Introduction This report is based on Harley-Davidson, Inc., case study. The aim of this report is to analyse industry and international competitive environment where Harley-Davidson is operating in. One must apply and fully analyse theoretical concepts and frameworks in order to fully comprehend how Harley-Davidson is differentiate itself in the international competitive environment and what strategies is using to achieve higher market share. The empirical material is being analysed by exploring the general information of Harley-Davidson company itself, following by the industry and competitive environment analysis, review of SWOT theoretical framework. Finalising with the recommendations of forward...
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