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Harley Davidson Case Study Analysis

In: Business and Management

Submitted By mdviner
Words 1810
Pages 8
Case 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 its efforts

specifically on the heavyweight segment whereas other companies have either spread

their focus amongst lightweight cycles, performance cycles and other types of vehicles

such as: cars, trucks, boats and ATVs. The motorcycle industry continues to grow and is

attractive to a larger customer base. Currently, several competitors are beginning to enter

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