...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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...Management Strategy Student: Stella( Hongmiao) Li Professor: Dr. Schuler Jan.12 2016 Harley-Davidson Case Study Report Harley-Davidson was found in 1903 by William S. Harley and Arthur Davidson,it is an iconic American motorcycle company. Harley-Davidson has been a publicly traded firm since 1987.It has two primary divisions:Motorcycles and Related Products and Financial Services,the company has been survived for over 100 years, it focused on it’s product and strategy. It has below external environment threats. Harley-Davidson product are considered as leisure items,it means that in many consumers’ eyes, purchasing motorcycles,performance parts,and hight-dollar apparel is a luxury rather than a necessity. Because of this,Harley Davidson’s product must compete for funds and consumers budgets.When economic conditions are changing,the motorcycle market tends to experience different in terms of generating adequate sales. While Harley-Davidson’s revenue streams originate from several sources, very few of them appeal to a cost-sensitive consumer base. HarleyDavidson managed the firm’s target market is changing,the demand for the products is changing. Individually and collectively these issues pose a real challenge to the company’s long term success. Haley-Davidson was changed to it’s target market as first step to appropriately serving the market needs. Historically, the firm’s target market has been males between the age of 29 and 55, in the last ten years, Harley-Davidson...
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...Moto-Mods When one thinks of a motorcycle, Harley-Davidson generally comes to mind. Harley- Davidson is America’s oldest and most renowned motorcycle company (Corporate Design Foundation, 1995-2011). The company prides itself with its distinguished design that customers have come to love and has been a part of the company since its beginning. Because of that, Harley-Davidson has chosen not to abandon its original design but simply to enhance it. Accordingly, the company has given birth of a new idea to customize the tanks and fenders without altering the prestigious Harley design. Self-application decals called Moto-Mods are less expensive than opting to paint the motorcycle parts, and it aligns with the company’s vision. A successful marketing plan of this new idea involves a thorough research of the potential strengths, weaknesses, opportunities, threats, and trends. When marketing a new product, the company must consider numerous different variables. Specifically, Harley-Davidson discusses the segmentation and target market for the new product, and how it relates to the Moto-Mods. Also described is how consumers have an effect on the market strategy. The promotional strategy of the company is dependent upon the target market and its buying preferences. Last, every successful company has competitors and although Harley has its customers are “Harley for Life” they are trying to offer products like the competition that will interest consumers shopping for a bike...
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...“Harley Davidson” Team #1: Tamala Hamilton Emmy C. Rodriguez Jason N. Cedillo Nov. 17, 2007 “Harley-Davidson” Harley-Davidson motorcycles have been around for over 100 years, and from what Harley has been able to accomplish throughout the years, I think it is safe to say that Harley-Davidson will be around for another 100 years. Since its first motorcycle built in 1903 by William Harley and the Davidson brothers, Harley-Davidson has been transformed into an American icon. Every customer feels like each Harley-Davidson bike is custom built to suit their individual taste and style like the loud roaring sound, unique powerful engine, and its rugged bad boy image. With all the personas and symbolic labels that Harley-Davidson possess, this little bad boy company manages to incorporate the concept of family first to its employees making it one of the best companies to work for. The road to success did not come easy for the Harley-Davidson company. The company had several ups and downs that nearly forced the company to shut its doors of operation permanently. With the many different CEO leaders came different leadership styles, each with its own distinctiveness that rescued the company to only bring it back down to near destruction. The Harley-Davidson company finally resurrected itself when a group of senior executives managed to borrow enough money to purchase a buyout of the company to take full control of Harley-Davidson and make the necessary changes...
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...advantage. So, HDI is seeking to penetrate the market as well as engaging in market development, which in this case means attracting a new demographic segment of younger and European customers it has not yet attracted before due to several reasons such as the price and the appeal of the Harley Davidson brand as being a motorcycle “an old guy would drive”. As stated in the case study, HDI does not and will not have cost leadership in the industry it competes in. The huge gap between Honda which produces over 5 million bikes annually and HDI, which produces slightly over 200.000, allows Honda to benefit from economies of scale and therefore offer their products at lower prices than HDI. The relatively small size of HDI limits its ability to invest in technology and new products, which means that HDI neither has the most advanced technology, nor superior performance. However, as the company recognizes, it is not selling motorcycles, it is selling the “Harley Experience”. This lifestyle and spirit, which no competitor has been able to copy or even beat so far, is the competitive advantage and USP of HDI. Harley Davidson motorcycles are not primarily a transportation vehicle, but a statement of style. The HDI image and the brand loyalty among its consumer base are the company’s strongest assets. As the demand in Europe is increasing, HDI should consider expanding its production capacity. This might be necessary anyway, as there is already a huge waiting list in the home market, which...
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...1. How does Harley-Davidsonbuild long term customer relationship? As a company who sold more than 900,000 units of motorcycle, Harley Davidson must be made a very good relationship with its customers, especially the long-term customers. We all know that Harley-Davidson users are not only men, but also women. Even in some products, they make teenagers ride them too. So that, the company needs to keep their relationship in the right ways. In a case, Harley-Davidson Company builds a good relationship to the customers by shortening the distance between the company and its customers. They make a community in every genre or style, by website especially. For example in an area or in young executive forum, and also Harley-Davidson make the community for the female users. Those people often make a touring event with all the community members. Harley-Davidson also make a gathering event to celebrate the Harley-Davidson anniversary in every single year until now. The informations are available in the website. Included the gathering date for the communities and events that will be held by Harley-Davidson Company. Usually, the communities had been included in a group that facilitated by the company, it called Harley-Davidson Owner Group (H.O.G). Everyone who joins in this group can get a lot of benefit. There, they can share every experience they got when ride the motorcycles. In the other side, the company can reach the advantages too. They give the members the information about...
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...HARLEY – DAVIDSON: Preparing for the Next Century Harley-Davidson (Harley) was founded in 1903 as a small business and became the largest motorcycle company in the world after 15 years of operations. Moreover, by 1950, Harley-Davidson was the leader in the U.S. Market with over 60% market share. Historically, the key success factor in Harley-Davidson combined two important ingredients: several competitive advantages and favorable conditions in the motorcycle industry since the industry was almost new and the barriers to enter or the forces affecting it were weak (see appendix 5.1). After the victory of Walter Davidson riding a Harley-Davidson in a race and the development of unique innovations such as the V-twin engine, Harley obtained a strong reputation of being the pioneer in the motorcycle industry. Further, a high investment in Research, Development and innovation, an adoption of an “image and lifestyle” marketing strategy, the “raw power” appearance of its products, and the powerful connection with the American national symbols, made Harley-Davidson very attractive for the society, and help the brand in gaining customer´s loyalty (especially the men). Through Porter´s 5 forces framework (see appendix 5.1), it can be noticed that by the moment Harley-Davidson entered to the industry, the market was plenty of business opportunities and this context allowed Harley-Davidson to obtain a strong position until 1960: low barriers to entry due to the technological investment...
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...Harley-Davidson Case Analysis MGMT 4290 Professor McGowan Keiven Cosgriff I. CORE PROBLEM Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled...
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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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...Executive Summary “Harley-Davidson is the iconic American motorcycle manufacturer. Founded out of a small shed in 1903 by William S. Harley and Brothers Arthur and Walter Davidson in Milwaukee, Wisconsin. The Motor Company produces traditional cruiser motorcycles utilizing air-cooled V-Twin engines. When Harley and Davidson produced and sold their first motorcycle in 1903, they were one of many small motorcycle marques springing up across the country. Flash forward more than a century and the Harley-Davidson brand is so rooted in American culture that the history of the company intertwines with the history of America itself. “ Harley- Davidson a brand that say I’m an American with its strong image they summarize what biking is and isn’t. They produce quality products that are reliable and durable. With so much more to offer Harley-Davidson cannot compete with the Japanese in terms of market share in Europe they only have 6.4% which is excruciating for a company who consider their product as a luxury item with all top of the line parts, brand image ,and all the thing they offer to the consumers. That’s why we look for alternative that could be beneficial to Harley-Davidson which is Market penetration, market development, and product development in Europe. We generated this idea ease them and with employees who know what their job is and make the necessary adjustment in their product or service need not worry of what will happen. Situational Analysis Environment The...
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...Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled 48.9% of the U.S. and Canada market. Further, Harley has produced 37% average annual gains...
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...Harley-Davidson: Enterprise Software Selection History William Harley and Arthur Davidson founded the Harley-Davidson Motor Company in 1903. By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. The company survived quality problems and financial issues in the mid 1980’s and remains the largest motorcycle manufacturer in the US. Through the years, the Harley brand had developed into a spirit of youthfulness, independence, and recklessness. However these ideals are accompanied by a strong sense of community. The company structure captures this unique culture by utilizing self-directed work teams in an organizational structure of three interlocking circles – Produce Product (PPG), Create Demand (CDC), and Provide Support (PSC). Consistent with this culture, through the years, Harley-Davidson encouraged site independence. However, when Gerry Berryman joined Harley-Davidson in 1995 as VP Materials Management, he recognized the strategic opportunity that existed in optimizing supplier relationships throughout the company. Therefore, in 1996, Harley-Davidson began the development of a corporate Supply Management Strategy (SMS) intended to move the company from a site-specific, transactional mentality to a long-term focus on supplier relationships. By July 1997, the initial planning meeting was held for an integrated procurement system, the supplier information link (SiL’K). Harley-Davidson followed a very thorough and rigorous process...
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...Harley Davidson's Traditional Targeting and Positioning Strategy I am a motorcycle enthusiast who has been riding since 1997. I’ve always enjoyed my passion for the open road and the feeling of being free. This Harley-Davidson motorcycle provides me with a euphoric experience of “the wind is beneath my wings”. I like enjoy the fundamental aspects of riding quickly but safely. I get consumed in it because you can lose track of time and ride all day and night. The best part about it is, there doesn’t have to be a defined end destination, you can just get on it and go. You have the capability to travel where most cars can’t because of its maneuverability. Harley Davidson’s motorcycles are classic custom bikes that provide the comforts of cruising, sporting, or rugged cycling. This case will briefly describe Harley Davidson's traditional targeting and positioning strategy to attract women customers. Harley-Davidson and motorcycles are usually considered a masculine sport intended for men (Mitchel). However, there are women out there who enjoy the freedom of riding their own Harley. Harley Davidson is fully committed to fostering and growing the women motorcyclist market. Women today represent a large sector of the workforce, enjoy higher incomes than 20 years ago, and possess more disposable income. Furthermore, women are much more empowered than ever before and are encouraged to exercise their freedom of expression and individualism. To fill their psychological needs...
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...Factors Affecting Global Economy of Harley Davidson Abstract This study will analyze globalization strategy of Harley Davidson. Harley Davidson is an American heavyweight motorcycle manufacturer. It has already established a brand name in Europe but now wants to expand dealership network across Asia. Harley Davidson is known for manufacturing heavyweight motorcycles but now they want to manufacture all types of motorcycles. Later part of the study will explain about internet business model. This report will discuss application of internet in terms of digital marketing. Harley can use different components of digital marketing to expand their business. Finally this study will focus on competitive advantage that Harley can get by using digital marketing medium. Table of Contents Motivations/Risks Associated with Global Expansion Strategy 5 Motivation 5 Risk 6 Competitive Advantage in Global Market 8 Entry Strategies for Global Expansion 8 Internet Approach Strategy 10 How the Internet Adds Value 10 Internet Business Models 11 Brokerage Model 11 Advertising Model 11 Infomediary Model 11 Merchant Model 11 Community Model 11 Subscription Model 12 Competitive Strategies 12 Leverage e-business Capabilities 13 References 14 Harley Davidson Harley Davidson is an iconic motorcycle brand headquartered in Milwaukee,USA. It was founded in 1903 by William S. Harley and Arthur Davidson. Harley Davidson was one of the major two motor...
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...Case Analysis 2: Harley-davidson MKT 201:001 Long Island University Angel Pagan November 17, 2012 Case Analysis 2: Harley-Davidson This case focuses on the iconic motorcycle brand of Harley-Davidson. Harley-Davidson is an American motorcycle manufacturing company founded in Milwaukee, Wisconsin. Since Harley-Davidson was established in 1903, the manufacturer has experienced its ups and down. It especially encounters struggles like any other automobile industry during economic downturns. On the verge of bankruptcy around 1980, Harley-Davidson made a surprising comeback. This comeback was mainly a result of Harley-Davidson’s incorporation of customer services into its products, product differentiation through quality and design as well as focusing production on a consistently high level of quality. Today, the company’s annual worldwide sales total more than $4 billion worldwide and have an annual output of 200,000 motorcycles along 35 different models in seven product lines. With these results it is safe to say that Harley-Davidson dominates the U.S. motorcycle market and is also strong in Europe and Japan. Harley-Davidson does a very good job at differentiating its product. In fact, product differentiation is the main component of Harley-Davidson’s marketing strategy. They want to offer a motorcycle like no other motorcycle on the market at the highest quality. Harley-Davidson not only stresses its level of quality but its consistency of quality as well. Quality...
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