Executive Summary
For over one hundred years, Harley Davidson, Inc. has excelled in providing consumers with distinguishing style and exceptional quality. They continued to grow and increase profits in the face of much adversity. Their 2003 gross profit margin of 36.02% (Appendix A) was an outstanding example of how they were able to hold high profit margins in such a competitive industry. However, although they have had a strong grip on the American market, 50.3% in 2003 (Appendix A), they remain a luxury item in most foreign countries which has left them much room for expansion globally.
Many of Harley Davidson’s internal process worked to their advantage. They always excelled at continuously improving their products, processes, and operations. Employees also stayed involved in the organization (Vision, 2008). Management of the company consistently came up with inventive and intriguing ideas, such as the HOG membership and their Open Road Tour, while continuing to maintain close observation of and strict control of operations. However, not all is well internally in the organization. As mentioned previously, the company has an extremely strong U.S. customer base and had real troubles when trying to acquire more market share internationally (Citarrella and Watson, page 2). They also stayed too focused on the luxury line of products possibly missed on opportunities to acquire more market share through more economic products.
Harley Davidson’s innovation in the motorcycle industry has given them great opportunities and they can continue to excel, especially with the growing demand for motorcycles in many foreign countries. However, to get that market share they will have to compete against Japanese companies that have been able to produce comparable models for much cheaper prices, as well as companies from other parts of the world with low production