...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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...Sales at Harley-Davidson”, pages 75-76 and “Delta Air Lines plays Catch-Up”, pages 77-79. This paper combines both case studies in one document, depicting business driven information systems used and strategic decision making from both well known businesses. Case Study 1 Chapter 2, Closing Case Two (Revving Up Sales at Harley-Davidson), pages 75-76 1. How does Talon help Harley-Davidson employees improve their decision-making capabilities? Talon is the information system that Harley-Davidson uses. It handles the inventory, vehicle registration, warranties and point-of-sale transactions for all Harley-Davidson dealerships. “The system checks dealers’ inventory, generates parts orders, and analyzes global organization information” (Phillips, 2009). Talon has been one of Harley-Davidson most successful informational systems used. Talon has provided Harley-Davidson employee the information needed to earn more revenue. Harley-Davidsons’ $50 million is more than 2 percent of its revenue and far above the manufacting industry average. “Talon gives Harley-Davidson managers’ a 360-degree view into enterprisewide information that supports strategic goal setting and decision making throughout all levels of the organization” (Phillips, 2009). 2. Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard. Marketing executive may want to monitor their performance, internal and external. This will show Harley-Davidson is keeping...
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...College 12-10-2010 Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz Western Michigan University Follow this and additional works at: http://scholarworks.wmich.edu/honors_theses Part of the Accounting Commons, Sales and Merchandising Commons, and the Strategic Management Policy Commons Recommended Citation Lenz, Sheila, "Harley-Davidson, Inc.: A Strategic Audit" (2010). Honors Theses. Paper 1853. This Honors Thesis-Open Access is brought to you for free and open access by the Lee Honors College at ScholarWorks at WMU. It has been accepted for inclusion in Honors Theses by an authorized administrator of ScholarWorks at WMU. For more information, please contact maira.bundza@wmich.edu. WESTERN MICHIGAN UNIVERSITY Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz December 10, 2010 LEE HONORS COLLEGE - CAPSTONE THESIS 2 Table of Contents Analysis Business 3 Mission Statement Analysis 3 Porter's Exercise 4 Marketing Strategy 5 Financial Analysis 5 IFAS Summary 9 EFAS Summary 10 SFAS Summary 11 Recommendations SWOT Analysis 12 Portfolio Analysis 16 Corporate Strategy 16 Business Competitive Strategy 18 Business Cooperative Strategy 18 Conclusion 19 Works Cited 20 Harley-Davidson, Inc.: A Strategic Audit Analysis Business Harley-Davidson, Inc., known for its famous bar and shield trademark, is based out of Milwaukee, Wisconsin. It is currently a public company with over 100 years of experience producing motorcycles. Harley consists of two...
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...BUSINESS STRETEGY | HARLEY DAVIDSON | | SUBMITTED BY- MANISHA YADAV(IB/05/04) | | SUBMITTED TO-MR. AMIT SAREEN | 9/14/2013 | | Table of content Chapters | Page No | Introduction | | History | | Value | | Vision,Mission | | Product Extension | | Intensive Strategies | | Organizational Chart | | Management | | İnternal & External Forces | | Micheal Porter Analysis | | Market Share | | Human Resource | | Strategic mix | | Competitive Profile Mix | | Internal Analysis Factor Mix | | SWOT & SWOT Matrix | | BCG | | Conclusion | | Possible Strategies | | Introduction Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. Founded in 1903 in Milwaukee, WI, Harley just celebrated its 100th anniversary with a series of events around the world that culminated in hundreds of thousands of motorcyclists rallying last summer on the shores of Lake Michigan. In 1929, there were 241 motorcycle manufacturers in the US. After the Depression, only two remained: Harley and Indian. By 1953, Indian went out of business, leaving Harley-Davidson as the only American motorcycle manufacturer. Financial difficulties in the 1970’s led to the parent company, AMF putting the motorcycle division up for sale. Without a buyer, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed...
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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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...Executive Summary- Analysis and Conclusion BUS499- Business Policy & Strategic Solutions Executive Summary – Environmental Analysis The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight motorcycle market are based on several factors; price, quality, reliability, styling, product features, customer preference, and warranties. Harley’s first segment is the motorcycle and related products business. It included designing, manufacturing, and selling primarily heavyweight touring and custom motorcycles and offering a broad range of related products that included motorcycle parts and accessories and riding apparel. The custom products charge a higher price because of its features, styling, and high resale value. Their target market is mainly in US. By the end of 1997, they have an approximate 48.3% share in the US market, 6.1% share in European, and 16.5% share in Asia/Pacific. New competitors have entered the marketplace because demand for the motorcycles has exceeded production. The demand is prospected to grow in the future, and the switching cost is low. A host of internal and external factors influence a firm's choice of direction and action and, ultimately, its organizational structure and internal...
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...Harley-Davidson: Preparing for the Next Century English 3345 - Business Team #4: Natalie Martell Martha Martinez Virginia Lopez Myles Melendez History, development, & growth: The birth of the Harley-Davidson legend began around the 1900’s, in a small shed in the Davidson family backyard in Milwaukee. What started out as an ambition for Walter Davidson, to be the best bicycle rider, turned out to be a step into a multimillion dollar business. William D., Walter, and Arthur Davidson, along with their long time friend William S. Harley, built their first motorcycle using the best available tools, which were their hands and brains. The Harley –Davidson Motor Company was put into motion in 1903 when they built three of the first model motorcycles, and so began its 100 year journey. In 1907, they had one full-time employee, and they sold 50 motorcycles, so they filed for incorporation of the company. The Davidson’s and Harley were always trying out new innovations to make their motorcycles better and faster. In 1908 the reputation of the company was raised a level higher through the winning victory race of Walter’s Harley motorcycle with the V-twin engine which they designed themselves. This race was one of many that Walter would go on to win with his Harley, and eventually transformed the company into the world's leading producer of motorcycles. They were always looking to improve and make the best machine there could be, and by 1918 Harley-Davidson...
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...Harley-Davidson: Preparing for the Next Century English 3345 - Business Team #4: Natalie Martell Martha Martinez Virginia Lopez Myles Melendez History, development, & growth: The birth of the Harley-Davidson legend began around the 1900’s, in a small shed in the Davidson family backyard in Milwaukee. What started out as an ambition for Walter Davidson, to be the best bicycle rider, turned out to be a step into a multimillion dollar business. William D., Walter, and Arthur Davidson, along with their long time friend William S. Harley, built their first motorcycle using the best available tools, which were their hands and brains. The Harley –Davidson Motor Company was put into motion in 1903 when they built three of the first model motorcycles, and so began its 100 year journey. In 1907, they had one full-time employee, and they sold 50 motorcycles, so they filed for incorporation of the company. The Davidson’s and Harley were always trying out new innovations to make their motorcycles better and faster. In 1908 the reputation of the company was raised a level higher through the winning victory race of Walter’s Harley motorcycle with the V-twin engine which they designed themselves. This race was one of many that Walter would go on to win with his Harley, and eventually transformed the company into the world's leading producer of motorcycles. They were always looking to improve and make the best machine there could be, and by 1918 Harley-Davidson...
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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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...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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...12/7/2013 Written Case Analysis | Group #4 | Harley Davidson | Group #4 Written Case: | Executive Summary: Harley Davidson, Inc. began operations in the first decade of the 20th century. Since that time they have developed three major business segments including motorcycles, transportation vehicles, and work within the defense sector. They are headquartered in Milwaukee, WI and in 1990 became the 865th largest U.S Company, as ranked by Business Week. Harley Davidson is best known for its superheavyweight motorcycles. By 1960, Harley Davidson was the undeniable market leader in the superheavyweight category of motorcycles. This was when Japanese manufacturers started to enter the market with lighter weight models of motorcycles which were not in direct competition with Harley’s much larger bikes. A large increase in supply, along with great marketing efforts by the Japanese manufacturers, rapidly increased the demand for motorcycles. Over the years, leading up to 1990, Harley Davidson has remained the market leader in the superheavyweight category of motorcycles with a 62.3% share of the U.S market. However, when looking at the U.S motorcycle market as a whole (see Figure 1), Harley Davidson only represents a 13.9% share of the market. The determining factor behind the lack of market share when looking at the macro motorcycle market is that Harley Davidson only produces larger bikes. They do not produce any motorcycles in the lightweight category. A...
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...Case Study 5 Kim Chau California Southern University MKT 86500 September 19, 2014 Dr. Hoon Harley-Davidson: Style and Strategy Have Global Reach Introduction In the case of Harley-Davidson, Style and Strategy Have Global Reach, a question of survival in an economic storm is raised – given a new CEO and a revised vision, can Harley-Davidson weather trouble times (Schermerhorn, 2011). Historically, Harley-Davidson was founded by William S. Harley and Arthur Davidson in 1903. They built their first three motorcycles in a shed in Milwaukee. By 1909, they introduced their trademark bike. It had 2-cylinder, v-twin engine which was also the faster bike at the time coming in at 60mph. During World War I, almost half of all Harley-Davidson motorcycles produced are sold for use by the U.S. military. At War's end, it was estimated that the Army used some 20,000 motorcycles in their efforts, most of which were Harley-Davidsons. By 1920, Harley-Davidson is the largest motorcycle manufacturer in the world. New Harley-Davidson motorcycles can be purchased from over 2,000 dealers in 67 countries worldwide (Harley-Davidson Timeline, 2014). In 1969, American Machine and Foundry Co (AMF) merged with Harley. During the early 80’s recession, market shares started to decline, revenue was at an all-time low. According to Daniel Klein’s tariff policy analysis (Klein, D., 1984), in 1980 the company had record sales of $289 million and pretax earnings of $12.3 million, but in 1982 sales...
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...1.0 Environmental Appraisal Analysis Environment refers to factors that can affect Harley Davidson’s directly or indirectly Kotlar and Armostrong (2011). For environmental analysis, Top-Down Approach will be followed. First, Harley should consider macro factor that can influence marketing plan. These will be evaluated with PESTEL analysis. Second, the company has to take insight on motorcycle industry of UK to examine competitiveness and long-term business prospects (Elliott, and Patton,1996). Porter’s Five Forces Model will analyze the industry. Finally, a SWOT analysis will be done to determine company’s suitability and vulnerability with UK market. So, the analytical framework will be as below. Figure 1: Framework for environmental Appraisal 1.1PESTEL Analysis The following factors will be considered as influential in PESTEL analysis. More factors will be included which management consider very important to take a strategic marketing decision. 1.1.1Economic Factors Economy of UK is rebounding after recession, which is again restoring consumers’ confidence for purchasing luxury product. Trading Economics (2013) stated The economy in second quarter of 2013 is growing .3% more than in 2012. The following chart will show the recovery of UK economy from fragile situation. Figure 1.2: GDP growth rate of UK Beyond economic parameter, the duty over foreign firm’s motorcycle export to UK is 6% where in addition to that VAT will be 20% on foreign...
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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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