...------------------------------------------------- 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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...Brand 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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...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...
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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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...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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...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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...Professor Eve Yeates, BS, MBA Strayer University October 13, 2011 Abstract Case study of “Revving Up 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...
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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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...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 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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...Despite their conception in 1903, Harley-Davidson and the motorcycle industry as a whole didn’t really take off until after the Second World War. Many people rode motorcycles during the war, with Harley-Davidson themselves supplying almost 90,000 motorcycles for the U.S. military during this time. Many veterans chose to purchase motorcycles upon returning home, as they enjoyed riding during the war and wanted to continue riding in their civilian life. This generation known as the "baby-boomers" quickly became the main target audience for many of Harley-Davidson’s marketing efforts. With sales increasing and the industry growing, many "motorcycle clubs" and "rallies" were introduced. Unfortunately, due to the lewd behavior displayed by most people associated with these clubs and rallies, bikers typically had an image of being disorderly and raucous. Harley-Davidson’s image itself took a big shot due to the Hells Angels. This was a motorcycle gang wishing to become notorious for "drug trafficking and other organized crime activities," who used only Harley-Davidson motorcycles. All of this combined to lead to a decline in demand and sales throughout the entire industry during the 1960’s. The industry was really helped out with the release of the Hollywood film Easy Rider in 1969. This film helped change the public’s perception of bikers and sparked an increase in motorcycle demand which has lasted to this day. The motorcycle industry offers products which can be viewed as luxuries...
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...STRATEGIC AUDIT HARLEY DAVIDSON Inc Audit Team: Graeme Eldridge Enya Gu Areeya Ongmongkonkun John Gao CONTENTS |Case Abstract |3 | |History |4 | |Current Situation | | |Performance |5 | |Strategic Position | | |Mission |5 | |Objectives |5 | |Strategy |6 | |Policies |6 | |Corporate Governance | ...
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...raucous. Harley-Davidson’s image itself took a big shot due to the Hells Angels. This was a motorcycle gang wishing to become notorious for "drug trafficking and other organized crime activities," who used only Harley-Davidson motorcycles. All of this combined to lead to a decline in demand and sales throughout the entire industry during the 1960’s. The industry was really helped out with the release of the Hollywood film Easy Rider in 1969. This film helped change the public’s perception of bikers and sparked an increase in motorcycle demand which has lasted to this day. The motorcycle industry offers products which can be viewed as luxuries or wants as opposed to necessities. When concerning Harley-Davidson, most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and off-time instead of during the work week. This implies that the motorcycles serve for recreational purposes and thus are an item which can be expendable at times. This has hurt the industry recently with the slight recession the United States economy is facing. Another interesting thing to note about the motorcycle industry is the different appeal bikes carry in different global regions. In the United States for instance, Harley-Davidson has had much success because of the market trends and tastes people enjoy. Harley-Davidson has benefited from a U.S. market which enjoys casual and recreational riding. This isn’t necessarily the case overseas, as in Europe the trendy...
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...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 has pursued younger riders and women as a...
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