...international business environments Harley faces? What types of risks does the firm face? The nature of the international business environments Harley faces are complex and varies due to cultural and regional needs of the diverse markets it competes in. This is shown by the differences of the sales mix in U.S. and Europe as revealed in exhibit 1 of the case. For example, in 2006, custom models accounted for 47.4% in U.S., whereas it accounted for 13.4% in Europe. In the U.S., other sales of models based on different criteria such as performance, touring, and standard accounted for 15.1%, 35.5%, and 2.1% respectively. Europeans have different preferences however. Performance, touring, and standard accounted for 41.4%, 26.1%, and 19.2% respectively. The reason Harley faces such diversification is clearly due to customer preferences and market demands. According to chapter 1 lecture slides, I believe that all four types of risks in international business are present: (1) Cross-cultural Risk: Harley operates in different facilities in the U.S., Brazil and Australia. Potential growth markets include Canada, Japan, Australia, Latin America (Brazil), India, and China. There are many cultural differences in languages, lifestyles, customs, and religion of the various countries. These differences may lead to inappropriate business strategies and ineffective relations with customers. However, understanding the different markets would be beneficial to Harley. (2) Country Risk: Differences in...
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...Harley We think it would be interesting to quote first Harley-Davidson's mission, in order to get a first approach of what is the purpose of the company from their point of view. The mission talks first about dreams, rather than motorcycles, which is what the public has in mind. This mission says: "We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." We are going to see how their promotional strategy keeps the track of their mission statement, and how they try always to fulfill those dreams. Harley-Davidson uses advertising and personnel selling for their promotional mix. The advertising that Harley-Davidson utilizes nationally are four to five television commercials a year. These commercials are institutional because they are advertising the company and not a specific product. They also have institutional advertisements in national magazines such as Road & Track, Popular Science, and Fortune as well as specific motorcycle magazines as Easy Rider. Locally, individual Harley-Davidson dealers advertise on the radio and through direct mail. Harley-Davidson uses personnel through their 595 dealerships located throughout the United States. A customer has to go to a dealership in order to purchase a motorcycle. While they are there they are attended to by sales people that answer any questions they have and help them...
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...Harley-Davidson/Ducati Case Study November 20, 2013 Question 1 Ducati: Ducati is an Italian motorcycle manufacturing company that is renowned for its high performance and stylish motorcycles. Ducati is committed to racing competitions, state of the art design, style, and most importantly, an immense passion for bikes. Ducati has created a strong bond with its customers, beginning on the racetracks and spreading worldwide. Ducati builds high performance bikes for bike enthusiasts, known as “Ducatisti”. Ducastisti are individuals who value performance as the main attribute in a motorcycle. Since Ducati delivers this, it creates brand loyalty. Since the early 90s, Ducati has created a distinctive community image with local and national Ducati enthusiast clubs by placing Ducati as a symbol of refined skills and craftsmanship that every motorcycle evokes and represents. In the World Superbike Championship, Ducati has won 15 out of the last 18 Riders’ titles and 16 Manufacturers’ titles. In conclusion, Ducati customers are confident that they are purchasing high performance motorcycles. Harley Haley Davidson is exhibited as an American icon. Consumers view and associate Harley Davidson with riders, wear leather, have tattoos and with police officers, military dispatch riders and motorcycle gangs. Harley’s image is also viewed as something that is catered for and used by Caucasian American males in their 40-50 (Nolan pg.2-3).Harley Davidson’s riders feel a lifestyle connection...
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...Summary of Harley-Davidson case study Harley-Davidson is the first name that comes to our mind when the topic about motorbikes comes up. The rugged yet beautiful motorbike is a U.S. bound brand that inspires many to own its customized bike with the iconic engine (Kotler and Keller, 2012). Today, Harley-Davidson motorbikes are well known by all; bikers and non-bikers around the globe. The two big questions running through our minds would be how it is accepted globally and how their customers remain loyal. Well, the dealers of Harley-Davidson maintain close relationship with their customers via face-to-face communication and social media (Kotler and Keller, 2012). What helps Harley-Davidson to understand their customers need better is by conducting research to keep up with their customers changing expectations, which comes with the trend and their experiences. Greater brand loyalty and unique experiences is built when they know Harley-Davidson takes their opinion into account very seriously. Reflection of freedom, individualism, the ability to connect with their friends through the H.O.G program (Harley’s Owners Group) is what one would get when buying a Harley. This program allows the members to enjoy various benefits such as discounts, major rides, charity events, new model launches, fund raising, riders appreciation night and much more. Harley-Davidson feels that people development such as by providing training, sharing company values, philosophy, effective communication...
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...Boutiques and 1 clearance stores Connecting with customer 1) Maintain "no question asked" return policy. 2) Sales representatives send thank-you cards to customers who shop there and have hand-delivered special orders to customer's homes. 3) Installed a tool called Personal Book at its registers that allow salespeople to enter and recall customer's specific purchases in order to better personalize their shopping experiences 4) Provides customers with multichannel for shopping, allowing them to buy something online and pick it up at a store within an hour. 5) Fashion Rewards Program, rewards customers on four different levels based on their annual spending. a. Customers who spend $10,000 annually receive complementary alterations, free shipping, a 24-hour fashion emergency hotline, and access to a personal concierge service b. Customers at the highest rewards level ($20,000 spent annually) also receive private shopping trips complete with restocked dressing rooms in the customer's specific size, champagne, and live piano music; tickets to Nordstrom's runway fashion shows; and access to exclusive travel and fashion packages, including red carpet events. 6) When a new store opens, Nordstrom connects with the surrounding community by hosting an opening night gala complete with live entertainment, a runway fashion show, and the ultimate shopping experience to help raise money for local charities. Questions: 1) How else can Nordstrom continue to provide exceptional customer service...
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...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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...HARLEY-DAVIDSON INSURANCE WE CREATED HARLEY-DAVIDSON INSURANCE FOR ONE REASON—TO MEET THE NEEDS OF EVERY RIDER Harley-Davidson Insurance is designed to protect everything that Harley-Davidson® is built on—you the rider, your Harley-Davidson® motorcycle, freedom, independence and the Harley® way of life. With options ranging from basic liability insurance to full coverage, with protection for additional custom parts and equipment, there is a policy for virtually every rider. And, Harley-Davidson Insurance is available for nearly all makes and models—even other brands of motorcycles. With Harley-Davidson Insurance, you get great coverage along with customer and claims service from representatives who know Harley-Davidson® motorcycles. Enjoy the ride even more with an affordable policy that protects you and your bike the right way. Ride Safe, Harley-Davidson Insurance Services INSURANCE THE HARLEY WAY. ™ www.hdfsi.com GET TO KNOW THE HDFS FAMILY: Harley-Davidson Credit Corp. Harley-Davidson Insurance Harley-Davidson® Extended Service Plan Harley-Davidson™ Debt Protection Plan Harley-Davidson® Guaranteed Asset Protection (GAP) Plan Harley-Davidson® Visa® Harley-Davidson® Planned Maintenance Program Harley-Davidson® Gift Card ASK YOUR DEALER FOR MORE INFORMATION. Not all products available in all states. Harley-Davidson Insurance, underwritten and managed by The Progressive Group of Insurance Companies, is insurance designed specifically...
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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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...Introduction “Harley-Davidson: At Last” case study discusses Harley-Davidson‘s marketing mistakes and successes when the company was faced with the invasion of Honda and other Japanese manufacturers in the 1960s. Harley-Davidson did not consider Honda’s lightweight motorcycles as a threat since they believed that people buy mostly heavyweight motorcycles not for transportation, but rather as sport vehicles for leisure time use. Unfortunately for Harley-Davidson, Honda was able to penetrate the American market successfully by offering lower prices and reliable motorcycles. The latter attracted a new segment of customers with different needs and demands. Consequently, Harley-Davidson witnessed a fall in the market share from 70% in the 60s to 5% in the 80s. Another reason for this drastic decline of market share was the bad quality of the newly produced motorcycles, as well as the brand image that was linked to the pot smoking, tattoo covered, and beer drinking motorcycle gangs. This paper will discuss the marketing strategy Harley-Davidson company has implemented to regain its market share and what the company is doing today to deliver high levels of customer value. Furthermore, the paper will shed some light on how value is managed through the marketing mix, as well as how the company has positioned itself in the market relative to competitors. Company Overview There is one U.S. based motorcycle manufacturer that stands out as a world leader in the motorcycle industry...
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...market in terms of size and growth. More women are riding motorcycles today than ever before. This trend is on the increase, as was shown in the video. Harley Davidson market value has grown from 6.4% in 1990 to 10% presently. More women today are earning higher income and are empowered by this fact. This has brought about a sense of independence and freedom. More women are buying motorcycles today to fill their psychological need of freedom and to express their individualism. Harley Davidson has recognized the women motorcycle market as a good growth opportunity for the company and is targeting this segment by building customized motorcycles with women in mind and also by advertising in some women magazines. Discuss why the woman motorcyclist market is a good strategic fit with Harley Davidson. The women motorcyclist market is a good fit with Harley Davison because more and more women are buying motorcycle to express their independence and their adventurous side. Today, women rider constitutes about 12% of Harley Davidson sales. This still leaves a potential growth opportunity for the company. There is no need to make expensive changes or to build motorcycles specifically for women. Discuss specific tactics Harley Davidson utilizes to attract women motorcyclist; How these tactics differ from attracting men. Harley Davidson recognizes the growth potential in marketing to women and has taken a number of steps to attract women. One of the tactics that they utilize in attracting...
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...------------------------------------------------- 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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...Future Harley-Davidson Report MKTG 445 Dr. Mattson September 29, 2004 Jason Conlon Daniel Adkins Eric Huffman Kyle Hahn Table of Contents Introduction Page 3 Global Competition Page 3 New Competition Page 5 Competitive Remakes and Accessories Page 7 Motorcycle Buyers Page 9 Motorcycle Company Websites Page 11 Conclusion Page 13 Works Cited Page 14 Introduction Over the past few years, Harley Davidson has had to make numerous changes to remain competitive. The first thing we will take a look at is global competition. Harley Davidson’s increasing demand overseas has caused many changes over the past few years. The second thing we will take a look at is new competition. The demographics of the nation have been changing, due to the aging of the “baby boomers,” and Harley has to make changes in order to keep up with the competition of the market. New competition ranges for sport bikes to other competing cruiser models. The third thing we will look at is competitive remakes and accessories. The competition for Harley is on the rise due to the high interest in custom motorcycles and cheaper accessories. The fourth thing we will take a look at is motorcycle buyer’s demographics. The market is ever changing and it is important to look at how Harley is adapting to these changes. The final thing we will address is how the...
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...H-D of Korea, Yongin Harley-Davidson® INDIA DEALER PROSPECT HANDBOOK 1 CONTENTS • INTRODUCTION • THE DREAM • THE MISSION • THE PEOPLE • OUR VALUES • THE BUSINESS • THE ORGANIZATION • THE FIGURES • THE PRODUCTS • HARLEY-DAVIDSON® MOTORCYCLES • GENUINE MOTOR PARTS & MOTOR ACCESSORIES • MOTORCLOTHES® RANGE • HARLEY-DAVIDSON FINANCIAL SERVICES • DO YOU THINK YOU’VE GOT WHAT IT TAKES? • WHAT YOU CAN EXPECT FROM US • WHAT WE EXPECT FROM YOU • THE APPOINTMENT PROCESS • FREQUENTLY ASKED QUESTIONS Disclaimer This document is a working handbook for prospective dealer candidates. Its purpose is to ensure that the Harley-Davidson is suitably represented within the Asia-Pacific region. The information provided is intended solely for the purpose of selecting the right partners for our company. Any investment and expenditure made by the applicant in anticipation of Harley-Davidson entering into a Motorcycle Dealer Contract are at the applicant’s sole risk and do not in any way obligate Harley-Davidson. Products and services described within this book may vary by market. HARLEY-DAVIDSON INDIA – DEALER PROSPECT HANDBOOK 2 INTRODUCTION Dear Prospect, Thank you for your interest in joining our world famous dealer network and for delivering our unique brand experience. And that’s what Harley-Davidson is all about – living an experience. But it also has a great business story behind it. Did you know that… • Harley-Davidson ships more than 300,000 motorcycles a year to...
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...9-600-006 REV: JANUARY 22, 2003 ROBERT D. AUSTIN DEBORAH SOLE MARK J. COTTELEER Harley Davidson Motor Company: Enterprise Software Selection We were in McDonald’s having our initial SiL’K planning meeting when a gunfight erupted in the parking lot. Bullets started flying through the restaurant. Someone said, ‘Everyone down, lock the doors’. We all hid under the table. I’m lying on the floor looking at Dave and Pat—I’m thinking, Holy Smokes, this is unreal. It was just incredible—a real bonding experience! —Garry Berryman, Vice President, Materials Management David Cotteleer, Information Systems (IS) Manager of the Supplier Information Link (SiL’K) project, smiled as he recalled the terror and subsequent camaraderie that had grown out of that unusual beginning. It had set the tone for the partnership that developed between Berryman, Pat Davidson, Manager of Purchasing, Planning and Control, and himself, as they worked collaboratively to develop the specifications for an integrated procurement system to support the new Supply Management Strategy (SMS). Now he and the SiL’K project team were gathered in their “war room” on the top floor of the Harley-Davidson Corporate Headquarters to face another critical moment in the project’s history. After three hectic months of meeting potential software suppliers, reviewing documentation, and evaluating software packages, the SiL’K team had to make a decision. Who should they choose as their supplier and partner...
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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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