Premium Essay

Harley

In: Business and Management

Submitted By luna16queen
Words 307
Pages 2
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 since its 1989 IPO.

Fourth, Harley has demonstrated a consistent skill to innovate, allowing the company to be in business for over one hundred years. For example, in 2005 Harley launched a small inexpensive bike called the “Street-Rod,” which was a radically new bike that attracted a new generation of hogheads.[2]

Fifth, the management style of leading by example is a strength for...

Similar Documents

Premium Essay

Harley

...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......

Words: 6058 - Pages: 25

Premium Essay

Harley

...WHAT IS THE REASON OF HARLEY DAVIDSON GOING THROUGH ROUGH YEARS IN 80'S? AMF was known for its leaking engines, unreliable performance, and poor customer service. Taken together, AMF’s heavy handed management style, labor hostility and the Milwaukee strike, all contributed to the decline in the quality of Harley Davidson motorcycles. WHILE HD DEALING WITH DIFFICULTIES, WHAT KIND OF CHANGES CONTINUED IN THE INDUSTRY? While Harley bikes experienced growing quality problems, Japanese bike manufacturers were steadily expanding their reach into the high end motorcycle market. As a result, Harley was selling more motorcycles than ever before, but at the same time, it was losing market share to better quality and less expensive Japanese machines; between 1973 and 1981, Harley’s share in the super heavy segment of industry, the company’s strongest market dropped from 78 % to 30 % and a year later, its share in the heavy segment fell below Honda’s , 30 % against 34%. It was at this point that AMF management decided to put its troubled Harley Davidson up for sale. 1982-83 and 1984 were rough years because Japanese manufacturers like Kawasaki, Suzuki and Honda began selling in the US in increasing numbers and were able to build bigger bikes at lower costs. And this began to tell on Harley-Davidson's balance sheet. The company’s market share in the United States had fallen to 3 percent, primarily because its products were unreliable and had poorer performance relative to......

Words: 1582 - Pages: 7

Premium Essay

Harley

...Harley-Davidson puts as much emphasis on the consistency of quality as it does on the level of quality in order to stay competitive in the market. At one point Harley’s had a bad reputation because their bikes were expensive and inferior in performance, handling, and quality compared to Japanese motorcycles. Harley’s sales and quality had declined, and the company almost went bankrupt. The "Harley-Davidson" name was even mocked as "Hardly Drivable". In order to compete with the Japanese they revamped the companies’ angle and began producing bikes more like the ones the classics and offered the option to customize and personalize. Harley-Davidson uses customer service to differentiate its motorcycle products by allowing customers to have bikes custom built with accessories and paint designs. Harley only accepts a small number of orders to customize each year because it’s like building a new model every time. Buyers also have the option to purchase limited-edition motorcycles. I think the Harley-Davidson Museum might plays a role in influencing how consumers perceive the company and its products by featuring products from Harley-Davidson's past as well as what’s in store for the future. Samples of the bikes, boats, golf carts, and snowmobiles that the company use to manufacture exhibit Harley’s past. While the museum also gives a look ahead by highlighting Harley-Davidson's latest technology, its newest engines, and the inner workings of its new-product development......

Words: 266 - Pages: 2

Premium Essay

Harley

...Harley Case What core competencies and value propositions does company have that builds and promotes brand community? When I think of Harley Davidson, I think of a tough group of individuals that really love riding their motorcycles. For some it may be a form of transportation, but for most I think it is just pure pleasure. The freedom of the road and the connection with other riders is most important. I can hardly think of a time when I have seen just a single Harley on the road. As someone who does not own a Harley or any other motorcycle, I can understand the fascination behind the brand besides the beauty of the actual machine. Going through the readings and watching the video, it seems pretty evident that this same feeling that I have about the riders, they themselves are living it and sharing the mutual feeling within their community directly. That is a big intangible value proposition. Since the riders share a big sense of community, the company allows the word to spread itself within their communities. Throughout the world, the message about Harley is the same although the method of representation may be different due to cultural/geographical differences. There is a sense of consistency about who owns a Harley and why. H.O.Gs are definitely members of a pool and a good example of their connection web is the Harley museum in which they can build interpersonal connections through the Rivet Wall (where individuals can commission and/or read inscriptions of......

Words: 652 - Pages: 3

Premium Essay

Harley

...If you were CEO of Harley- Davidson, how would you compare the advantages and the dis advantages of using exports , joint ventures, and foreign subsidiaries as ways of expanding international sales? a. If I were the CEO of Harley- Davidson, I see only upsides from joint ventures and foreign subsidiaries as types of insourcing. I say this due to the fact that the countries like Germany and Japan each had a helpful hand in the production of our motorcycles. That being said co ownership by both the US and these other countries would be fine as long as regulated and that main ownership remained stateside in the US. The disadvantage I do see is the notion of a strategic alliance given our company past experience with that practice in the 1950’s. During that time period we didn’t create lightweight motorcycles and left that to the British and Japanese, this left us with complete control over the heavyweight and super heavy weight motorcycles market. If we would have created a strategic alliance with these companies we would then be creating more competition for ourselves and who knows the consumers that would jump ship due to brand alliance. 2. In America, Harley has shifted the positioning of its products away from simply motorcycles and more towards being status symbols of a particular lifestyle. What are the implications of cultural factors for positioning in other countries that Harley has targeted......

Words: 942 - Pages: 4

Premium Essay

Harley

...Harley-Davidson Today, Harley Davidson is one of the best known motorcycles in the world. It had more than 100 firms producing motorcycles in the US when it was founded and was the only remaining American manufacturer by the 1950s. This period of dominance was short lived by 10 years when Honda began selling in the US and proved to be a fierce competitor for Harley-Davidson. After 20 or so years of belonging to the American Machine and Foundry Co, Harley was bought by a group of 13 managers in an attempt to get back to detail. The new owners, and former CEO, wanted to get to know the business the customer and to pay attention to detail. With this focus, they would then be able to increase quality and improve service to customers and dealers. The advantages and disadvantages of using joint ventures, and foreign subsidiaries as ways of expanding international sales helped and hurt Harley-Davidson. With researching the market, management learned that motorcycle enthusiasts rode motorcycles much differently in other countries thus forcing them to accommodate to different riding styles. Not only would this attract international buyers, but it would also give the US buyers more options to choose from when looking for a motorcycle. Using joint ventures, like with China’s Zongshen Motorcycle Group, Harley Davidson was able to get their name in with the company that makes more than 4 million small engines motorcycles annually. However, with the riding restrictions in China,......

Words: 258 - Pages: 2

Premium Essay

Harley

...Harley Davidson Proposal The Objective: Support Harley Davidson build Benefits & Privileges for HOG MEMBERS The Mechanics: * Target Pubs/Lounges which HOG members frequent * Ensure Special amenities like Parking/ Exclusive Corners/ Discounts * Engage in tie-ups which will : * Compliment Lifestyle preferences * Build affinity & engagement * Drive customer satisfaction & loyalty Locations: City | Number of VENUES | Bombay | 4 | Pune | 4 | Bangalore | 4 | Hyderabad | 4 | Kochi | 4 | Chandigarh | 4 | Ahmedabad | 4 | Chennai | 4 | Roles and Responsibilities: Deliverables offered to Harley Davidson by Pubs: * The Harley Corner: A dedicated corner where the Harley Davidson merchandise & collaterals will come up * This corner will be available to Harley members provided they make prior reservation before 6.00 pm same day * Discounts: The Harley members will be eligible for a discount on the bill on flashing their HOG cards and intimating before the bill has been made * Parking space: There will be dedicated parking space for their bike and a small board indicative of Harley Owners Parking Deliverables offered by Harley-Davidson India: * Communication: * Harley will send mailer containing complete details of the special deal to all their customers, atleast once a month * Have a post about the offers on their Facebook page atleast twice a month * Exposure & Visibility to the Pubs: * Display a......

Words: 466 - Pages: 2

Premium Essay

Harley

...If I was CEO of Harley-Davidson, I would have to consider the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales. Exports can be very advantageous in increasing sales through a larger diversity and number of customers and hence raising profit, gaining global market shares, and increasing the potential to expand the company into foreign lands. However, it is possible that exporting the motorcycles could be more costly since it takes more time to develop such markets which might strain the finances of Harley-Davidson. Also, the products may have to be modified due to the country the motorcycles are being sent to, and I would have to take a financial risk that may be more time consuming and complicated. As CEO, I believe that Harley-Davidson will take the risk and export our products, as this will improve our sales overall and expand our business. Joint ventures are a present opportunity to grow and gain stability because it reduces risk through capital and resource sharing. In addition, joint ventures are yet another way for our company to expand its sales, increase its market, and possibly improve technology through another party. They can be disadvantageous if we are not on the same page as the other party, for example, if we don’t set a common goal. In a foreign setting, we would have to adapt to the culture and make some changes due to that. In all, the biggest cause to make joint ventures......

Words: 336 - Pages: 2

Premium Essay

Harley Davidson

...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......

Words: 2574 - Pages: 11

Premium Essay

Harley Davidson

...I think of strength, the willingness to fight no matter what, and above all being muscle toned, risky, loud and obnoxious badass on a bike. This isn’t exactly what Harley-Davidson wanted to portray, but it’s what made them into the company they are today. Harley-Davidson was started by no other than William S. Harley and Arthur and Walter Davidson, a few friends fascinated by motors and bikes in a rural part of Milwaukee, Wisconsin. The first blueprint sketched by William S. Harley was in early 1901, but the first actual sale of a completed bike wasn’t till late 1906. With nothing more than a small machine shop, a handful of old motors, and a few bicycles the friends started on their road to fame and fortune. They wanted to manufacturer these modified bicycles to the public in hopes they would make money, the main driving force behind any entrepreneur back then and now. Beginning its journey through sales in World War I and II the Harley brand was thrust onto the scene of racing and leisure riding from veterans and active duty members to civilians and celebrities. Being one of the only manufacturers to survive not only the war, but also the Great Depression, Harley-Davidson had its fair share of ups and downs. The image of Harley started with the production of the “F-Head” motor, known as the workhorse of the Harley-Davidson Motorcycle, and has since been a leading innovator in the market of motorcycles today with more than 6 different engine types, 5 main body styles, and......

Words: 1291 - Pages: 6

Premium Essay

Harley Davidson

...Harley Davidson May 17, 2011 Introduction Harley Davidson is a worldwide known motorcycle manufacturing company. The company was started in 1903 when two gentlemen named Bill Harley and Arthur Walter Davidson from Milwaukee, Wisconsin built a one-cylinder motorcycle. They created a reputation for beautiful and reliable motorcycles and with that combination their company has been able to survive for over 100 years. Harley Davidson was incorporated in 1981 and in 1986 it became a publicly held company. Harley Davidson now operates in two segments. They have the motorcycle and a related products segment that sells the motorcycles and in addition sells Harley Davidson merchandise such as t-shirts, leather jackets, and other riding gear. This segment Which segment?? of Harley does sales in North America, Europe/Middle East/Africa, Asia/Pacific and Latin America. Harley also has the financial segment that provides financing insurance to Harley Davidson dealers and to the retail customers. The financial segment is only offered in the United States and Canada. (pg. 6) In this report we are going to look at the Harley Davidson Corporation and discuss their financial performance in 2010. For a better understanding on how the corporation performed, we will also take a look at the 2009 financial statements and use it as a reference to show how the company improved or declined in 2010. We are going to......

Words: 2951 - Pages: 12

Premium Essay

Harley Davidson

...Today, Harley Davidson motorcycles are a household name, but it hasn’t always been that way. It began way back in 1901, when a young man named William S. Harley had a vision for attaching an engine to a bicycle. William had a friend named Arthur Davidson who embraced his concept. Together, they began working endless hours in a small wooden shed, with the words “Harley Davidson” scrawled on the door. By 1903, they rolled out the first production Harley Davidson motorcycle. The legendary “Bar and Shield” logo became the defining symbol of Harley Davidson motorcycles in 1910. The logo is representative of strength and ruggedness. The design was patented in 1911 and continues to be used today. In 1920, motorcycle racing legend, Leslie “Red” Parkhurst, broke numerous speed records on a Harley Davidson racing motorcycle. Each time Parkhurst won a race, he would carry a pig on a victory lap and it was during this time the term “hog” became associated with Harley Davidson motorcycles. During World War I nearly half of the Harley Davidson motorcycles produced were sold to the United States Army. Throughout the 1920s, major changes took place to the design. The most notable was the change in the gas tank, which was switched to the now infamous teardrop shape. In 1928, Harley Davidson introduced the first twin-cam engine and front wheel brakes. These modifications allowed Harley Davidson motorcycles to reach speeds in excess of 85 mph. Throughout the 1930s, Harley......

Words: 846 - Pages: 4

Free Essay

Harley Davidson

...Stock Analysis Report: Harley Davidson [pic] Chad Combs Finance 824 6/1/2004 TABLE OF CONTENTS I. Summary of Recommendation – Page 1 II. Brief Company Overview – Pages 1-2 III. Economic Analysis – Pages 2-5 IV. Industry Analysis – Pages 5-6 V. Growth Drivers/Catalysts/Positive Issues – Pages 6-8 VI. Risks/Concerns – Pages 8-10 VII. Sources of Growth – Pages 10-15 VIII. Financials – Pages 15-19 IX. Valuation – Pages 19-21 X. Conclusion – Pages 22-23 Summary of Recommendation Recommendation: Market-weight Reasoning: Increasing Market Demand: The motorcycle market is growing both domestically and internationally. Harley is well poised to take advantage of international opportunities that may present themselves. Draining Affect of Excess Cash: Harley is cash rich firm with very little debt. However Harley has no idea what to do with their extra money. They need to find strategic measures to determine how to invest the cash for that it is obtaining a smaller rate of return (2%) compared to the ROE of its core business (29%). This excess cash is diluting the returns of the firm. Revenue Should Increase: Harley is committed to expanding and as long as the increases to production will give them overall increases...

Words: 6731 - Pages: 27

Premium Essay

Harley Davidson

...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......

Words: 1802 - Pages: 8

Premium Essay

Harley Davdson

...Doing Business With Harley-Davidson COMPANY HISTORY AND BACKGROUND WHO IS HARLEY-DAVIDSON? The history of Harley-Davidson began in 1903, in a 10' x 15' shed located in the Davidson family's Milwaukee backyard. The Davidson brothers - William D., Walter, and Arthur - and William S. Harley crafted their first motorcycle using the best tools they had available - mostly their hands and their ingenuity. Since that time Harley-Davidson has learned many lessons on how to operate a business. We are focused on providing our customers with not just a quality product, but also an overall experience. Our mission statement is as follows: WE FULFILL DREAMS THROUGH THE EXPERIENCES 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. Harley-Davidson also lives by a Business Code of Conduct that is driven by a value system that promotes honesty, integrity and personal growth in all of our dealings with stakeholders. Our values are the rules by which we operate. TELL THE TRUTH BE FAIR KEEP YOUR PROMISES RESPECT THE INDIVIDUAL ENCOURAGE INTELLECTUAL CURIOSITY At Harley-Davidson, we are equally committed to a corporate vision that mandates how we run our business. Within this vision we emphasize the relationships that we deem crucial to our success, including our relationships with customers and suppliers. Our vision states: HARLEY-DAVIDSON, INC. IS AN ACTION-ORIENTED,......

Words: 538 - Pages: 3