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HARLEY-DAVIDSON
Presented by Md. Atif Akhtar Mohd. Kamran
Introduction It’s a story no one on earth could have made up. Let have a look at the journey of the greatest companies on the planet…… “Harley Davidson”. Harleys are, just like fun stuff for people with money and appearance. So, “rich” customers rule the market.Harleys aren’t the fastest and manageable cycles, riding a Harley is not at all comparable with riding any other bike…….
History speaks 1901 William S. Harley, age 21, completes a
blueprint drawing. 1903 William S. Harley and Arthur Davidson
make available to the public the first production Harley-Davidson motorcycle.
1905 Harley-Davidson motorcycle wins a 15 mile race in Chicago with a time of 19:02.
1918 almost all the Harley-Davidson motorcycles produced are sold for used by the U.S. military in world war 1.
Continue…
1920 Harley-Davidson is the largest motorcycle manufacturer in the world.
1922 Harley-Davidson riders sweep all eight National championship races.
1933 an art deco “eagle” design is panted on all gas tanks.
1936 introduces ‘knuckle head’. 1941 production of civilian motorcycles is almost entirely
suspended in favor of military production. 1952 launched sportster. 1969 HD mergers with the American machine and foundry
company(AMF), a long time producer of leisure products. 1971 A new class of motorcycle, the cruiser, is born .
Continue…
1981 13 executives leveraged buyout (LBO). Struggled under heavy loans.
1982 the materials as needed (MAN) application is introduced to production. This dramatically lowers the production costs and improves quality.
1992 joint venture with Buell. 2003 more then 250,000 people come to
Milwaukee for the final stop of open road tour and the HD 100th anniversary celebration and party.
Competition in Global motorcycle industry
Rivalry criteria- performance, styling, breadth of product line, image, reputation, quality of after sales services, price.
Difficulty U.S. & European Manufacturers had in attracting price sensitive European market.
Regulations and legal challenges European parliament and European
countries reduce pollutant by 60% after 2003 & more 60% after 2006.
U.S. producer are subject to certification by environmental protection agency (EPA).
California air resource board (CARB)- new tailpipe emission standards.
safety standards- NHTSA
Harley Davidson’s strategy for competing in motorcycle industry After LBO company felt need to rebuilt from ground Products were unreliable and had poorer performance
relative to less expensive Japanese motorcycle. management realized that a strong alliance to Harley
brand by many bikers was the only strength. Promotions at motorcycle rallies. Improving dealer network. Pilot program-clean and attractive showrooms to showcase
Harley’s improved motorcycle and display apparel & other merchandise.
Harley owners groups (HOG) from 1983- loyal clubs to socialize and ride with bike owners.
HOG also organized rides, raised money for charities HOG membership started with 33000 in 1983 and currently
over 1 million members.
Differentiation focus
Differentiation
Cost focus Cost leadership
High
Low
Deg
ree o
f p
rod
ucti
on
d
iffere
nti
ati
on
narrow Broad
Scope of Business Activities
The SWOT analysisStrengths Domestic & international market share Financial status Product quality Strong brand loyalty and HOGs Strong distribution networkWeaknesses Harley Davidson does not emphasize price in its product.
Opportunities The international heavy weight market is growing and is
almost as the U.S. heavy weight market. Alliances with other automobile manufactures are possible. Market share increasing in Europe and Asia for the two years. Increasing demand in U.S. markets for bikes. Customer value quality parts.
Swot continued….Threats
Harley ongoing capacity restraints caused a shortages supply and a loss in domestic market share in recent years.
Harley average buying age is 46 years old and increasing. The European Union’s motorcycles noise standard are
more stringent then those of environmental protection agencies in the U.S. and increases environmental stand.
Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.
Shift in buyer need and testes. Customer loyalty in European and Asian countries. Cost could become expensive from international
importing- for example in India 60% tax on total cost for importing an automobile and 30% road tax.
And the great story on Earth continues it’s majestic journey………….
Thank you