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Harley Davidson: Harley Style and Strategy Have Global Reach

PRESENTED BY :Avinash Yadav Dheeraj Sarda Hitesh Chawla Vishal Kashyap

Agenda

Harley Davidson Overview


Case Study Analysis Review Questions of Case Study

Harley Davidson Overview

Harley Davidson Overview


Established in 1903 by William Harley, Walter, William and Arthur Davidson, in Milwaukee, United States of America. Manufacturing Heavyweight custom and touring motorcycles and related products. Harley is the only major American manufacturer of heavyweight Motorcycles. WWI and WWII encouraged growth for the company due to the militaries demand for HDs economical motorcycles. After WWII, the improved American economy, and higher demands for HD bikes encouraged the company to expand its efforts and purchases additional manufacturing capacity.

Case Study Analysis

Case Study Analysis

Started in 1903. Till 1950, Harley is the only remaining American manufacture in Motorcycles. In year 1960, HD takeover an Italian motorcycle firm.

In 1969, American Machine and Foundry Co. (AMF) took over


Harley and increased their production. Rapid expansions leads to poor quality, which makes an entry for

Japanese motorcycle company began to takeover the market.

Case Study Analysis

In 1981, Harley Davidson was bought by 13 managers. Management kept the Harley style and focus on company strength.

In 1983, H.O.G. membership soared to more than 750,000

members till 2003.


Till 1992, company improves quality and expansion is done. In 1996, approximately 100,000 per year.

From 1997 to 2001, increase in production is seen.

Case Study Analysis

Harley bikes were sold as a aging baby boomers, but they want to sell that bike as sense of adventure.

From 1980s, company started selling their product in


International market. Advertisements were made on the basis of the culture of that particular country. Harley also started selling their accessories for riders protection. In 2002, Harley had 30% market share in worldwide, where as in United States have the largest market share.

Case Study Analysis

In Europe Harley ranked sixth with 6.6% market share. Largest market share for year 2000 - 2002. (21.3% market share)

Marketing policies are changed according to the countrys


culture. Symbol of prestige in Japan.

Deals in Women bikes too, with a market share of 9% - 11%


every year. Consecutive performance of 17 years of company shows a bright future ahead.

Review Questions of Case Study

Describe Harley-Davidson's international business strategy. Would you consider Harley to be a multinational corporation? Main International business strategy is to bring American dream overseas. To capture the global market, they have created different marketing strategies within different cultures to appeal to potential customers. Harley has influenced German and Japanese cultures with their products and can definitely be considered a multinational corporation. They not only have major influences in these two countries, but Harley also has a joint venture with Porsche in Germany to further expand their horizons in the industry

If you were Harley's top management, in which regions of the world would you consider expanding?

Every one on this planet want Harley, they can expand their business in any country. Highly beneficial to expand in fast-paced society, who wants faster and better transportation. They can target to the cities with high population, where motorcycle is handy.

Not only will they be traveling faster, but they will also be doing it the American style.

Evaluate Harley-Davidson's decision not to produce overseas. What would be the advantages of overseas production? What problems might the company encounter if it does manufacture abroad?

Promote the American Dreams Overseas. Made in USA label Advantage of Overseas production are: Cheap raw material Overseas than in USA No Shipping cost Shorter Turnover period (No Shipping time) Problems of Overseas production are: Follow overseas country laws Cultural Differences (language, etc) Environmental Challenges (Availability of Material)

Raw

Harley appears to have moved from providing a product (motorcycles) to providing a service (a way of life). Discuss how this movement from products to services may have affected the company.

Teerlink wanted to represent the sense of adventure they get from the bikes They werent just motorcycles, but a way of life, the American life. H.O.G (Harley Owner Group) was created to joint all the Harley owners and can ride together, like a family. Placing more value onto their products would appeal more to potential customers, and thus would help in expanding their marketing horizons.

Increase in number of customers.