Briefly Information of

Company
Harley Davidson is one of the best
motorcycle producer in world. This company
not only produce motorcycle but also produce
boat, t-shirt, bag, leather Jacket ,helmet and
kind accessories, etc. Thanks to selection
HD ,their customers life style obvious that
show their freedom.

History of HD
1901William S. Harley, age 21, completes a blueprint drawing of an
engine designed to fit into a bicycle.
1903 William S. Harley & Arthur Davidson (Walter)
1909 First V-twin powered bikes, it became most enduring icons of
Harley Davidson history.
1917 1/3 rd of the bikes were sold to the U.S military, at last 20,000
HD bikes were used in World War I (1918).
1920 HD dealerships spread across 74 countries.
1930Bill Davidson, Jr. wins the Jack Pine endurance contest with 997
points of 1,000.

History of HD
1943Harley-Davidson receives the first of its four Army-Navy
"E" Awards for excellence in wartime production.
1955Harley-Davidson produces almost 60,000 WLA models
during the war for military use.
1987 Entered into American & New York stock exchanges.
1998A new assembly facility opens in Manaus, Brazil, the first
operations outside of the U.S.
2001 Two big plants constructed in Milwaukee & Kansas cities.

History of HD
2004HD recorded its 19th consecutive year of record earnings
2009 Harley-Davidson announces expansion into India.
2010The XL Forty-Eight is introduced, recalling the raw,
custom Sporters of earlier days.
Harley is the only major American Manufacturer of heavy weight
motor cycles.
Have more than 15,000 employees.

Product extensions

Motor Cycles

Bike accessories

Buell motor cycles: wholly owned subsidiary of

Harley by 2003 (closed now)

Brand extensions

Merchandise
Helmet
Boats
Clothes (Jackets)
Mugs
Collectibles.
Lighter
Watch
Beer
Bars

Harley - Davidson presents two new models this

year one for men and one for women ...

Mission

We fulfill dreams through the experience of

motorcycling,
by providing to motorcyclists and to the
general public an expanding line of
motorcycles, branded products and services

PROPOSED MISSION
Constantly renewing
ourselves and offer our
customers the best
motorcycle experience
without compromising
the quality.To be branded
as the best motorcycle
available in the world.

Visi
on
HD, is an action-oriented,
international company, a leader in its
commitment to continuously improve
our mutually beneficial relationships
with stakeholders (customers,
suppliers, employees, shareholders,

PROPOSED VISION

Always be competitive and continuously improving our

customer satisfaction, increasing dynamic, diverse and global
market The best quality motorcycle, motorcycle products
and financial services will be provided world wide is the
commitment of Harley Davidson. The total team effort of
Harley Davidson employees is devoted to full filling dreams
of customers and we believe there is not a motorcycle riding
experience like Harley Davidson.

INTENSIVE STRATEGIES
Market Penetration

Product Development

Market Development

Market Penetration

Get some more market share from the existing market(U.S,

U.K, and Japan)
Use more marketing techniques like advertising
HD has a good brand name so its easy for them to eat up the
competitor market share
Competition is high in this segment mostly in U.S so good
choice market penetration
Expand the HOG (Harley Owners Group) to Asian countries
If the company can provide the customer satisfaction that they
are providing to the U.S customers to the Asian customers they
can increase the sales

Product Development

Younger generation and female are now

coming to this segment so expand the motor
cycle segments to younger generation and
females.

In Europe they can increase or expand the

Buells market share by introducing new
motorcycles.

Market Development

Harley-Davidson can bring in their vehicle to Asian

countries (India, China), because these countries have a
high population and the market potential is also high.

The cost to bring in the old vehicles (old product) to

India is so much difficult:
- There are so much environmental laws
-Taxes are problems
-Levis are high in India

So starting new plant in India can solve this problem.

Negotiations with the Government can solve these
problems

CURRENT
INTEGRATION
STRATEGIES
Vertical Integration

Horizontal
Diversification

Vertical Integration
HD uses both backward and forward integration
More than 750 suppliers of g&s are used in the design
and manufacture of motorcycles, parts and accessories
The control of inputs is a necessary part of just-in-time
manufacturing
HD has been backward integrating to maintain control
over the quality of suppliers
HD owns most of its distributors
Distributing completed motorcycles throughout the world
HD is responsible for the delivery of parts and accessories

Horizontal Diversification

HD has acquired Buell Motorcycles and

Eaglemark Financial Services, in order to provide
new product lines for their customers
Buell was acquired in order to be able to provide
customers with a V-twin powered Sport motorcycle
This type of motorcycle has become increasingly
popular with the younger and European riders
Eaglemark provides motorcycle financing,
motorcycle casualty insurance and extended service
contracts for HD and Buell motorcycles
They also issue the HD Chrome VISA Card,
allowing riders and customers to show their brand
loyalty

Yasemin
You
irin

might be a
biker if

You the
cant
remember
yo
You pull your bike into
motel
room and
You takeYou
You
your
carry
kidsat
a
for
picture
a ride
of
on
your
your
b
kids
names
or
birthda
wave
bikers
even
whe
You have put motorcycle par
but you can remember
Harley-Davidson made
Knucklehead, Panhead
Evolution, and Twin Ca

ORGANIZATIONAL CHART

MANAGEMENT

Excellent Corporate Governance has been

a long standing business practice at HD,
because it makes good business sense

The HD Management and Board of

Directors is composed of accomplished
leaders from a range of industries who meet
regularly to review Company objectives and
plan for future growth

These individuals draw on their diverse

backgrounds and experiences

They are proud HD enthusiasts, and they

work to ensure that the decisions made by
HD promote fairness, financial transparency
and accountability to all our shareholders

EXTERNAL FORCES

Economic Forces

Technological Forces

Social, cultural, demographic, and natural

environment forces

Political, governmental and legal forces

Competitive Forces

Economic Forces
HD is the largest manufacturer of heavyweight
motorcycles in the world by market share, capturing half
the U.S. market and a third of the global market
As a luxury good, HD competes primarily on design and
quality, rather than price, which keeps margins high; gross
margin in 2011 is projected to be approximately 34%
Harley Davidson announces a 73.5% increase in income
in year-ago comparisons, totaling $119.3 million for the
first quarter of 2011 Increases in income were driven by a
1.5% increase in revenue, totaling $1.22 billion for 2011

Technological Forces

Computer-based inventory control systems could

play a role in managing motorcycle inventories
Technology also impacts design
Modern motorcycles also are relatively free of oil
leaks, vibration, and are more comfortable than those
of the past
Communication across continents is easier and
cheaper than ever before because of computer-based
inventory control systems

Social, cultural, demographic,

and natural environment forces

As aging couples with excess income are Harley Davidsons target

market, the aging population growth and income growth are good
signs for the company
The U.S. veteran population has increased by 1.1% , Veterans tend
to be motorcycle owners so sign of market segment growth for Harley
Motorcycles are mostly used during warmer months which are
generally March through August in the northern United States and
Canada so the motorcycles riders intend not to buy motorcycles until
they can ride them.
The United States has the greatest income inequality among
developed nations ,This indicates a large (growing) potential market
size for Harley Davidson as it is the leader in the Motorcycle market
with about 50% market
The changes in the lifestyle of the majority of youth population the
world-over has resulted in an enhanced business for HD

Political, governmental
and
legal
forces
The Environmental Protection Agency (EPA) regulates

automobile and motorcycle emissions

Future revisions could negatively impact the motorcycle
industry. Steel prices increased 57% and aluminum increased
by 24%, so that the cost increases on to consumers, thus
raising the price of the product
The environmental protection laws create on additional
pressure for companies
Human resource legislation mostly in favour of the
employees also does have an impact on the profitability of the
company
The internationalization of the business of the company is
concerned the moving of production facilities to those
locations

Competitive Forces

Its main competitors are Honda and Yamaha based on their

world-wide market share
Harleys competitors are more diversified, they are less
vulnerable to industry changes
Honda and Yamaha also offer products that sell well in the
international markets compared to Harley
Harley products are more expensive than its competitors, but
are known for service and saleability
Touring bikes have increased in popularity with each year.
Victory, Honda, Suzuki, and Harley have expanded their
touring line of motorcycles to cater to the aging market.
Harley offers eight variations of the touring motorcycle

INTERNAL FORCES

To determine HDs strengths and weaknesses, an

internal assessment is required
Harley only has 7.7% of European market share (the
second largest motorcycle market in the world), and
25.3%of the Asia/Pacific region
Harley-Davidsons strengths are in the U.S. market,
as 80% of Harleys net revenue comes from U.S.
sales
Harley was viewed as sub-par when compared to
British motorcycles
Harley has a reputation for style and quality

INTERNAL FORCES(cont)

Harley-Davidson also introduced water-cooled

engines, fuel injection, and catalytic converters to
improve exhaust emissions
Harleys strength in this area is largely due to its
marketing abilities in the U.S. market
Harley customers are extremely loyal to their brand
and 90% of Harley owners intend to purchase another
Harley
Management information systems could be used to
more effectively manage inventory at Harley .This is
currently one of Harley-Davidsons few internal
weaknesses

MICHEAL PORTER ANALYSIS

Five Forces Analysis
Forces

Strategic Significance

Internal Rivalry

LOW-MODERATE

Threat of New Entrants

LOW

Threat of Substitutes
Products

LOW-MODERATE

Bargaining Power of Buyers

LOW

Bargaining Power of
Supplier

HIGH

Market share and financial analysis

BALANCE SHEET

HD CASH FLOW

MARKET SHARE

Competition in the motorcycle industry consists of

only a handful of producers worldwide.
The Japanese producers Honda, Yamaha, Kawasaki,
and Suzuki are producing a full line of motorcycles
ranging from scooters to heavyweights, and together
control the largest share of the market
Motorcycles are sold internationally, 3 main
geographic markets North America, Asia, and Europe
The largest is the North American Market (USA
and Canada account for about 60% of this market)
accounting for 60% of worldwide motorcycle sales

MARKET SHARE (cont)

Most Asians consider motorcycles as a basic means

of transportation.

Major target areas include China, Korea, Taiwan

and Vietnam.

The European Market is another market with great

potentials since Europeans have a higher disposable
income and enjoy a higher standard of living

Eastern Europe is not offering a good deal mainly

because of its unstable political and economic
environment

The following table details the

market share by region:
North American Market
Share
Harley-Davidson
Honda
Suzuki
Yamaha
Kawasaki
BMW
Other

46.40%
20.20%
9.80%
9.30%
7.10%
2.50%
4.60%

European
Market Share

Honda
Yamaha
BMW
Suzuki
Kawasaki
Harley-Davidson
Ducati
Triumph
Other

21.00%
17.70%
15.10%
14.80%
8.50%
6.60%
5.70%
3.50%
7.00%

Asia/Pacific
Market Share

Harley-Davidson
Honda
Kawasaki
Yamaha
Suzuki
BMW
Ducati
. Other

21.30%
19.10%
15.80%
13.60%
10.10%
7.30%
6.90%
5.90%

World Wide Revenue

2011 Worldwide Retail Sales of

Harley-Davidson Motorcycle

GROWTH SALES
For the first time in 17 quarters, Harley
reported selling more motorcycles than in the
year-ago quarter. Growth in the U.S was the
most impressive, while international growth
contributed too. Thanks to relatively surging
sales in the U.S., the mix of domestic to
international sales has dropped from 42% last
year to just 36% now.

Human Resource
Incidents that may
involve a potential
conflict of interest
Disclosure of any
waivers of any
conflict of interest
Regular reports to
the Board.
Reassess annually
the Human
Resources
Committee

Human
Resource
Committee Duties
and
Responsibilities is
to review the;
Total
compensation
Career
development and
management
succession plans
Make

Hasan Celal
Kk

Sturgis is a city in Meade County, South Dakota,

United States.
The population was 6,627 as of the 2010 census.
It is more popular than some city in the USA

 The Sturgis Rally is a motorcycle rally held

annually in Sturgis, South Dakota each first
full week of August
It was founded in 1938 by the Jackpine
Gypsies Motorcycle Club

The first year in Sturgis, there were 19

participants
But in recent years; Attendance was estimated
at, 614,951 in 2004, and 625,250 in 2005

 About 50.000 people coming

to this city for trade.

 It is the biggest motorcycle rally in the world

A lot of people comes from thousands of
miles of distance
For example: Some people comes from New
york by Harley Davidson motor.

 The distance between Sturgis and New York

1744 miles and Florida 2030 miles.
Distance isnt important for participator

The others of racing place

Sturgis
Florida
Shipley
Milwauke (wisconsin)
Las vegas

Mmine in
Strategic matr

STAGE 1 THE INPUT STAGE

EXTERNAL FACTOR
EVALUATION
(EFE)
STRENGHTWEAKNESESSOPPORTUNITIES
THREATS (SWOT
MATRIX)

COMPETITIVE
INTERNAL FACTOR
PROFIL MARTIX
EVALUATION (IFE)
(CPM)
STAGE 2 THE MATCHING STAGE
STRATEGIC
POSITION
AND
ACTION
EVALUATIN
(SPACE
MARTIX)

BOSTON
INTERNA GRAND
CONSULTI LSTRATEGY
NG (BCG) EXTERN
MATRIX
AL (IE)MATR
IX

STAGE 3 THE DECISION STAGE

QUANTITATIVE STRATEGIC PLANNING MATRIX

STAGE 1 THE INPUT STAGE

EXTERNAL FACTOR
EVALUATION
(EFE)
STRENGHTWEAKNESESSOPPORTUNITIES
THREATS (SWOT
MATRIX)

COMPETITIVE
INTERNAL FACTOR
PROFIL MARTIX
EVALUATION (IFE)
(CPM)
STAGE 2 THE MATCHING STAGE
STRATEGIC
POSITION
AND
ACTION
EVALUATIN
(SPACE
MARTIX)

BOSTON
INTERNA GRAND
CONSULTI LSTRATEGY
NG (BCG) EXTERN
MATRIX
AL (IE)MATR
IX

STAGE 3 THE DECISION STAGE

QUANTITATIVE STRATEGIC PLANNING MATRIX

EXTERNAL ANALYSIS FACTOR (EFE) MATRIX

COMPETITIVE PROFILE MATRIX(CPM)

Harley davidson

Critical succes
factor

weight

honda

yamaha

rating

Weighed score

rating

Weighted
score

ra Weighed
ti score
n
g

Product selection 0.15

0.30

0.60

0.60

Product quality

0.10

0.30

0.40

0.30

Price
compettveness
Market share

0.10

0.10

0.30

0.30

0.15

0.45

0.45

0.45

Management

0.05

0.20

0.20

0.20

Financial position 0.05

0.20

0.15

0.15

Customer loyalty

0.20

0.80

0.40

0.40

0.20

0.40

0.80

0.80

Global expansion
Total

1.00

2.75

3.30

3.20

INTERNAL ANAYLSIS FACTOR (IFE) MATRIX

STRENGHT

WEIGHT

RATING

WEIGHT SCORE

1-Strong brand name

0.15

0.60

2-t has strong market department

0.15

0.45

3-Strong relations built on trust and

respect with supliers and dealers

0.10

0.30

4-It is only major American

motorcycle manufactures
5-The standart and performance
segments of Harley Davidson make
up 70 % of the European heavy
weight motorcycle market
WEAKNESS

0.10

0.30

0.10

0.40

WEIGHT

RATING

WEIGHT SCORE

1.

Harley davidson dosnt

emphasize price in its product

0.10

0.50

1.

Loss of benefits

0.10

0.60

0.10

0.30

0.05

0.20

0.05

0.40

1.

Lack of opportunity for

advancement
1. Facing engoing capacity
constraints
1. Difficult to attract and retain
talented employee
TOTAL

1.00

4.05

STAGE 1 THE INPUT STAGE

EXTERNAL FACTOR
EVALUATION
(EFE)
STRENGHTWEAKNESESSOPPORTUNITIES
THREATS (SWOT
MATRIX)

COMPETITIVE
INTERNAL FACTOR
PROFIL MARTIX
EVALUATION (IFE)
(CPM) STAGE 2 THE MATCHING STAGE
STRATEGIC
POSITION
AND
ACTION
EVALUATIN
(SPACE
MARTIX)

BOSTON
INTERNA GRAND
CONSULTI LSTRATEGY
NG (BCG) EXTERN
MATRIX
AL (IE)MATR
IX

STAGE 3 THE DECISION STAGE

QUANTITATIVE STRATEGIC PLANNING MATRIX

Strong

n
e
r
t
S

s
h
gtmarketing
Product Quality
Brand
Recognition
Trademark
Licensing

Weakness

Price factor
Brain drain
Reliant on few
suppliers
Market share
Ongoing capacity

Threats
Harleys ongoing
capacity restraints
Loss in domestic
market share in recent
years
Competitors of Harley
Davidson
Environmental
protection laws

The international
market is now larger
than the U. S.

u
t
r
o
p
p

s
e
i
it
nCustomers
value
quality parts.
Women and younger
riders are increasing
becoming interested
in bikes.
Industry registrations

SWOT Analysis

S-O Strategies
Expand production into
Europe and Asia
Expand marketing to female
riders
S-T Strategies
Increase strong brand name
W-O Strategies
Pursue foreign markets more
agressively

SWOT
WEAKNESSES
STRENGTHSMATRIX
Dealer inventory
Customer retention
Financial position
Product selection
U.S.market share
U.S. dealer
Network

system
International
market share
Expensive product
Product selection
International
dealerTHREATS

OPPORTUNITIES
Increasing number
of riders
U.S. industry
growth
Aging population
Asian industry
growth

Union relations
Aging
U.S.population
Competitor
diversification
Declining
European growth
Availability
substitus

SPACE Matrix

Ratings

Financial Strength(FS)
Leverage

+6

Liquidity

+4

Return on invesment

+3

Working capital

+4

Industry Strength(IS)
Growth potential

+5

Profit potential

+4

Capacity utilization

+4

Ease of entry

+5

Environmental Stability(ES)
Competitive pressures

-4

Risk

-2

Price range of competing products

-5

Demand fluctuations

-2

Competitive Advantage(CA)
Market share

-2

Loyalty

-1

Product life cycle

-1
-1

SPACE MATRIX
Conservative

Aggressi

FS

+6
+5
+4
+3
+2

+1

-6
-5
+4
+5
CA

-4
+6

-3

-2
-1

-1

+1

+2

+3
IS

-2
-3
-4
-5

Defensive

-6
ES

Competitive

BCG Matrix
+30

1.0

STAR

Relative Market Share

0.50

PROBLEM CHILDREN

Industry
Growth
Rate

COW

DOG

-30
Harley-Davidson RELATIVE MARKET SHARE
GROWTH RATE

48%
13.029

0.0

INTERNAL-EXTERNAL (IE) MATRIX

Harley-Davidson U.S. MARKET SHARE 49%
Harley-Davidson EUROPEAN MARKET SHARE 07%
Harley-Davidson ASIAN
MARKET SHARE 22%
4
H
high
EFE Total

Weighted Score

strong

avarege

H.D US
Market
49%

H.D ASIAN
Market

medium

22%
2

H.D EUROPEAN
Market

Low

7%

Weak

GRAND STRATEGY MATRIX

Rapid Market Growth
QUADRANT:2

Weak
Competiti
ve Position

QUADRANT:3

QUADRANT :1

QUADRANT:4

Slow Market Growth

Strong
Competitiv
e Position

STAGE 1 THE INPUT STAGE

EXTERNAL FACTOR
EVALUATION
(EFE)
STRENGHTWEAKNESESSOPPORTUNITIES
THREATS (SWOT
MATRIX)

COMPETITIVE
INTERNAL FACTOR
PROFIL MARTIX
EVALUATION (IFE)
(CPM)
STAGE 2 THE MATCHING STAGE
STRATEGIC
POSITION
AND
ACTION
EVALUATIN
(SPACE
MARTIX)

BOSTON
INTERNA GRAND
CONSULTI LSTRATEGY
NG (BCG) EXTERN
MATRIX
AL (IE)MATR
IX

STAGE 3 THE DECISION STAGE

QUANTITATIVE STRATEGIC PLANNING
MATRIX

QUANTITATIVE STRATEGIC MATRIX (QSPM)

STRENGHTS

WEIGHT

AS

Net income of 2010 was $146.545,it is very big rate to compare with the
previous year 2009

0.075

The standard and performance segments of

E.P. EUROPE

TAS

E.P. ASIA

AS

TAS

0.0225

0.0225

0.135

0.09

0.05

0.0375

3
3

Harley Davidson make up70% of the EUROPEAN heavy weigted motorcycle

market

0.045

Harley Davidson operates in two segments:

Harley Davidson motorcyles & related products and HDFS(Harley Davidson

Financial Service)
0.0125
Harley Davidson is the only majr American heavyweight motorcyle manuf
0.05

0.2

0.3

0.15

WEAKNESS
High price
0.075
Harley Daviidson has problems in gaining more market share in some

0.15

0.15

European countries(Thats one of the main markets for heavyweight

0.9

0.9

0.05
Required production is not met ,analysing the future of heavyweight

0.15

0.15

motorcyle market

0.1

0.1

0.3

0.15

0.075

0.3

0.225

0.05

0.15

0.2

0.025

0.075

0.1

0.1

0.2

0.3

0.125

0.0125

0.025

0.75

0.3

0.225

0.012

0.0375

0.025

Strong brand name

0.075

motorcyles outside U.S).

0.2

0.03

They didnt yet start its sales in India one of the biggest market s

OPPORTUNTES

0.025

The European demand for Harley Davidson is the highest international market
and represents the single largest motorcyle market in the World

The international heavy weight market is growing and is now larger than the U.S.
heavyweight market

0.075

Women and younger riders are increasing becoming intrested in bikes

Market share increasing in Europe and Asia for the last two years
Increasing demand U.S market for bikes
Customer value quality parts
THREAT
Harleys ongoing capacity restraints caused a shortage supply and a loss in
domestic market share in recent years
The European UnionS motorcyles noise standars are more stringent than those
of Environmental Protection Agencies in the U.S increased enviromental stand

Conclusion
Harley- Davidson have to change American
culture and helped the future of motorized
vehicles.
Must implement latest technology & facilities.
Loyal customers are not sufficient for
company to survive.
its a journey but not a destination

Possible
Strategies
Expand into Foreign Mark
Asia
Europe

Product Development

Expand Motorcycle line for youn

market
Buell expansion

Concentric Diversification

Other recreational vehicles

Expand HOG and BRAG owne

Possible
Strategies

Made new alliances with s

local bike
companies to produce low c
India

Increasng dversity progr

Tour
museum

Increasing

advertising

Thanks for paying attention