Harley Case Study

In: Business and Management

Submitted By hugebass1
Words 297
Pages 2
Frank Finn
Ernie Silver
International Business
Feb 25, 2015

Case study #1 1. The nature of the international business environments Harley faces are complex and varies due to the different cultural and regions. It’s a diverse market that they are in. Harley faces such diverse market because clearly it’s due to customer preferences and market demands. Harley operates in different facilities in the U.S., Canada and China; with Potential growth markets include Japan, Australia, Latin America (Brazil), and India. Harley faces many cultural differences in languages, the different lifestyles, customs, and religion of the various countries. These differences could lead to Harley having inappropriate business strategies and this could lead to non-effective relations with there customers. However, understanding the different markets would be beneficial to Harley. Like for instance Brazil’s government initially “imposed high import tariffs that doubled the cost of bikes to Brazilian buyers”. To overcome the high costs of import taxes, Harley built a plant in Brazil. 2. Harley-Davidson can benefit from expanding abroad because it will allow them to insulate their business from domestic economic down turns. While also diversifying their product lines to adapt with other countries and the demands of the consumers. The advantages of expanding in international sales include maintaining a more balanced business model. By expanding internationally Harley-Davidson can broaden its global appeal and have its business less concentrated on one particular region of the world in particular, the United States. A global expansion can also push Harley-Davidson into new emerging markets such as China, India, and Brazil, which have very large populations and many potential customers. With Harley going abroad it will opening up some many more new opportunities for them. 3. How…...

Similar Documents

Harley Davidson Case Study

...The Harley Davidson case evaluates several options and choosing the one that best aligns with company’s strategy, is financially viable for long term and provides a strong footing against the rising competition. The case is fundamentally focused on the question of timing and capacity. Timing is a factor that needs built into our decision tree’s framework and in this case, ultimately asking, when and how much capacity? In order to answer the question, we diagnosed the issues and identified limitations of the current capacity, which hampers Harley’s ability to expand and meet demand. It is important to appropriately incorporate risk as it goes well beyond just capacity. For incorporate risk into the analysis and decision making we recognized that a series of tools would be required. The approach involved three analysis tools for considering various factors that are important for decision making: Demand Analysis: We needed to forecast for the demand, supply and margins, while distinguishing demand from output and sales. Scenarios and Capacity Analysis: Next step was to determine the factors for building the scenarios, assign probabilities, estimate the cash flow and then compute the NPV. We modeled capacity adjustments and continuous improvements, then included plans or options for changes and new products. Risk Analysis and addressing management’s success criteria: Our decision needed to account for the risk aversion of the company due to its learning from its......

Words: 2941 - Pages: 12

Harley-Davidson Case Study

...Why would Harley-Davidson put as much emphasis on consistency of quality as it does on level of quality? In the 1980’s Harley-Davidson was going through Great Depression and teetered on the brink of bankruptcy. They decided to reduce the inventory and improve total quality of the product in order to attract new as well as experienced buyers. They changed styling, performance, and features which represents the freedom and individuality of the motorcycles. They started doing custom-build bikes, because this way Harley-Davidson can see what customers want in order to express their individuality (Pride, et.al. 2011). 2. How does Harley-Davidson use customer services to differentiate its motorcycle products? Harley-Davidson maintains positive relationship with customers simply by satisfying their needs in the products. They do custom-build bikes and products which are usually in high demand. They also offering the driving courses as well as group riding in order to encourage customers learn how to drive. Harley-Davidson in order to promote their product has web site and sends an existing members two magazines which include: member events, articles about Harley-Davidson’s product and services. I think this is a good idea having the member’s events, because customer’s communication is a mouth-by-mouth advertising, and if the customers are satisfied with the product and services, then the company will definitely grow (Pride, et.al. 2011). 3. What role do you think the......

Words: 340 - Pages: 2

Harley Davidson Case Study

...Harley-Davidson, Inc. Case Study BUS 755 April 23, 2004 Joel Hirschboeck Heidi Scheller Markham Chatterton Contents Introduction Problem Statement Supply Management Strategy Project Scope Project Execution Software Vendor Finalists Recommendations 2004 Update References Introduction Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. Founded in 1903 in Milwaukee, WI, Harley just celebrated its 100th anniversary with a series of events around the world that culminated in hundreds of thousands of motorcyclists rallying last summer on the shores of Lake Michigan. In 1929, there were 241 motorcycle manufacturers in the US. After the Depression, only two remained: Harley and Indian. By 1953, Indian went out of business, leaving Harley-Davidson as the only American motorcycle manufacturer. Financial difficulties in the 1970’s led to the parent company, AMF putting the motorcycle division up for sale. Without a buyer, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed goods, such as apparel and related accessories. Now a publicly owned company, Harley has scored double digit growth for eighteen consecutive years. Harley transformed......

Words: 2436 - Pages: 10

Harley Davidson Case Study

...Executive Summary “Harley-Davidson is the iconic American motorcycle manufacturer. Founded out of a small shed in 1903 by William S. Harley and Brothers Arthur and Walter Davidson in Milwaukee, Wisconsin. The Motor Company produces traditional cruiser motorcycles utilizing air-cooled V-Twin engines.  When Harley and Davidson produced and sold their first motorcycle in 1903, they were one of many small motorcycle marques springing up across the country. Flash forward more than a century and the Harley-Davidson brand is so rooted in American culture that the history of the company intertwines with the history of America itself. “ Harley- Davidson a brand that say I’m an American with its strong image they summarize what biking is and isn’t. They produce quality products that are reliable and durable. With so much more to offer Harley-Davidson cannot compete with the Japanese in terms of market share in Europe they only have 6.4% which is excruciating for a company who consider their product as a luxury item with all top of the line parts, brand image ,and all the thing they offer to the consumers. That’s why we look for alternative that could be beneficial to Harley-Davidson which is Market penetration, market development, and product development in Europe. We generated this idea ease them and with employees who know what their job is and make the necessary adjustment in their product or service need not worry of what will happen. Situational Analysis Environment......

Words: 3348 - Pages: 14

Harley Case Study

...The Strategic Situation of the Harley Davidson Harley Davidson is a 105 year-old company that was originally established by neighbours Arthur Davidson and William Harley; it is obvious that the name of the company was derived from the name of the two founders. Harley Davidson is into the industry of motorcycle. The growth of the said industry started from different developed countries such as the United States, France, Germany, Spain, France as well as the Great Britain. It was further developed after the World War II. Harley Davidson is one of those companies that have a long history as well as have been through several ups and downs throughout their operation. During the past operation of the company there have been many factors that have affected their image, performance, position in the market and the global industry, relationship to their customer, and their overall sales.  Figure 1 PEST Analysis of Motorcycle Industry’s Past Development Figure 1 shows the four main factors that have affected the past condition of the motorcycle industry. There are four main political factors that have affected the performance of the overall industry. First is the agreement that will be implemented in order to reduce gas. It requires all the producers as well as manufacturer of different motorcycle companies to reduce pollutants by 60% and it was implemented in February 24, 2003.  Another important law that is directly connected to the industry of motorcycle is the process of......

Words: 7709 - Pages: 31

Harley Davidson Case Study

...Case Study 6.1: Harley-Davidson, Inc. Zachary NewComer 11/06/14 Auditing Prof. Riggs (1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three. 1. Suppliers might leak information to Harley-Davidson’s competitors 2. Suppliers might not have the same ability to be technologically advanced as Harley-Davidson’s new systems 3. Going to an internet based system makes you susceptible to people hacking the system and acquiring information. 4. When you have an internet based system it could go down at any point making the time it is down a loss of productive time that in the old system would not have been lost. 5. Hiding fraud would be easier because more people have access to system and there is no longer a paper trail for auditors to trace in the new system. 6. If the system permanently crashes or is destroyed by something like a fire you might not be able to save some or all of the information to continue business afterwards. 7. If Harley-Davidson ever wanted to do business with a different supplier they might not be ready or have the ability to do business with them. [2] For each risk you identified in question number one above, identify a control Harley-Davidson might have implemented to mitigate that risk. 1....

Words: 1393 - Pages: 6

Harley Davidson Case Study

...Case Study 6.1: Harley-Davidson, Inc. Zachary NewComer 11/06/14 Auditing Prof. Riggs (1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three. 1. Suppliers might leak information to Harley-Davidson’s competitors 2. Suppliers might not have the same ability to be technologically advanced as Harley-Davidson’s new systems 3. Going to an internet based system makes you susceptible to people hacking the system and acquiring information. 4. When you have an internet based system it could go down at any point making the time it is down a loss of productive time that in the old system would not have been lost. 5. Hiding fraud would be easier because more people have access to system and there is no longer a paper trail for auditors to trace in the new system. 6. If the system permanently crashes or is destroyed by something like a fire you might not be able to save some or all of the information to continue business afterwards. 7. If Harley-Davidson ever wanted to do business with a different supplier they might not be ready or have the ability to do business with them. [2] For each risk you identified in question number one above, identify a control Harley-Davidson might have implemented to mitigate that risk. 1....

Words: 1393 - Pages: 6

Harley Davidson Case Study

...Introduction The Harley-Davidson Company was founded in Milwaukee, Wisconsin by William Harley and two Davidson brothers Walter and Arthur. They sold their first motorcycle, a motorized bicycle with a three-horsepower engine. In 1907, before they left the factory grounds they sold 50 motorcycles. In 1909, they introduced a iconic two cylinder V-twin engine. By 1920 Harley was the largest motorcycle manufacturer in the United States and the industry's technological leader. During World War I, over 90,000 cycles were built for the military which elevated their production. After the war, Harley went from producing military to recreational bikes. Harley developed and introduced the K-model (1952), Sportster ("Superbike", 1957), and Duo-Glide (1958) motorcycles. By 1953, Harley-Davidson was the last remaining major motorcycle manufacturer in the US. Harley-Davidson became a hostile takeover bid, but the founding families sold it to a “white knight” a large manufacturing company American Machine and Foundry (AMF) in 1969. AMF put the company up for sale in the late 1970's due to a gross reduction in sales. The reduction in sales was representative of a poor level of quality in the Harley bike compared to their Japanese counterpart. In 1981, thirteen members of the Harley-Davidson management team purchased the company from AMF in a leveraged buy-out. The demand for motorcycles dropped dramatically and Harley's share of this market also continued to drop. There was even a......

Words: 1420 - Pages: 6

Harley Davidson Case Study

...Harley Davidson Case Study Case study of Harley Davidson Alan Potrus California Baptist University Author Note: This paper was made for Professor Joe Putulowski in accordance to week 6 assignment instructions for The Harley Davidson Case Study. Intro CEO Jeff Bleustein had his work cut out for him at the end of 2003 when he reviewed the company’s financial statements for the year. It was Harley Davidson’s 100 year anniversary and there were many festivities set out for that year that would eventually attract millions of participants. Sales and profits had broken previous records for the eighth consecutive year. HD has been performing so well it made a 180 degree turn in comparison to its numbers in the early 80’s when it was putting out 40,000 bikes a year and struggling with a mountain of debt. Jeff now had to figure out how to continue the uprising of profits. Because of this, Bleustein had little opportunity to reminisce about Harley’s 100 year celebration. Jeff set a target of 400,000 motorcycle sales by 2007. Jeff knew that in order to achieve this goal he needed to set a prestigious strategy plan that would accommodate the market for motorcycles and possibly attract new customers into the motorcycle market. Harley-Davidson’s Strategy Bleustein began preparing a strategy review with his top management team. They discussed the different forces that would cause HD to fall off course. It is......

Words: 1068 - Pages: 5

Harley Davidson Case Study

...you have? The objectives of HDI include increasing sales, increasing market share in Europe, and achieving a sustainable competitive advantage. So, HDI is seeking to penetrate the market as well as engaging in market development, which in this case means attracting a new demographic segment of younger and European customers it has not yet attracted before due to several reasons such as the price and the appeal of the Harley Davidson brand as being a motorcycle “an old guy would drive”. As stated in the case study, HDI does not and will not have cost leadership in the industry it competes in. The huge gap between Honda which produces over 5 million bikes annually and HDI, which produces slightly over 200.000, allows Honda to benefit from economies of scale and therefore offer their products at lower prices than HDI. The relatively small size of HDI limits its ability to invest in technology and new products, which means that HDI neither has the most advanced technology, nor superior performance. However, as the company recognizes, it is not selling motorcycles, it is selling the “Harley Experience”. This lifestyle and spirit, which no competitor has been able to copy or even beat so far, is the competitive advantage and USP of HDI. Harley Davidson motorcycles are not primarily a transportation vehicle, but a statement of style. The HDI image and the brand loyalty among its consumer base are the company’s strongest assets. As the demand in Europe is increasing, HDI should......

Words: 2894 - Pages: 12

Harley Davidson Case Study

...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......

Words: 3108 - Pages: 13

Harley Davidson Case Study

...the final consumer- in other words they are the retailers, the wholesalers, physical distribution firms, marketing service agencies and the bank 4. The forth thing we can control is the customer and the consumer markets. There are 5 types of markets that the company needs to study closely: the consumer market (need to deal with them), the business markets, the government markets (need to kiss their ass), the reseller markets (need to make them happy) and the international markets. (Need to have international markets because its hard to make a living in Canada) 5. The fifth thing we can control is our competitors- we are constantly trying to compete with other firms 6. The sixth and final thing we can control is the public- in other words, if the public rates us poorly, we won’t have any consumers buying our products. For example, if the media sees that the president of the company is a jerk and reports it, then the public wont like the company and won’t buy the company’s products There are things we can control but there are others that we cannot, for instance, the macro environment is incontrollable There are 6 major forces: 1. The demographic environment: demography is the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics * We look at the size of the market * In terms of density- Canada is a very attractive market- so when people sell their products in Canada, they have to......

Words: 24040 - Pages: 97

Harley Davidson Case Study

...STRATEGIC MANAGEMENT Case Analysis CASE: Harley Davidson, Inc- 2008 By Julian Kee Synopsis Harley-Davidson is one the leading motorcycle manufacturers in the world. It’s hard to imagine the global brand’s simple beginning. In 1901, Harley-Davidson motor company started in a backyard shed by friends William Harley and Arthur R. Davidson who wanted to create their own motorcycles. In 1907, the company had grown to become incorporated. Harley-Davidson was acquired by AMF in 1969, however repurchased in 1981 by the Vaughn Beals. The company then underwent changes to production an inventory management. Since 1996, Harley-Davidson has focused only on producing motorcycles and accessories. The company is run by a 38-year employee name James C. Ziemer, who has experience in many different positions. He is supported by a board of directors with diverse professional backgrounds. Together, they oversee the US and global operations which includes countries like Canada, Latin America, and Europe. Harley-Davidson has two different business segments which include motorcycles and financial services. The current economic conditions have affected all industry including motorcycles. While Harley-Davidson has proven to do well during the recession, they have also faced some challenges. As the economic conditions change, Harley- Davidson has implemented new marketing strategies and e-commerce to gain a competitive advantage. Resources Strong reputation......

Words: 1881 - Pages: 8

Harley Case Study

...Harley Davidson case study Harley-Davidson’s business strategy is one that includes exporting as well as being involved in joint ventures.  Because Harley-Davidson bikes proved to be as popular abroad as they were in the United States, the company decided to think more seriously about international markets and exporting.  In addition, Harley launched a joint venture with Porsche AG of Stuttgart, Germany.  Companies and firms like Harley engage in joint ventures, or co-ownership arrangements, in order to establish a direct investment presence in a foreign country that pool resources and share risks and control for business operations.  In this joint venture with Porsche, Harley hoped to source and assemble power-train components for use in potential new motorcycle products.  I would consider Harley to be a multinational corporation.  If I was Harley’s top management, I would consider expanding in regions such as Asia or Europe.  I would consider expanding in Asia because Asia is a “megamarket,” meaning it is still gaining as a power in the world economy while also already achieving superpower status.  In Asian regions, “opportunity” is always the watchword of the day.  I feel that Europe would also be a good place to expand because Europe is currently a place going through dramatic political and economic development.  Europe is a region that is willing to eliminate trade barriers, create uniform minimum technical product standards, unify financial regulations, and......

Words: 694 - Pages: 3

Harley Davidson Case Study

...1 a) How did Harley dominate the US industry historically Historically, Harley-Davidson managed to dominate the US market by correctly identifying its strengths, weaknesses, opportunities and threats and understanding the environmental factors that influenced the industry that it operates in (Figure 1 and Figure 2). By utilising its strengths to maximise the opportunities presented to the company, Harley-Davidson was able to implement a succession of affective strategies, allowing it to capture 60% of the motorcycle market and subsequently became the market leader in the late 1950s. In the early years, the company attracted customers and established brand credibility by utilising the ‘victorious’ and ‘sporting’ brand image of one of its founders, Walter Davidson. The company understood its customers need for a product that can be fixed at home and therefore, was able to fulfil this need with its pioneered V-twin engine innovation. In addition, Harley-Davidson invested in R&D, focusing on improving the quality and reliability of its machines, building on its strengths and therefore was able to charge a premium for its motorbikes. This, in turn assists Harley-Davidson to acquire its prestigious, luxury brand image and achieved a cult following. In doing so, Harley Davidson was able to increase its market share, despite a sagging economic environment of the 1920s. When sales declined in the 1950s, the company relied on its innovations as a point of differentiation and......

Words: 2650 - Pages: 11