Harley Davidson Global Competition

In: Business and Management

Submitted By redgiraffeeee
Words 297
Pages 2
Case Question

1. What is the nature of international business environment Harley faces? What types of risk does the firm face?
The nature of international business environment Harley faces is domestic and international with complexly and risk involve. This is clearly shown in the variation of sales in its two major markets, one at home in the U.S and the other in Europe. As shown in the in the graph chart in 2006, Custom models accounted for 47.4% in the U.S while only 13.4% in the European market. Other sales based on style of bikes are in the U.S performance 15.1%, touring 35.5%, and standard 2.1% while its other market sales in Europe were performance 41.4%, touring 26.1%, and standard 19.2%. The reason Harley faces such diversification is clearly due to consumer preferences. The European markets desires performance bikes made for the open roads and high speed demands. The four main risk which are cross-cultural risk, country risk, currency risk, and commercial risk.

2. How can Harley benefit from expanding abroad? What type of advantages can the firm obtain? What advantages acquired abroad can help Harley improve in its home market?
Harley’s can benefit from expanding abroad because it will allow them to separate their business from domestic economic slumps, but also diversifying their product to adjust with the demands of the consumers. The advantages of expanding international sales include maintaining a more sensible business archetype. By increasing internationally Harley can widen its international appeal and have less focused on one particular section of the world in particular. An international growth can also push Harley into new evolving markets such as China, India, and Brazil which have very large populations and many potential…...

Similar Documents

Harley Davidson

...Harley Davidson Harley Davidson also known as the Ferrari of bikes states in their mission statement “We fulfill dreams through the experience 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 (Youtube).” Harley Davidson strives to build and provide not only a mode of transportation but also a lifestyle. From their inception Harley Davidson has “enjoyed an active path of enormous growth and gradually emerged as the most recognized motorcycle producer in North America.” Despite economic turbulence, the company has managed to operate efficiently, largely supported by its strong financial backbone (Repine Jr., 2011). Other key strategies such as branding and global expansion have enabled the company to sustain its growth rate for a long term. Harley-Davidson is committed to providing the best customer service in every department.  Although Harley Davidson’s mission implies the company connection with customers helps create superior value, Harley Davidson still needs to formulate a way to measure customer service. The company uses surveys to collect data relating to customer service, customer experience, and customer opinion. One method Harley Davidson uses for data collection is a panel of owners. Harley Davidson has an exclusive target market ranging in mostly men, although it is expanding out to woman and teens. Middle aged men possibly going...

Words: 1255 - Pages: 6

Harley Davidson

...Harley Davidson Basic Background Description Of Company & Products 1.) Motorcycles, Apparel, Accessories, Collectables, and Spare Parts. 2.) Biking Lessons, Events, and Museums. 3.) Financing and Insurance 4.) History a. 1903: First motor-bicycle built by Harley & Arthur Davidson. b. 1904: First dealership in Chicago, IL. c. 1906: New Factory Opened in Milwaukee, WI (28’x28’). d. 1907: Harley-Davidson Motor Company Incorporated. i. Stock split between four owners: Harley, Arthur, William & Walter Davidson ii. Company also doubled its factory space. e. 1912: Built a six story building on Juneau Avenue in downtown Milwaukee. f. 1920: Harley-Davidson largest motorcycle manufacturer. iii. Supported by 2,000 dealers in 67 countries. g. 1953: Hendee Manufacturing, one of Harley’s competitors goes out of business. iv. The next 46 years, they remain the only manufacturer of heavyweight motorcycles in the US. h. 1962: Purchases 60% equity share in Tomahawk Boat Manufacturing Company. v. Used the company to manufacture its own fiberglass parts. i. 1973: Opens 400,000 square foot plant in York, Pennsylvania. j. 1990’s: Distribution center opens in Franklin, WI. Age Of Company & Number Of Employees 1.) Founded in 1903; first bike was finished this year. 2.) Number of employees? Location 1.) Located and operated out...

Words: 954 - Pages: 4

Harley Davidson

...Low Like any automobiles, Harley-Davidson's industry requires large manufacturing facilities and equipments to enter. New Entrants would have to have a large amount of capital is start in this industry. Already established firms such as Harley-Davidson, Honda, Suzuki, Kawasaki, Yamaha, and Ducati have the advantage of brand recognition from all over the world. These companies also established customer loyalty, especially Harley-Davidson. This means that any new entrants trying to enter the industry have to spend tons of money in advertising and promotion to receive the same amount of brand recognition and customer loyalty that these powerhouse companies in this industry already have gained. With the lack of brand recognition and customer loyalty, retailers would be afraid to carry such product because of the risk it carries if it doesn't give you profit. Threat of Substitutes: Low Motorcycles are seen as leisure products and don't take much out of one's income. Some substitute items for a motorcycle is a motor scooter and dirt bikes. Customers will switch to the substitutes if price increases and purchasing a cheaper substitute will be the bette... Threat of New Entry: Low Requiring high capital investment to enter the business because of the scale economies in production, research, marketing and service of this industry is high. Brand Identification of Harley Davidson has been strongly established for...

Words: 2238 - Pages: 9

Harley Davidson

...BUSINESS STRETEGY | HARLEY DAVIDSON | | SUBMITTED BY- MANISHA YADAV(IB/05/04) | | SUBMITTED TO-MR. AMIT SAREEN | 9/14/2013 | | Table of content Chapters | Page No | Introduction | | History | | Value | | Vision,Mission | | Product Extension | | Intensive Strategies | | Organizational Chart | | Management | | İnternal & External Forces | | Micheal Porter Analysis | | Market Share | | Human Resource | | Strategic mix | | Competitive Profile Mix | | Internal Analysis Factor Mix | | SWOT & SWOT Matrix | | BCG | | Conclusion | | Possible Strategies | | 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......

Words: 2820 - Pages: 12

Harley Davidson

...12/7/2013 Written Case Analysis | Group #4 | Harley Davidson | Group #4 Written Case: | Executive Summary: Harley Davidson, Inc. began operations in the first decade of the 20th century. Since that time they have developed three major business segments including motorcycles, transportation vehicles, and work within the defense sector. They are headquartered in Milwaukee, WI and in 1990 became the 865th largest U.S Company, as ranked by Business Week. Harley Davidson is best known for its superheavyweight motorcycles. By 1960, Harley Davidson was the undeniable market leader in the superheavyweight category of motorcycles. This was when Japanese manufacturers started to enter the market with lighter weight models of motorcycles which were not in direct competition with Harley’s much larger bikes. A large increase in supply, along with great marketing efforts by the Japanese manufacturers, rapidly increased the demand for motorcycles. Over the years, leading up to 1990, Harley Davidson has remained the market leader in the superheavyweight category of motorcycles with a 62.3% share of the U.S market. However, when looking at the U.S motorcycle market as a whole (see Figure 1), Harley Davidson only represents a 13.9% share of the market. The determining factor behind the lack of market share when looking at the macro motorcycle market is that Harley Davidson only produces larger bikes. They do not produce any motorcycles in the lightweight category. ......

Words: 1039 - Pages: 5

Harley Davidson

...Future Harley-Davidson Report MKTG 445 Dr. Mattson September 29, 2004 Jason Conlon Daniel Adkins Eric Huffman Kyle Hahn Table of Contents Introduction Page 3 Global Competition Page 3 New Competition Page 5 Competitive Remakes and Accessories Page 7 Motorcycle Buyers Page 9 Motorcycle Company Websites Page 11 Conclusion Page 13 Works Cited Page 14 Introduction Over the past few years, Harley Davidson has had to make numerous changes to remain competitive. The first thing we will take a look at is global competition. Harley Davidson’s increasing demand overseas has caused many changes over the past few years. The second thing we will take a look at is new competition. The demographics of the nation have been changing, due to the aging of the “baby boomers,” and Harley has to make changes in order to keep up with the competition of the market. New competition ranges for sport bikes to other competing cruiser models. The third thing we will look at is competitive remakes and accessories. The competition for Harley is on the rise due to the high interest in custom motorcycles and cheaper accessories. The fourth thing we will take a look at is motorcycle buyer’s demographics. The market is ever changing and it is important to look at how Harley is adapting to these changes. The final thing we will address is how......

Words: 3356 - Pages: 14

Harley Davidson

...HARLEY DAVIDSON CASE STUDY With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and/or manufacturing techniques. Harley-Davidson is one of those excellent companies whom has challenged traditional ideas. We intend to show through this case study that any company can follow Harley-Davidson's techniques and lead themselves to excellence. Company History Harley-Davidson Motorcycle Company was established in 1903 by William Harley and Walter, William, and Arthur Davidson, who built their first three motorcycles in a shed in Milwaukee. In 1909, the company introduced its trademark bike; a 2 cylinder, v-twin engine (the fastest motorcycle at that time), able to reach speeds of 60 mph. However, a few years later the competition was becoming stiffer. During World War I, the demand for United States motorcycles overseas grew tremendously. As a result, HarleyDavidson became a leader in innovative engineering in the 1920's. With the introduction of the front brake and "teardrop" gas tanks, Harley was quickly developing its mystic appearance. The industry, which was thriving after World War I, was diminishing quickly as a result of the Great Depression. As one of only two remaining motorcycle companies, Harley-Davidson survived because of exports and sales to the police and military. Representative of the World War I motorcycle...

Words: 5148 - Pages: 21

Harley Davidson

...Executive Summary Size Up Analysis Harley Davidson is a leader in the motorcycle manufacturing industry that mainly competes in the heavyweight class motorcycles. They compete mainly against Japanese manufacturers in the market. During the 1980s, the company came close to bankruptcy due to quality issues that accompanied its rapid production expansion. However, that incident compelled Harley Davidson to renew its focus on quality. Since then, Harley Davidson’s successful differentiation strategy focusing on quality, luxury and branding has been reflected on Harley Davidson’s financial highlights. Net income has more than doubled in a span of 5 years; net income increased to $213 million in 1998 from $104 million in 1994. Net working capital has also increased to $376 million in 1998 from $179 million in 1994. Harley Davidson’s share price has more than tripled during the same period as well, suggesting improved investor confidence. However, we should note that Harley Davidson has increased its financial leverage as displayed by the change in their debt to assets ratio. It was noted that Harley Davidson’s customers are willing to wait 2 years for its motorcycles. There seems to be unmet demand and that may have caused a focus on production to be ingrained into their culture. This is evident in their vision to dramatically increase production capacity demonstrated in their plan 2003. Harley Davidson’s products also have very long life cycles. The evolution of......

Words: 1920 - Pages: 8

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

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

Harley Davidson

...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

Harley Davidson

... Harley-Davidson’s strength of its founded brand image, along with its array of products, assists with its lead in the industry. Conversely, evolving emission standards for motorcycles in addition to new competition may have a negative affect on Harley Davidson’s growth. Harley Davidson’s initiatives of quality control and strategic, financial planning continue to bring success to the company through its many ventures. Harley-Davidson owns one of the strongest brands in the world, establishing iconic positioning, that help’s it magnetize and maintain a devoted customer base thus generating revenue. Harley-Davidson’s motorcycles are well known for their long-established style, effortless design, quality, and durability thus remaining strategic.     Through it strength of broad products and service portfolio Harley-Davidson continues to offer an array of products and services ranging from motorcycles to related parts and products, and also through its subsidiary HDMC (Harley-Davidson Motor Company that manufactures Touring, V-rods, Dyna, Softail, and Sporster motorcycles) and HDFS (Harley-Davidson Financial Services). HDMC models are notable for their engines, frames, and suspensions. HDFS (Harley-Davidson Financial Services) has a competitive edge that offers financial services for its products to retail and wholesale financial services for its products in the motorcycles business in the US and Canada regions. HDFS also provides wholesale financial......

Words: 269 - Pages: 2

Harley Davidson

...Harley-Davidson maintains a large margin in its dominance in the U.S. Heavyweight Motorcycle market as compared to its major competitors. While the United States is HOG's most important market, the company sells motorcycles in many other markets worldwide. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality which are why customers deem HD’s premium price to be “acceptable or reasonable”. The Harley-Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base. * Long Term Risk Overall Harley Davidson is a strong company with excellent margins and constantly growing revenues. The main concern for Harley is whether or not they can sustain their growth in the face of improvements in their competitors’ products and a maturing market. One major trend facing Harley Davidson is that average age of a Harley Davidson is getting higher, meaning the company is not as successful now as it has been in the past at attracting new and younger riders. This is also evidenced by the slightly weaker sales in less powerful entry level bikes. Many of HD’s competitors are more......

Words: 1367 - Pages: 6

Harley Davidson

...Harley Davidson Case In: Business and Management Harley Davidson Case Porter’s Five-Force Analysis: 1. Threat of new entrants: (Low) * Requires high capital investment to enter the business of the scale economies in production, research, marketing and service of this industry is high. * Brand identification of Harley Davidson has been strongly established for years. New entrant will have to overcome customer loyalty of Harley. 2. Bargaining power of suppliers: (Moderate/High) * Harley’s suppliers are not fragmented so they have a high bargaining power. * Switching cost of changing suppliers is high because of the nature of Harley’s products- -could require investing heavily to be a supplier. 3. Bargaining power of buyers: (low) * Since product is differentiated, customer tends not to be price sensitive. * Product is differentiated or targeted for niche market therefore the buyer will not find the alternative product. 4. Threat of Substitutes: (High) * Customers’ taste is shifted into Japanese motorbikes. Ex. Suzuki * Frequent product introductions and continuous improvements in price. 5. Rivalry: (high) * Lack of products differentiation or narrow product line. * Rivals like Honda are diverse in strategies, origins and personalities. SWOT Analysis 1. Strengths: Domestic and International market share, financial status (The company’s revenues had grown at a compounded annual rate of 16.6 per- cent since 1994 to reach......

Words: 294 - Pages: 2

Harley Davidson

...“Harley Davidson” Team #1: Tamala Hamilton Emmy C. Rodriguez Jason N. Cedillo Nov. 17, 2007 “Harley-Davidson” Harley-Davidson motorcycles have been around for over 100 years, and from what Harley has been able to accomplish throughout the years, I think it is safe to say that Harley-Davidson will be around for another 100 years. Since its first motorcycle built in 1903 by William Harley and the Davidson brothers, Harley-Davidson has been transformed into an American icon. Every customer feels like each Harley-Davidson bike is custom built to suit their individual taste and style like the loud roaring sound, unique powerful engine, and its rugged bad boy image. With all the personas and symbolic labels that Harley-Davidson possess, this little bad boy company manages to incorporate the concept of family first to its employees making it one of the best companies to work for. The road to success did not come easy for the Harley-Davidson company. The company had several ups and downs that nearly forced the company to shut its doors of operation permanently. With the many different CEO leaders came different leadership styles, each with its own distinctiveness that rescued the company to only bring it back down to near destruction. The Harley-Davidson company finally resurrected itself when a group of senior executives managed to borrow enough money to purchase a buyout of the company to take full control of Harley-Davidson and make the necessary......

Words: 3680 - Pages: 15