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Harley-Davidson Inc

an American motorcycle manufacturer

Founded by William Harley and Arthur, Walterand William Davidson

Established in 1903

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.

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1920 Harley-Davidson was the largest

motorcycle manufacturer in the world 1929 One

of the few companies to survive The Great

Depression 1963

Had a solid 70% market share in U.S 1965 1983

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In 1952, following their application to the USTariff Commission for a 40% tax on imported

motorcycles, Harley-Davidson was charged withrestrictive practices.

Japanese entered the market

In 1969, American Machine and Foundry (AMF)

bought the company, streamlined production,and slashed the workforce.

This tactic resulted in a labor strike and a lower

quality of bikes.

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Refuse to change from traditional approach to

customer oriented approach

High in parts inventory

Down in quality , increased productivity,

removed skill labor

Corporate management focused mostly on short

term returns.

Belief in quick fixes for problems, such as

throwing in computers and state-of-the-art

machinery to improve productivity.

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In 1981, AMF sold the company to a group of

thirteen investors for $80 million.

Learned about Japanese companies way ofworking

Imposed in 1983 a 45% tariff on imported bikes

and bikes over 700 cc engine capacity

Rather than trying to match the Japanese, thenew management deliberately exploited the

retro appeal of the machines

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Introduced better imported parts in the bikes

Implemented the production improvement through TQMpractices which included: Just-in-time (JIT),

Materials-as-needed (MAN) &

Quality Circles (QC)

Use of Statistical operator control(SOC)

Educated the middle management and front line people inturning the plant to profit center by reducing defect productsand increase productivity.

Participated and learned about customers concerns andcomplaints at Harley Owners Group (HOG) rallies & createschanges

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Used the three Ms of business very well

Harley-Davidsons Success in the international anddomestic US market as compared to Honda Reasons that

contributed to the success of HD are: Total Quality Management (TQM) practices Lobbied

Washington to temporarily raise import tariffs from 4 to40 percent on non-US motorcycles,

Began their well-known and highly embraced brandingand marketing strategy.

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Created Harley Owners Group (HOGs)

Its 1 million people around the world united by acommon passion: making the Harley-Davidson

dream a way of life

Recreated the public image with high quality

licensed goods (i.e. leather jackets, jewelry,accessories, badges, caps etc.)

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Today, Harley-Davidson motorcycles are in demand notjust in US but throughout the world.

Twenty-two percent of motorcycles produced in the New

York, are produced for export, and much of Harley'sgrowth is due to exports Harleys never competed withHonda head-on.

Their marketing strategy has always been focused on

selling a lifestyle instead of a mere motorcycle.

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Thank you