Harley – Davidson: Harley Style and Strategy Have Global Reach

PRESENTED BY :-Avinash YadavDheeraj SardaHitesh 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 HD’s 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.

• 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 country’s

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.

Case Study Analysis

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 law’s• Cultural Differences (language, etc)• Environmental Challenges (Availability of Raw

Material)

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 weren’t 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.

Thank You