Case Study 19

C A S E 19

Harley-Davidson Inc. 2008:Prepared for Harun ur rashidPrepared by

Name: Masud Rana

ID: 11102205

Section: DProgram: BBAIUBAT- International University of Business Agriculture and TechnologyIntroduction

Harley-Davidson is an American motorcycle manufacturer.

One of two major American motorcyclemanufacturers

The company sells heavyweight (over 750cc) motorcycles

have a distinctive design and exhaust note.

especially noted for the tradition ofheavy customization

Harley-Davidson sustains a loyal brand community

History

William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson motorcycle. The bike was built to be aracer, with a 3-1/8 inch bore and 3-1/2 inch stroke. The factory in which they worked was a 10 x 15-footwooden shed with the words "Harley-Davidson Motor Company" crudely scrawled on the door. Arthur's brother Walter later joins their efforts.

Mission statement

We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stakeholders.

Proposed Vision

To be recognized as the best motorcycle company in the worldExternal EnvironmentEconomic-

Confidence in economy is directly proportional to the purchasing of consumer items.

The economic crisis will hit thissegment very much.

Currency fluctuation is also a big problem in this industry

Revenue from sales outside the using increased 7% from 2006 to 2007

Technological

As technology changes, customers expectations increase.

Harley-Davidson is one of the main manufacturer and user of V-ENGINE configuration.

Harley-Davidsons have a wide variety of products according to Standard, Performance, Touring & custom.Political-

U.S Government and People are considering Harley-Davidson as an American icon.

Federal, state, local authorities have control requirements relating to air, water, noise, and pollution.

Legal-

Harley-Davidson is facing some legal problems in Asian countries, in India there is 60% tariff and various other taxes will cause the price of the bike to double

Noise pollution and some emission standards of Harley-Davidson bike is not up to the level of some countries across the globe.

Environmental-

This industry is the first attacked by environmental activists, the environmental laws varies from country to country. In Europe its Euro, in India its BS.

Harley-Davidsons one of the main problem is this environmental problems

Socio-cultural-

Traditionally targeted to upper middle class males.

Increased demand by women for motorcycles.

Industry EnvironmentFive forces affect the industry environment-

1. Potential development of substitute products

2. Rivalry among competing firms

3. Bargaining power of suppliers

4. Potential entry of new competitors

5. Bargaining power of consumers

Internal environmentCorporate Structure-

1. Divisional Structure: motorcycles and financial services.

2. Centralized decision making: CEO, top executives including board of directors.

Corporate Culture-

1. Harley-Davidson emphasizes quality, reliability, and styling

2. Passion for the business of riding

3. Acquired Buell to enhance niche product offering Organizational Activities Analysis Marketing Marketing efforts are divided among dealer promotions, customer events, magazine and direct mail advertising, public relations, cooperative programs with Harley-Davidson/Buell dealers, and national television advertising. Harley-Davidson also sponsors racing activities and special promotional events and participates in all major motorcycle consumer shows and rallies.

Human Resources Management (HRM) Approximately 50% of Harley-Davidsons 9,000 employees ride a Harley-Davidson.

All employees, including Ziemer and Bluestein, go through a dealer to purchase their bike. This way, the employees see the customer experience firsthandAnalysis of Strategic FactorsSTRENGTHS-Thestandard andperformancesegments ofHarley Davidson make up 70% ofthe European heavy weight motorcycle market

Harley-Davidson isthe only majorAmerican heavyweight motorcycle manufacturer.

Strong brand name

Customization of the bikes, thisis Harley-Davidsons major revenue maker.

WEAKNESSHigh price

Required production is not met, analyzing the future of Heavyweight motorcycle market

*Losingmarketshare continuously, especially in the Europeanmarket.OPPORTUNITIES

Women and younger riders are increasing becoming interested in bikes

Theinternationalheavyweightmarketisgrowingandisnow larger than the U.S. heavyweight market

Market share increasing in Europe andAsia for the lasttwo years

Increasing demand in US markets for bikes

Customers value quality partsTHREAT

Harleys average buying age is 42 years oldand increasing

Environmental protection laws

Buell division needs to continue to produce a quality motorcycle under Harleys brand name

Reference www.harley-davidson.com

www.google.com

Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY, 13th edition, Pearson Education 2012.