This action might not be possible to undo. Are you sure you want to continue?
Submitted byAbhishek Pathak Faraz Khan Pratibha Yadav Rahul Pandey Sandeep Yadav ShubhamSharma
Harley-Davidson Motor Company
•Type • Public - 1984 , NYSE - 1987
• •Founder Harley Arthur Davidson Walter Davidson William A . Davidson •Headquarters •Revenue ( 2009 ) •Employees •Website 9 , 700 ( 2006 )
William S .
Milwaukee , Wisconsin , USA 5 . 59 Billion USD
•Key People Keith E Wandel ( CEO )
•Subsidiary Buell , M . V . Augsta www . harley - davidson . com
1958 The first rear brakes and hydraulic rear suspensions appear on the Duo-Glide. 1981 On February 26, thirteen Harley-Davidson senior executives sign a letter of intent to purchase Harley-Davidson Motor Company from AMF. By mid-June, the buyback is official, and the phrase "The Eagle Soars Alone" becomes a rallying cry. 1988 The Harley-Davidson Traveling Museum hits the road, displaying memorabilia, classic Harley-Davidson motorcycles and the rich history of the HarleyDavidson rider 1991 Installation of a $31 million state of the art paint facility begins at the York, PA, factory. It becomes fully operational in 1992. The Dyna line of motorcycles debuts with the 1991 FXDB Dyna Glide Sturgis®.
•In 2000,Buell introduces the Blast®, a single-cylinder motorcycle, for the 2000 model year. The Blast receives excellent reviews. It's introduced in tandem with the Rider's Edge® Academy of Motorcycling, a beginner's rider course available through Harley-Davidson and Buell dealerships. •The VRSCA V-Rod® is introduced for the 2002 model year. Inspired by the VR-1000 racing motorcycle, the V-Rod is Harley-Davidson's first motorcycle to combine fuel injection, overhead cams and liquid cooling, and delivers 115 horsepower. •In 2003, more than 250,000 people come to Milwaukee for the final stop of the Open Road Tour and the Harley-Davidson 100th Anniversary Celebration and Party. • •In 2004,Harley-Davidson,s touring and custom motorcycles were grouped into five families: Sportster, Dyna Glide, Softail, Touring, and the VRSC V-Rod. •Harley-Davidson unveils plans for an all-new museum in Milwaukee, scheduled for opening in 2008. Harley-Davidson appoints Beijing Feng Huo Lun (FHL) as the first authorized Harley-Davidson dealer on mainland China.
HARLEY-DAVIDSON’S PRODUCT LINE • •Harley-Davidson’s touring and custom motorbikes were grouped into five families: •CUSTOM BIKES:. ØSPORTSTER Ø DYNA GLIDE ØVRSC V-Rod •TOURING BIKES:ØSOFTAIL ØTOURING • •Sportsters, Dyna glide and VRSC models were manufactured in the company’s Kansas city, Missouri plant. While Softail and Touring models were manufactured in York, PENNSYLVANIA. •
• •These bikes come in different variations:•Sportsters and Dyna Glides- 4 model variations •Softails-6 variations . •Touring bikes-7 basic configurations •VRSC V-Rod-2 basic styles. •In 2004,Harley-Davidson ‘s retail prices of these bikes wereüSPORTSTERS carried retail prices ranging from $6,495 to $8,675 üDYNA GLIDE model sold at price points between $11,995 to $16,580 üVRSC V-Rods sold for $16,895 to $17,580 üThe ROAD KING AND ELECTRA GLIDE Touring models sold at price $16,995 to $20,405.
A firm differentiates itself from its competitors “ when it provides something unique that is valuable to buyers beyond simply offering a low price.” Because differentiation is about uniqueness, establishing differentiation advantage requires creativity – it cannot be achieved simply through applying standardized frameworks and techniques. Some examples are- McDonald’s, BMW, SONY, AMERICAN EXPRESS, HARLEY-DAVIDSON etc. •Differentiation is about understanding customers and how our product can meet their needs.
•Harley-Davidson’s ability to develop its image of ruggedness, independence, and individuality is supported by a top management team that dons biking leathers and ride its “hogs” to owners’ group rallies, and a management system that empowers shop-floor workers and fosters quality, initiative, and responsibility. •Davidson has been particularly effective at achieving differentiation advantage through careful examination of the activities that customers undertake in selecting, purchasing, using, and maintaining their motorcycles. • •Harley creates value for its customers through providing test ride facilities at its dealerships, financing, driving instruction, insurance, service and repair facilities, owners’ club activities, and various sponsored events for Harley riders. • Ø
The Drivers of Uniqueness
§HOG (Harley Owners Group) membership §Chapter Activities §Accessories §Exclusive Events - Club HOG and State Rallies §
HARLEY’S STRATEGY AND IMAGE Harley-Davidson’s turnaround strategy
including improving product quality by adopting Japanese management practices, abandoning a reliance on advertising in favor of promotions at motorcycles rallies, and improving its dealers network to broaden its appeal to new customers. After hearing complaints about dealers from Harley riders at rallies and other bike events, Harley -Davidson conducted a PILOT PROGRAM with two dealers in MILWAUKEE that called the dealers to build clean,
•HOG membership was that new motorcyclists could experience freedom of the open road, much like a Hells Angel. This riding club is different from joining a country club or other upper-income families' club. •Baby boomers purchased Harleys because of a desire to feel “forever young” •In fact, many Harleys competitor have claimed that Harley sells lifestyles, not motorcycles. •On Harley-Davidson’s 2003 Memorial Day centennial celebration in Milwaukee, thousand of leather –clad bikers attended, most of them are professional people…people want to create image. • •Most weekend bikers were quite different from the image they emulated. Hells angles continued to be linked to organized crime into 2003 like drug trafficking, murdering, theft of motorcycles and firearms. Harley-Davidson balanced its need to promote freedom and rebellion, while distancing the company from criminal behavior • • • • •
Political Low taxation from U . S government could encourage Japanese & European competition within the US. Economic Global recession is effecting economies world wide therefore HD has to sustain its position in the market. Social More diverse lifestyles , Creating many Harley Clubs and academies around the globe like Rider ’ s Edge. Technological New materials and other technologies are giving potential for innovative / customized motorbikes .
Legal Different taxation method in different countries especially southeast Asia where HD is facing legal issues due to excessive excise duty . International Volatile international market situation is restricting HD to capture new markets . Environmental Noise and some emissions standards of HD bike is not up to the level of some countries across the globe . Demographic Average purchaser of HD is mid forties married man with household incomes averaging $78600 while only 9 % of consumers are women .
® Tony Gauvin, UMFK, 2005
Value Chain Firm Infrastructure Good Senior Management Has Transformed The Firm But It Remains Small Compared To Global Competitors. HRM Excellent But No Skills or Abilities Outside US. Procurement Very Good Relationship With Streamlined Supplier Base , and New Brazil Operations Can Reduce Cost Further.
Inbound Logistics Operations Good Advance JIT Procedure
Marketing & Sales Services
Excellent Highest Very Good Excellent Excellent In US Level Operations Because of Good Relations & Brand But Weak Outside Shipment Strength
Porter’s 5 Forces
•Honda , Yamaha , Suzuki ( All Japanese ) •Honda mainly competing in U . S •Strategic Alliance between Suzuki and Kawasaki
Harley-Davidson University •Set up in Milwaukee •To train Dealers and Mechanics •17,000 were trained in 2002 •It has 665Iinstructor led and 115 online classes •96 percent company dealer participate
Distribution and Sales Program •In 2003, 644 independently owned dealer •857 dealers in 2009 in U.S. •436 Buell dealers in U.S. in 2003 •76 Independent dealers and 1 Buell dealer in Canada in 2003 •In Japan 161 Independent dealers in 2003
Distribution and sales continue…. •50 dealers and 3 distributer in Australia and New Zealand in 2003 •73 dealers in Asia/Pacific sell Harley and Buell in 2003 •32 dealers in 17 Latin American Country in 2003 •436 and 313 are Harley and Buell dealers in Europe in 2003
PROBLEMS OF HARLEY-DAVIDSON ARE:• •Harley has faced difficulties in luring buyers in the performance segment of the industry. •Heavy Price •Not liked by Echo Boomer •Challenges faces by Buell •In the early 1980s, Japanese competitors' heavyweight motorcycles created a real threat for the HarleyDavidson organization. • •Harley-Davidson had co-developed, reanalysis the customer needs and later purchased Buell to compete with performance category against models offered by HONDA,YAMAHA,KAWASAKI,SUZUKI and lesser known European brands such as MOTO GUZZI,DUCCATI and Triumph.
Problem Continues…… •Long term Production Process •Over availability of models •Fuel Venting problem in Dyna series •Problem with V-twins •Poor Quality Control
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.