Founded : 1903  Founders : William S. Harley, Arthur Davidson  Headquarters : Milwaukee, Wisconsin  CEO : Keith E. Wandell  Revenue : $4.

29 Billion (FY 2009)

$798.8 million(3rd quarter 2010)  Market Share : 33% Worldwide  Competitors : Honda , Suzuki , Yamaha , Kawasaki India Market  Corporate off. : Gurgaon  Registered off. : Barakhamba road,New delhi

HARLEY-DAVIDSON
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."

History speaks
 1901 William S. Harley, age 21, completes a

blueprint drawing.  1903 William S. Harley and Arthur Davidson make available to the public the first production HarleyDavidson motorcycle.  1905 Harley-Davidson motorcycle wins a 15 mile race in Chicago with a time of 19:02.  1918 almost all the Harley-Davidson motorcycles produced are sold for used by the U.S. military in world war 1.

Continue
 1920 Harley-Davidson is the largest motorcycle       

manufacturer in the world. 1922 Harley-Davidson riders sweep all eight National championship races. 1933 an art deco eagle design is panted on all gas tanks. 1936 introduces knuckle head . 1941 production of civilian motorcycles is almost entirely suspended in favor of military production. 1952 launched sportster. 1969 HD mergers with the American machine and foundry company(AMF), a long time producer of leisure products. 1971 A new class of motorcycle, the cruiser, is born .

Continue
 1981 13 executives leveraged buyout (LBO).

Struggled under heavy loans.  1982 the materials as needed (MAN) application is introduced to production. This dramatically lowers the production costs and improves quality.  1992 joint venture with Buell.  2003 more then 250,000 people come to Milwaukee for the final stop of open road tour and the HD 100th anniversary celebration and party.

Competition in Global motorcycle industry

 Rivalry criteria- performance, styling, breadth of

product line, image, reputation, quality of after sales services, price.  Low price by the Japanese company like Suzuki, Honda ,BMW,Yamaha,Kawasaki  Product Range  Dealer's Reputation and knowledge

Regulations and legal challenges

 European parliament and European countries

   

reduce pollutant by 60% after 2003 & more 60% after 2006. U.S. producer are subject to certification by environmental protection agency (EPA). California air resource board (CARB)- new tailpipe emission standards. Safety standards, Health Insurence Quality Standards

Harley Davidson s strategy for competing in motorcycle industry

 After Leverage Buyout, repositioning began  Focused on product quality  Introduced pilot program  Formation of Harley Ownership Group  Created an image of lifestyle for biker  Associated itself for the law abiding riders  Introduced Buell model to lure young bikers  Establishment of Harley-Davidson University

Tarnish Brand image of HD

 HD bikers Daytona & Sturgis Rally in late 1930 s  Indecent behavior, public exposures, drunkenness, etc  Rowdy, rebellious, outlaw image of bikers were    

formed Different such small clubs of rowdy bikers formed across US who rode only HD(Hells Angels, Sturgis ,etc) Honda leveraged the tarnishing image 1969 Movie Easy Rider portrayed bikers as less villainous Print ads and campaigns help improved the image of HD riders

.
Lower cost Differentiation

Broad target

Cost leader

Differentiation

Narrow target

Cost focus

Differentiation focus

DIFFERENTIATION STRATEGY TANGIBLE : Low tech , premium priced, high quality, heavyweight engines, innovation , Expanded line of exciting motorcycles(standard, performance, custom, touring) INTANGIBLE : 1. Aura created of distinct image, lifestyle & adventure- Rugged American Individualism 2. Strong Brand Identity

The SWOT analysis

Strengths  Heavyweight engine  Innovative design & product features  Strong Brand Equity  Financial Strengths  Strong brand loyalty and HOGs  Strong distribution network Weaknesses  Over leveraged financial position  Competency only in Heavyweight motorcycle segment  Maintaining the cost differential between low-cost competitors and HD  Lack of appeal to young riders

Swot continued .
Opportunities
    

The international heavy weight market is growing and is almost as the U.S. heavy weight market. Alliances with other automobile manufactures are possible. Market share increasing in Europe and Asia for the two years. Increasing demand in U.S. markets for bikes. Product and services expansion

Threats
     

Harley ongoing capacity restraints caused a shortages supply and a loss in domestic market share in recent years. Baby boomers who are the potential buyers are aging The European Union s motorcycles noise standard are more stringent then those of environmental protection agencies in the U.S. and increases environmental stand. Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified. Shift in buyer need and tastes. Cost could become expensive from international importing- for example in India 60% tax on total cost for importing an automobile and 30% road tax.

And the great story on Earth continues it s majestic journey .

Thank you