Professional Documents
Culture Documents
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Harley-Davidson,
Incorporated: An overview
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
A Case Study
Presented to the
Faculty of the College of Accountancy
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Presented by:
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
MANINGDING, JOSHUA R.
RAMOS, ABEGAIL M.
SENTING, GELOYZQEN M.
TENORIO, KARRAH MAE M.
BSA3-1D/10:00AM-11:30AM
December 2020
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
prepared and submitted by AMPER, JHAZRYL ANN B., ASMA, ELSIE C., BERNAL,
R., RAMOS, ABEGAIL M., SENTING, GELOYZQEN M., TENORIO, KARRAH MAE
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
ACKNOWLEDGEMENT
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
The researchers, would like to give their sincerest gratitude to the following who have
supplemented them knowledge, courage and support throughout this period which has helped the
management of this work.
This research will not be finished without the persons behind their efforts. We would like to
give our sincerest gratitude to our Almighty God that always give us the knowledge and wisdom
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
that we need to accomplish such work. Of course, to the College of Accountancy in giving us the
permission to conduct our study.
The researchers want to give thanks to our parents who are always there to support us in
every step that we take in this research. Lastly, our professor, Professor Jharam Arambulo
Tolentino & Professor Dante Narsino, who led us to the right directions to have this one and who
kept on guiding them for the altruistic selfless dedication and skillful pointers and teachings
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
extended to them and for the understanding, care, and concern to them. The researchers are truly
grateful for the support and patience you have given to them.
THE RESEARCERS
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
DEDICATION
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
This humble piece of work is gladly dedicated to our family especially to our ever
supportive parents who untiringly support us in our pursuit for knowledge and in our dream of
becoming successful professionals in the near future.
We would also like to share this work with our friends who stayed behind us and
supplemented us with more courage and support during our journey for this case study and have
brought us up every time we are faced with the hardships of life, most especially as college
students.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
We would also love to dedicate this undertaking to our knowledgeable and supportive
professors who guided us in the conduct of this work and who are continuously sharing not only
their knowledge but also words of wisdom to add inspiration and courage in our academic works.
Above all, we dedicate this piece of work to the Almighty God, for in him we got our
strength and knowledge during the whole time of doing the research work. He is the reason of
our persistence and through him we are guided in everything we do.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
THE RESEARCHERS
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
TABLE OF CONTENTS
Page
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
ACKNOWLEDGEMENT …………………………………………………………..
DEDICATION ………………………………………………………….
ABSTRACT …………………………………………………………..
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
CHAPTERS
I. INTRODUCTION …………………………………………………………….
History ……………………………………………………………………
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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Perez Blvd., Dagupan City, Pangasinan
V. RECOMMENDATION …………………………..………………………….
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College Of Accountancy
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
ABSTRACT
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Centeno, Marisol C.
Frias, Ralyn F.
Maningding, Joshua R.
Ramos, Abegail M.
Senting, Geloyzqen M.
Tenorio, Karrah Mae M.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
CHAPTER 1 | INTRODUCTION
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Harley and Arthur Davidson at Wilwaukee, Winsconsin in 1903. William S. Harley began to
make a blueprint of an engine into a bicycle in 1901. After 2 years his colleague Arthur
Davidson began to work on a motorcycle in 1903. They produce and sell a well-known
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
architecture, and superior quality. Harley and Davidson Brothers built their first factory on
Chestnut Street later known as Junot Avenue and up to now it’s the current location of Harley
Davidson’s corporate headquarters. Years later the company increased its production to 150 to
450 motorcycles per year the company was officially incorporated in September 1907. They also
began selling their motorcycles to police departments around this time a market that has been
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
important to them ever since 1907, the beginning of World War I in 1914 Harley-Davidson
company increased production from 450 motorcycles to 16,000. 284 machineries are used in
production, Harley-Davidson the king of motorcycle production in the world during the First
World War.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
A full range of funding solutions and insurance programs and services is provided by
Harley-Davidson Financial Services. It provides wholesale and retail finance to distributors and
clients, Insurance, Extended Service, Plans for Defences, and Program for Credit Cards. Like
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University Of Luzon
College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
This pandemic their sales decline at 27% in the quarter and it causes them to temporary
closure of dealership this spring. Harley-Davidson motorcycles are sold through a worldwide
network of individual retailers, most of which primarily sell Harley-Davidson merchandise and
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College Of Accountancy
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offer world-class customer support and expertise. It has more than 1,400 Harley-Davidson
dealerships globally that are privately owned. Harley-Davidson dealership staff are the ones who
turn up every day to give our amazing customers unrivalled experiences. Our dealers are the
brand's ambassadors who build life-long encounters and bonds. We know that motorcycling is
not for all but we agree that Harley-Davidson is for everyone who profoundly appreciates the
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
true ideals that we offer. Our emphasis is on building an inclusive and growing rider culture that
appeals to new and current riders, and with an unambiguous consumer focus, we aspire to have
an H-D experience.
Motorcycle is important to our work and to our business transaction to make you fastest
where you go. This is important most of the time to the place where always have a traffic, like
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
here in the Philippines. Other people who have important matter to go thru they always use the
The findings to this study can be used as a guide to improve and innovate how Harley-
Davidson Company going through as to their new customers and how they adopt to the changes
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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College Of Accountancy
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1900s
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College Of Accountancy
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In 1903, William S. Harley and Arthur Davison would make the first Harley-Davidson
motorcycle available to the public. With a 3-1/8 inch bore and 3-1/2 inch stroke, the bike was
designed to be a racer. A 10 x 15-foot wooden shed with the words ‘Harley-Davidson motor
company’ crudely screwed on the door was the warehouse in which they worked. Arthur’s
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
In 1904, Chicago, IL's first Harley-Davidson Dealer, C.H. Lang. Opened for business and
sells one of the first three Harley-Davidson bikes ever produced in history.
The first Harley-Davidson Factory was erected in Milwaukee in 1906. On the 17th of
September, 1907, Harley-Davidson Motor Co. was incorporated the next year.
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College Of Accountancy
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Contest in 1908, the Harley-Davidson motorcycle won Walter Davidson a perfect score of 1,000
points. Three days later, Walter set a high of 188.234 miles per gallon for the FAM economy.
This allowed the incredibly hard motorcycle of Word of Harley-Davidson to spread rapidly.
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College Of Accountancy
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Harley-Davidson replaced their 'three-horsepower motor' with a new model in 1909. This
was the first two-cylinder V-twin powered motorcycle that, with its "Potato potato" engine, the
classic deep rumbling sound, became the signature emblem of Harley. It generates seven
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College Of Accountancy
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1910s
It was in 1910 that Harley-famous Davidson's "Bar & Shield" logo was first used.
Another workhorse engine was born in 1911, dubbed the "F-head" engine that Harley-Davidson
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College Of Accountancy
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The first sales outside the U.S. were registered in 1912. Harley-dealer Davidson's
2 years later, in 1914, on their bikes, Harley-Davidson launched sidecars made available
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
In 1916, as the oldest continuously publishing motorcycle journal in the world, The
In 1917 and 1918, in favor of the World War I war effort, Harley Davidson manufactured
and sold nearly one-third of its motorcycles to the U.S. military. They opened the Quartermasters
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Davidson motorcycles. Service School later on. Corporal Roy Holtz was the first American to
1920s
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College Of Accountancy
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milestone. Fresh Harley-Davidson bikes can be bought from over 2,000 retailers worldwide in 67
countries.
Gas tanks on both models now have the underlying appearance of a distinct teardrop
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
as the flathead, which would be so reliable that versions of it were available as late as 1973.
1930s
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
makers that had existed since 1910 to be precise, were now gone except Indian (Hendee
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Japanese motorcycle industry was established in 1935. The Rikuo motorcycle from the Sankyo
In 1937, Harley-Davidson set the date when its motorcycles will be customized and
modified. The first WL models were made. A new 136,183 mph land speed record was the
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
product of the improved 61 cubic inch Harley-Davidson overhead valve-driven motorcycle that
was built last year, 1936, called the "EL" with a "Knucklehead" nickname. The 45 cubic inch
engine variation of Harley-Davidson motorcycles defeated the record for 45 cubic inch engine
1940s
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College Of Accountancy
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The 1940s began with another World War, with the production of civilian motorcycles
almost completely halted for the war effort in favour of military productions as America plunged
In1943, for excellence in wartime production, Harley-Davidson won the first of its four
Army-Navy "E" awards. For Harley-Davidson, this is a vital moment as many American
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College Of Accountancy
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servicemen get their first exposure to Harley-Davidson bikes, something they will not forget
In 1946, one of the best racing motorcycles ever produced was launched by Harley-
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College Of Accountancy
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1950s
attractive emblem featuring a "V" in honor of the engine that had taken the company so far. Only
on the 1954 model's fenders is this medallion version of this logo mounted. Harley-exclusivity
Davidson's imagines that its products are all remembered as unique and historical as its name.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
symbol of Harley-Davidson. It has an overhead valve engine of 55 cubic inches and was
1960s
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College Of Accountancy
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Eight straight year of victories at the Daytona 200, all riding Harley-Davidson KR
models, in 1963.
In 1969, AMF (American Machine and Foundry Company) acquired Harley, which
resulted in overproduction and a major decrease in quality, eventually causing financial losses
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
1970s
In 1971, The XR-750 racer is launching a new Sportster-base motorcycle, taking into
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College Of Accountancy
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customization craze, which incorporates the sporty front end (similar to the XL series) with the
FL series frame and powertrain. The birth of a new class of motorcycle, the cruiser.
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College Of Accountancy
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In 1972, the new more powerful, more durable XR-750 aluminum alloy is making its
debut. In the next decades of tree, it becomes the dominant dirt track racer. Dirt track racer Mark
Brelsford wins the AMA Grand National Championship on the XR-750 this year.
In 1973, when all manufacturing operations are transferred to a new 400,000 square foot
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Maliwaukee and Tomahawk remain. Engine production starts at the Milwaukee Capitol Drive
Factory.The first of four consecutive years of the Bentley AMA Grand National dirk Track
Racing Championships.
In 1975, Gray Scott won. The following 3 years are won by Jay Springsteen, a racing
legend.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
In 1979, Harley-Davidson had introduced the FXEF Fat Bob, "Fat" because of the dual
1980s
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College Of Accountancy
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In 1980, Harley-Davidson debuts the FLT with its vibration dampening, rubber-isolated
drivetrain and unique trailing front fork. The FLT also debuts an engine and five-speed
In another bold styling and engineering move, Harley-Davidson releases the Heritage
Softail in 1986.
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College Of Accountancy
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In 1988, the springerfront end returns in the FXSTS Springer Softail. Also introduced is
the Sportster 1200. Harley-Davidson celebrates its 85th Anniversary with a homecoming in
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University Of Luzon
College Of Accountancy
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1990s
Upon its introduction, the FLSTF Fat Boy almost instantaneously became a modern
In 1991, the installation of a $31 million state of the art paint facility begins at the York,
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
With the launch of the VR1000, a dual overhead cam, liquid-cooled motorcycle, Harley-
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2000s
The FXSTD Softail DeuceTM was introduced to the immediate delicacy of riders and
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
For the 2004 model year, rubber engine mounting, a new frame, and wider rear tire are
offered for the Sportster family models. Some Sportster models receive a redesigned gas tank.
In 2006, the first of the 6-speed transmissions are made available on 2006 model year
Dynatm motorcycles. Also joining the DynaTM family is the FXDB/I Street BobTM.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2010s
In 2010, the XL Forty-Eight is introduced, recalling the raw, custom Sportsters of earlier
days.
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rider to receive a factory-built custom motorcycle. One year later, Harley-Davidson added to the
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College Of Accountancy
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In 2014, Harley-Davidson revamped its New Rider’s Course with the launch of riding
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
In 2017, the Harley-Davidson XG750R motorcycle will be the only bike raced by the
Harley-Davidson Factory Flat Track Racing Team. The new flat-track will replace the Harley-
Davidson XR750, the most successful flat-track racing motorcycle of all time. With a custom
chassis purpose-built for flat track, the XG750R flat tracker is powered by a race-modified,
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
liquid-cooled, fuel-injected 750cc Revolution XTH V-twin engine originally engineered for the
In 2018, the largest product development project in H-D history culminates in the all-new
Softail models for 2018. The key improvement was the change to a monoshock rear suspension
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
motorcycles, and it's no big surprise that its logo is so well known. Indeed, in its own right, the
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College Of Accountancy
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company's logo is very significant, with its licensing and the Harley-Davidson name responsible
for $40 million of its net sales in 2010 alone. The Harley-Davidson reflects independence in its
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
Even though the very first Harley-Davidson motorcycle was officially assembled in 1903,
the first iteration of the distinctive 'Bar and Shield' logo of the company was created in 1910.
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
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Harley-Davidson celebrated its 50th anniversary in 1953 and issued this complex new
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College Of Accountancy
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logo design to commemorate it. The 'V' was used to commemorate the type of engine so widely
used in the bikes of the brand, although on the front fenders of the 1954 models a medallion
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College Of Accountancy
Perez Blvd., Dagupan City, Pangasinan
In 1965, this iteration of the classic logo, perhaps the most iconic, was unveiled. While
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this logo has remained fairly traditional, each acceptable Harley-Davidson dealer appears to have
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commissioned to mark theirs either. It debuted as part of a number of various styles of Harley
products in 2003, with the unmistakable Bar and Shield emblem nestled between a pair of wings
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College Of Accountancy
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The 105th anniversary logo of Harley-Davidson displayed some similarities to the 2003
edition in that it also featured wings on either side of the traditional symbol of the company. The
wings bent upwards in this 2008 version, however and were more or less enclosed inside a
circular border bearing the dates. For the Dyna Fat Bob, Rocker and Rocker C, Limited Edition
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College Of Accountancy
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The Harley Owners Group, colloquially known as HOG, uses the following rather
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impressive logo. Created in 1983 in order to build and maintain lasting relationships between
Harley-Davidson and their customers, you can find HOG chapters all over the world.
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Harley-Davidson Incorporated started operating since 1903 and with the introduction of new
trends within the motorcycle industry, the company also needs to catch up to the changes in
perspective of customers. This research attempts to give recommendation to the market crisis
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1. What are the possible solutions that can Harley-Davidson implement in order to attract
3. How can Harley-Davidson attract and successfully take over the taste of new generation?
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4. To be able to come up with possible ways to adjust with different changes in our
environment.
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Inc. play a big role of a motorcycle company that makes it a trusted and worth spending for. The
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findings of this study will determine the benefits of the Harley Davidson Inc. to specify its
customer satisfaction. The main target of Harley-Davidson’s Incorporated is those people who
love motorcycle. One advantage of Harley-Davidson’s Inc. that will surely love by its customers
well, Harleys is heavy motorcycles. It’s heavy that the lightweights of the road can easily beat
them in speed. That said, all that extra weight comes with advantages of its own – the steadiness
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of a Harley-Davidson is amazing as its longer rake angles when it comes to cruising, nothing
beats a Harley.
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And if you have a Harley Davidson Motorcycle it feels like you are in exclusive rides of
yours. Customer's will definitely love this motorcycle for its origin and also very useful specially
today's generation, riding a motorcycle will save lot of time to spend with
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College Of Accountancy
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This analysis of the study focused on the impact of new generation to Harley-Davidson’s,
Inc. in the Philippines where it’s affect their domestic sales and its perceived effect on
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economics, social and the quantity of produce. The researcher chosen this area of concerned
because motorcycle industry has a great contribution in the revenue generation and development
of the Country.
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To validate further this study of the Harley-Davidson’s, Inc. change sales during the shift
old to new generation in the Philippines. The study was focus on the awareness and effects of the
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CHAPTER II | ANALYSIS
INTERNAL ANALYSIS
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The Harley-Davidson’s current mission statement is “We fulfill dreams through the
experiences of motorcycling, to provide the motorcyclists and the general public an expanding
line of motorcycles and branded products and services in selected market segments.” Harley-
Davidson’s fulfilling dreams through motorcycling and expanding line of products and services
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business. For example, the company uses dream fulfillment and experiences of motorcycling as
basis for attracting customers to penetrate markets. Harley-Davidson’s mission statement also
emphasizes the significance of expanding its product mix. Moreover, this mission statement
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customers in the global motorcycle market. A strategic objective related to this mission statement
is product diversification, which supports expanding the company’s lines of products and
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Ever since it’s started, Harley-Davidson has been showcasing some of the trendiest
motorcycles in the industry, making it the most demanded brand in the world. The company
remains well inform with the needs of its customers, and this has enabled it to stay at the
pinnacle of many other competitors in this industry. Other than outdoing other brands, there is
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much more that comes with Harley-Davison’s motorcycles that make them a darling for any bike
lover. The customizations and accessories that are rider-friendly, together with their affordability
are few of the many additional factors that make this company unique.
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balance stakeholders’ interests through the empowerment of all employees to focus on value-
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added activities.” This vision statement reflects the company’s values and business strategies.
1. Action-oriented business
2. International scope
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4. Employee empowerment
5. Value-added activities
The mission and vision statements by Harley-Davidson, Inc. show us on how updated
this corporation is when it comes to bikes and related technology. The company has an
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experience that stretches as far back as 1903 when it first opened its doors to start designing
motorcycles. Since then, Harley-Davidson, Inc. has maintained unparalleled standards in this
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industry across the globe by always operating within the provisions of its mission and vision
statement.
while a corporate mission statement out-lies the strategic methods that would drive the
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organization towards the future position. In this case, the Harley-Davidson vision statement is all
about satisfying the needs of all its stakeholders including the customers.
Core Values
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inspire teamwork, individuality, and diversity.” To survive the various economic turmoil and the
organizational culture. With the help these values as the guiding principles, Harley-Davidson has
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Despite the challenges in the industry and issues within its organization, Harley-Davidson
maintains strengths that support the continuation of its business. This element of the SWOT
analysis identifies the internal strategic factors that contribute to the automotive company’s
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capabilities for growth and development. The company’s strengths are primarily linked to brand
image and the chopper motorcycle market culture. The following are among the main strengths
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Harley-Davidson has one of the strongest brands in the motorcycle market. This brand
image is especially notable because of the custom/chopper biker culture, which is strongly
associated with the company. Harley-Davidson’s corporate culture supports and reflects such a
biker culture. This organizational culture maintains a stable base of loyal customers who exhibit
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pride in using the company’s motorcycles, and identify with the business and what it represents.
In the SWOT analysis context, this strength helps Harley keep a stable market share and stable
revenues. In addition, more than a century of custom design and production experience creates
the company’s strength of expertise in the business. The SWOT analysis framework views this
internal factor as a capability and competitive advantage that protects Harley-Davidson from
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other firms, especially low-cost producers. For example, the company’s designers are experts in
motorcycles. In this element of the SWOT analysis, Harley-Davidson’s strengths ensure business
stability despite aggressive and low-cost competitors. These strengths also help shield the
business from new entrants that imitate the company’s designs and strategies in the chopper
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market. Such strengths facilitate profitability and effective product design and manufacturing,
which are key factors in Harley-Davidson’s corporate vision and mission statements.
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Harley-Davidson’s weaknesses are based on the current limited focus and reach of the
business. This element of the SWOT analysis tackles the internal strategic factors that prevent
the motorcycle company from growing, expanding, and maximizing its revenues and overall
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from reaching more market segments. For example, the company focuses mainly on chopper-
type motorbikes. In the SWOT analysis framework, this internal factor limits the company from
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maximizing its potential revenues, such as from the production and sale of other automotive
products. Harley-Davidson is also weak because it generates the majority of its sales in North
America. In motorcycle markets outside North America, the company has small, insignificant, or
non-existent sales. This SWOT analysis views such an internal factor as a strategic challenge in
growing the motorcycle business through multinational operations. In relation, the automotive
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company has a limited supply chain strategy for supporting its multinational production, with
suppliers focused mainly on supporting existing operations. This internal strategic factor
hampers Harley-Davidson’s potential global expansion despite the strengths enumerated in this
SWOT analysis. The motorcycle company needs to adjust its strategies to remove such limitation
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and gain more revenues from sales in more markets worldwide. In overcoming the weaknesses in
this element of the SWOT analysis, Harley-Davidson’s marketing mix (4Ps) reinforces business
capabilities, especially in maximizing sales despite limitations in product offerings and market
reach.
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Performing an external audit can help the company to identify the threats and
opportunities that their company will encounter. And in responding to it, they need to formulate
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a strategies that will apply to it. In Harley Davidson company, they have an opportunity to
expand their business globally. This expanding may result in increase of revenue and increase in
customers. They have a chance to introduce their products to different people in different
countries. They just need to formulate a better strategies to take advantage to this opportunity.
They also need to make strategies to minimize their threats. And these threats are their new
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competitors and the change in consumers taste. As time goes by competitors are growing, so
strategist’s should be alert to the entry of new competitors. The following are
Aggressive competition
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Technical innovation
The change of consumers taste can also be a threat to a Harley Davidson company. A taste of
one person might be different from one another. For example a young person might have
different taste from adult person. Or a man have different taste from a woman. In this situation,
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innovation might help the company to satisfy the wants of people. Technological innovation is a
major business threat. We are in the heart of a business revolution as profound as the agricultural
or industrial revolutions. The way that people work is changing faster and more radically than it
has since people left the fields and headed to factories for the first time. Technological
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innovation is the business threat that creates the most valuable new companies and dismisses
can result in achieving competitive advantage. Harley Davidson Inc. have many competitors like
Polaris Industries, Honda Motor Company Ltd., Suzuki Motor Company and others who try to
enter in motorcycle business, a competitors which is also one of the threats for Harley Davidson
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Inc. . So in order to overcome it, Harley Davidson should obtain competitive advantage over the
rivals by developing effective strategies to respond to the opportunities and threats, discovered in
performing external audit. The following are among Opportunities that affect business growth
Davidson:
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Harley-Davidson is making significant changes to its global strategy, but it’s remaining
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During this time of pandemic, internet users are increasing. And it gave Harley Davidson Inc.
an opportunity to introduce or promote their products more faster. To show what they can offer
to their customers. To persuade people to purchase. Most of people are spending their leisure
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time in using social media, some visit web pages, so there is a chance that a lot will also see the
product of Harley Davidson Inc. if the company improved in using this platform to promote their
product. Harley Davidson’s products have high quality that makes customers loyal to the
company. And to obtain high quality products they need to spend high amount in their materials,
to be sure that it will result in high quality. The raise in the cost of these materials they used to
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produce their products can be one of the threats they should consider. These threats have high
effect to their business. It can affect the quality of products, price of products, revenue, and their
image to people. The company must appreciate their customer, e.g. you must be satisfied your
customer to your product how it quality, affordable and friendly nature. So that you can maintain
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your relationship with your customer. We keep on target with synchronized plans and make our
External analysis is a simple strategy, but powerful tool, to help you to develop your
business strategy, whether you’re building is a start-up or guiding an existing to your company.
The truth is, focusing on these threats could become an obsession, it might even become a full-
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time job! Our secret is not to let it bother us. Of course we keep our fingers on the pulse but we
find looking at new threats pointless, we focus on what we’re doing right and improve each of
them bit by bit. Sometimes you can turn a threat into an opportunity, such as a new technology
that may displace one of your key products but also provides an opportunity for
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new product development. Turning threats into opportunities can be done but it requires the right
mind-set, willingness to take risks and a team passionate about delivering results. As a solution,
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gather people from different parts of your company and make sure that you have representatives
from every part or department you will gather. You will find that different groups within your
company will have entirely different perspectives that will be brainstorming meeting and giving
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them some freedom to give their individual idea to solve the threats. Some other things that you
can achieve your goal in to your business is to take care of your employees because they are one
Also motivate your staff, so that they can improve their jobs and make it easier for them
to enter to your company every day. As a business your name needs to be branded in various
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businesses to attract consumers. To sum up, with business it’s your own success that you need to
focus on, not the strengths of other operators in the marketplace. Drown out the noise created by
your competitors and instead keep focused on the objectives you can achieve from within. It’s
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Analysis is a strategic tool to analyse the macro environment of the organization. PESTEL
stands for - Political, Economic, Social, Technological, Environmental & Legal factors that
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macro-environment:
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reach through online media. Harley-Davidson also has better patent protection
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Harley-Davidson must address the economic aspect of the motorcycle market. The
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stably grow its business in its core markets, the company has opportunities for rapid growth and
expansion in some high-growth developing countries where there is demand for chopper
motorcycles. On the other hand, the stable credit accessibility could support competitors, which
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threaten Harley-Davidson. The company can capitalize on its economies of scale to protect its
business from competition in the remote or macro-environment. Social Factors that Impact
Harley-Davidson, Inc. One of the factors impacting Harley Davidson’s Operation includes
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included the massive changes in social trends. Society’s culture and way of doing things impact
the culture of an organization in an environment. Shared beliefs and attitudes of the population
play a great role in how marketers at Harley-Davidson, Inc. will understand the customers of a
given market and how they design the marketing message for Recreational Vehicles industry
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consumers. Social factors that leadership of Harley-Davidson, Inc. should analyze for PESTEL
analysis are -
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Entrepreneurial spirit and broader nature of the society. Some societies encourage
Leisure interests
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Technology is fast disrupting various industries across the board. Transportation industry
is a good case to illustrate this point. Over the last 5 years the industry has been transforming
really fast, not even giving chance to the established players to cope with the changes. Taxi
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industry is now dominated by players like Uber and Lyft. Car industry is fast moving toward
automation led by technology firm such as Google & manufacturing is disrupted by Tesla,
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A firm should not only do technological analysis of the industry but also the speed at
which technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
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Environmental factors that impact significantly on motorcycle industry includes Political trends,
Sociocultural changes and the economic external factors. Harley Davidson ensure the long term
profitability for external factors particularly to the environmental factors and to determine the
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Climate change.
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Legal framework and institutions are not robust enough to protect the intellectual
property rights of an organization. A firm should carefully evaluate before entering such markets
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as it can lead to theft of organization’s secret sauce thus the overall competitive edge. Some of
the legal factors that Harley-Davidson, Inc. leadership should consider while entering a new
market.
Discrimination law
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First what is Porter's Five? Porter's Five was developed in 1979 by Michael E. Porter of
Harvard Business School. It is created to assessing and evaluating the competitive strength of the
company and position of a business organization. How could this Model’s attracts customer in to
your market against your competitor. This Porter’s Five can help how these five competitive
forces influence profitability and develop a strategy for enhancing their company.
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The bargaining power of customer in Harley Davidson Incorporation is high. The reason
it’s because in our new generation there are people who actually seeing the capability of the
product, it’s the price it self. There are substitute products with lower price compared to Harley
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Davidson products. Not all people are willing to spend large amount of money for a thing that
have a better substitute. Specially today that we are facing a pandemic crisis which result in
struggle to earn money and thinking to choose substitute to save than spending it to luxurious
thing. Some buyers become wise in choosing. If the customer has knowledge about the price,
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quality and other relevant information about the motorcycles of Harley Davidson and the
possible substitute products, he/she may use it to his/her advantage. He/she can influence the
price, warranty, and revenue of Harley Davidson Incorporation if he/she gained power. And as
for Harley Davidson, knowing that the customers can easily change to a substitute product, they
will consider if they can tolerate the request of customers. Satisfying the needs of customers is
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important for Harley Davidson Incorporation, especially today that the sales are declining.
Satisfying customer's needs are really important when it comes to Harley-Davidson. Despite
having customer loyalty, pricing will always be somewhat of a factor. Individual buyers have
high bargaining power as they have a choice in switching between the products offered in the
industry. Individual buyers have sufficient bargaining leverage for influencing the terms of the
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sale in their favour. Other Japanese manufacturers, such as Honda and Suzuki, offer a cheaper
price than Harley-Davidson. Harley-Davidson has differentiated their products from Japanese
product lines but price will always be a factor when purchasing a motorcycle.
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Motorcycle is known today’s important to does people who have a work and at their own work
in the place where there is traffic and also to our new generation, they are fun to exploring so that
most of the time they are always buying the motorcycle. Now a day's our equipment to be use in
any form of business with technology and without there is always a high price that do not match
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the quality of a device so Harley Davidson need to be careful in purchasing their materials will
use in their products. This means that the suppliers have low control on the distribution and sale
of their products to companies. That’s why Harley Davidson has a low or weak bargaining power
of suppliers.
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Some major competitors of Harley Davidson are Triumph Motorcycles Ltd., Ultra Motorcycle
Company, Viper Motorcycle Company, Honda Motor Company Ltd., Suzuki Motor Company,
and Polaris Industries. As we can see there are already too many competitors in motorcycle
business, one of the reasons why intensity of rivalry among firms increase. They are competing
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in quality of their products, the price, products capabilities and features, warranty and others.
Some competitors of Harley Davidson are also active in innovation of their products just like
Polaris Industries. Some also provide great experience for riders just like Triumph Motorcycles
Ltd. And some have also strong brand name. There is strong competition among these firms, so
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it is important for the company to possessed and maintained competitive advantage now that
There is a chance of potential entrance of new competitors, but new competitors will experience
difficulties before reaching the same status of Harley Davidson Incorporation. They may
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encounter undesirable situations before they become one of the strongest competitors of Harley
Davidson, so they need courage to take the risk and enough resources to use. If new competitors
want to compete to Harley Davidson’s they need to provide high quality with lower price than
Harley Davidson to encourage people to buy and they need high capital to operate this kind of
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business. Low price that may brought loss to the new competitor because Harley-Davidson
incorporated have strong brand image and customers loyalty. And of course, that company will
not allow new competitor who will have potential to become one of the strongest competitors, so
their strategist's will do their job, to identify and counterattack that potential new competitor as
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early as they can. And during this pandemic it has a low chance that new competitor will enter
this kind of business because it required high capital and people are struggling in having the
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The potential substitute of Harley Davidson heavy weight motorcycle is sports bike. The
Motorcycles don't take much of one’s income; customers often switch to the substitutes if price
increases and purchasing a cheaper substitute becomes their better choice. But the facts that
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Harley-Davidson has a strong image of a lifestyle, the substitute products are no match to
Harley-Davidson products. These will way of the customers from buying substitutes because it is
just not the same. Like any automobile company, Harley Davidson industry also has large
manufacturing facilities and equipment’s. The threat of new entrants is very low because the new
entrants have brings some drastic change in the infrastructure of motorcycle building as the
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industry is going towards maturity. New Entrants would have to have a large amount of capital
and would need to spend tons of money in advertising and promotion to receive the same amount
of brand recognition and customer loyalty that the powerhouses company Harley Davidson has
already gained. And retailers, without the brand recognition and customer loyalty of the new
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In creating case study there is my method that we considered in this work that are survey
method, existing method and observation method that will support our study. In our situation it is
difficult to gather information but existing method has a big contribution in this study. Even in
our team were not seeing each other to took about this case study because of this pandemic the
existing method is one of our guides to gather about the company we studied. We’re very
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thankful to internet that we are easily access what information we need. There are many different
research methods you can use to collect data on your subject. Case studies tend to focus on
qualitative data using methods such as interviews, observation and analysis in the newspaper
articles and in the internet. But now we use existing data search the information about Harley
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Davidson. This case study is concerned with the problems of Harley Davidson Incorporation on
This study aims to formulate solutions that can help the company. This chapter presents
the methods and procedures used by researchers in the case study. In terms of methods,
qualitative research is used. In order to formulate solutions that can help Harley Davidson to
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their problems in business, we gather or collect information that can help us in solving the case.
We search and read information from different sources that is relevant to our case.
The Harley-Davidson motorcycle is famous for its iconic and handmade styles. The
company's mission in this strategic decision-making area of operations management is to help its
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brand with available capital. Harley-Davidson motorcycle quality and high-end chopper style are
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team building or employee training and empowerment are not just words out of a management
book for Harley-Davidson. With the growing global economy, companies are looking for ways
to improve their market share. Many excellent firms have learned how to beat their competitors
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Harley-Davidson is one of those excellent companies whom had challenged traditional ideas. We
intend to show through this case study that any company can follow Harley-Davidson's
techniques and lead them to excellence. As with anything in life, recognizing the problems to
any given situation is only half the battle. The development of methods for improvements and
gaining company wide support for implementation was the key. The first accomplishment was
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for management to learn the importance of relationships. Strong relationships with workers can
aid in the advancement of new company practices. The three M's to Harley's success
(management, marketing, and manufacturing) can be implemented into any company. The key is
to understand that all companies are different and the specifics which may have worked for
Harley may not work for another. However, the concepts will be the same. If management can
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grasp the ideals that Harley thrives on, today, any company can learn to compete in this newly
• The company could enforce mandatory monthly internal controls from members of
management and they can keep the newly created IT department using a vendor's control model.
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• Harley Davidson could implement COBIT and use it as its main controls tool for better
results.
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• The company could just stay where they are without implementing any new control
framework.
• The organization may purchase internal control program from one of the large software
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• Harley Davidson could hire an outside company to enforce compliance regulations within
the organization.
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• By keeping the new IT department internal controls will be enforced to get done monthly
by management. The IT team will be ensuring that controls are completed correctly and the
• The organization does not need to do anything and it can stay where it is.
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• Purchasing IBM program will mean that all departments will need to support just as it
• An outside company could require more cost than having their own IT department.
Whichever alternative the company chooses, they need to be disciplined and consistent with
making sure that all functional areas adopt the new structure.
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Responding to the taste of new generation are challenging for Harley Davidson. These
parts of population have a large impact to sales of a company, so it must resolve fast. An
effective decision and actions should be implemented. Some of the alternative courses of action
that Harley Davidson can do are to adapt to change and be more innovative. Sticking to what
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they have now may not help the company to improve its business, especially today that change is
rapidly happening in our surroundings. They cannot avoid change, so it is better that the
company will become the best at adapting change, so that the company will maintain the
competitive advantage they have. Being adept at adapting may help the company to expand and
to achieve success. Improving process of innovation of the products can also contribute to the
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improvement of the business. New generation wants a product that will suit to their age and taste.
But most of the products of Harley Davidson give satisfaction to most of the old generations
only. It needs innovation so that the new generation will also satisfy to their products and they
will not change to a substitute product. Targeting and providing satisfaction to new generations
also and not only focus to the satisfaction of old generations can help the business to be more
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profitable. By identifying the views of people about their business might help the company to
They should introduce new products, slashing prices, increasing market segments and
innovation
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Advantage: this would ensure maximum satisfaction and value of the customer also
it may sustain the company's sales and continuing patronage of costumer on their
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I there for conclude that the best solution to the problem is that Harley Davidson
incorporated should develop and produce multi product line for different income
class. They should consider the segmentation, targeting and positioning of their
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responsiveness in order to meet not only the customer's need and satisfaction but also
the profit and the company's vision. Continue and innovate their existing products
also they should train and develop their workers for them to adapt in modern changes
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and incorporate it on the products and services. Invest more on R&D which is one of
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Harley Davidson needs to conquer the competitors to compete and construct new terms
and conditions to achieve the objectives. To adhered the policy of the company and lead the way
to make a better organization that will focus to external and internal controls.
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Limitation to implement the new control framework of the company to make it reliable
resource to advocated the statement problem. You need to build a new generation of consumers
ADVANTAGE
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DISADVANTAGE
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In the future, it would provide them with more chances after giving promising outcomes.
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Customers can see the performance of motorcycle goods and respond to their demands
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CHAPTER V | RECOMMENDATION
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By developing a range of affordable and modern entry models, Harley Davidson could
win over the new generation of riders. In addition, Harley Davidson can extend its dealer
network and promote on social media their new models. It is advisable to follow the marketing
mix:
PRODUCT
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• Together with the young target groups, the creation of new models
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personalized emergency data app, chat feature and personal templates for
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PRICE
PLACES
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• Improving E-Commerce
PROMOTION
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The traditional brand, which has influenced the baby boomer generation for decades, is
making a major effort to inspire its products to the new generation of customers. But it doesn't fit
so well for the old motorbike industry giant. Despite new versions and modernization of their
logo, sales figures continue to decline. Although Harley Davidson is working hard to make the
latest models more modern, there are still fundamental issues: the machines are still massive,
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bulky, noisy and too costly for the new target groups. In the midst of a smart, environmentally
aware and networked generation, Harley Davidson is somehow making a lost impact. Two points
have been demonstrated by the difficult start and the removal of the first "Live Wire" e-bike:
product development is difficult and costly and, secondly, market analysis should not be ignored
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Five years ago, this project began. It was a time when predicting how financially strong
the next generation would be was still challenging. Five years ago, however, one should have
known that, considering their student-day debts, Millennials could not invest USD 30,000 on a
motorcycle Harley Davidson is now at risk of losing contact with the millennial market if they do
not adapt to the needs of this generation instantly and quite regularly. The Indian market clearly
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demonstrates that the battle for market share has started in the premium segment. In Asia in
general, however the premium segment is at a very different price range. So for Harley
Davidson, what does that mean? In order to win market share in the millennial market, Harley
Davidson in its proposed model offensive in the 250cc to 500cc range should constantly meet the
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needs of the younger generation. The number of versions should be kept limited in order to
ensure the viability of the whole product line. Also at lower sales costs, productivity and
consequently the margin can be assured by developing a few simple models, which can be
individually extended according to the budgets of the customers. With this model of
customization, Harley Davidson could build an entry point into the luxury market for
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Millennials. The Harley Davidson warranty scheme becomes very appealing as soon as a Harley
is back in focus with the youthful target audiences, which can be seen as a promotional
argument. The production of models tailored to the user audience, however, has not yet been
completed.
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There are other reasons why Harley Davidson should strongly improve its bikes in terms
of technology as well: adding value to their vehicles, rendering them more difficult to replicate
and gather consumer data. It is possible to replicate the technologies that Harley Davidson
currently uses. It is important that Harley Davidson integrates emerging technology and unique
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ideas into their new products at a time when low-cost manufacturers are developing and
corporations such as Honda, who are capable of introducing and integrating innovative
innovations within the company in various product categories. For this cause, Harley Davidson
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wants young tech collaborators who can assist them discover the "killer characteristics" that will
excite new generations. Therefore the product offensive of Harley Davidson can be limited to a
few models, so that forces are released for the various tasks that Harley Davidson is waiting e.g.,
the continuous expansion of sales and service points, the establishment of its own factories, the
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development of an enticing digital user interface and the start of strong marketing strategies. A
significant expenditure is correlated with this entire set of operations and thus allows the
business to concentrate.
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development strategies, however is not adequately cantered and entails significant investment
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https://www.statista.com/statistics/252210/market-share-of-major-motorcycle-manufacturers-in-
the-us/
https://www.statista.com/statistics/267311/worldwide-motorcycle-revenue-of-harley-davidson/
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https://mission-statement.com/harley-davidson/#:~:text=Harley%2DDavidson%20mission
%20statement%20is,impacts%20that%20this%20company%20leaves
https://thelogocompany.net/blog/friday-feature/evolution-harleydavidson-logo/?
fbclid=IwAR2U_21CS75r_TJoMzXx27ExfYwyayTQzKmn60NDLUpErIjL40MjNCDHNLM
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https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html?
fbclid=IwAR1TlQ3FOXTWIvFSstW9NXJQUJWF58eU1fyWnZuMJF-SeoIMDU5nL90FUyc
http://panmore.com/harley-davidson-five-forces-analysis-porters-model?
fbclid=IwAR3JZPWsoeL4JeZ0TUi3HpqGJb9xU7NQNzzaJf3ZwH34UG6xjPz6vR46MdU
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https://bissinka1.blogspot.com/2012/05/harley-davidson-case-study.html?
m=1&fbclid=IwAR2QlfEXHOnKYfAcS63naeICL3YOaN_j3zyIP_dyicLMjg9HH9yluTbFj_U ht
tps://www.mycomm.ch/harley-davidson-case-study/?
fbclid=IwAR0a_mWOk8_SkH_It9WAReGxsMCmpWKbzD370eLGEqtRiBt7Mv8v_rAuU84
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https://thelogocompany.net/blog/friday-feature/evolution-harleydavidson-logo/?
fbclid=IwAR0SUTncbV9eBGGJXkPueuTZE99J1G9Ks-8nnNc3uBnnlvdRE_r5Y3Lrwfg
http://panmore.com/harley-davidson-operations-management-10-decisions-areas-productivity?
fbclid=IwAR2TXyPQDKaMKpAK5435HZapgPn1nhlCr-zW46G6SabVXNHH7GXiub1o2gg
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