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HARLEY-DAVIDSON

Presented by

M ohd .
AM IT JAIN Ka m r a n
Introduction
It’s a story no one on earth could have made
up.
Let have a look at the journey of the greatest

companies on the planet…… “Harley


Davidson”.
Harleys are, just like fun stuff for people with

money and appearance. So, “rich” customers


rule the market.
Harleys aren’t the fastest and manageable

cycles, riding a Harley is not at all comparable


with riding any other bike…….
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 Harley-Davidson 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.
 Difficulty U.S. & European
Manufacturers had in attracting price
sensitive European market.

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.
Harley Davidson’s strategy for
competing in motorcycle industry
 After LBO company felt need to rebuilt from
ground
 Management realized that a strong alliance to
Harley brand by many bikers was the only
strength.
 Promotions at motorcycle rallies.
 Improving dealer network.
 Pilot program-clean and attractive showrooms to
showcase Harley’s improved motorcycle and
display apparel & other merchandise.
 Harley owners groups (HOG) from 1983- loyal
clubs to socialize and ride with bike owners.
 HOG also organized rides, raised money for
charities
 HOG membership started with 33000 in 1983 and
currently over 1 million members.


Degr Differentiation focus Differentiation
ee of
prod High
uctio
n
diffe Cost focus Cost leadership
renti Low
ation

narrow Broad

Scope of Business
Activities
The SWOT analysis
Strengths
 Domestic & international market share
 Financial status
 Product quality
 Strong brand loyalty and HOGs
 Strong distribution network
Weaknesses

 Harley Davidson does not emphasize price in its


product.
 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.
 Customer value quality parts.


Swot continued….
 Threats

 Harley ongoing capacity restraints caused a shortages


supply and a loss in domestic market share in recent
years.
 Harley average buying age is 46 years old and increasing.
 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 testes.
 Customer loyalty in European and Asian countries.
 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