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    HARLEY-DAVIDSON Spi

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    Mohd Kamran
    Harley-Davidson was founded in 1901 and has grown to be one of the largest motorcycle manufacturers. It started with two founders building the first motorcycle and has since expanded globally. However, Harley faces challenges from regulations and competition from other brands. Its strategy has focused on cultivating brand loyalty through owner groups and rallies. While it has strong brand recognition, its aging customer base and high prices present threats to future growth.

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    HARLEY-DAVIDSON Spi

    Uploaded by

    Mohd Kamran
    660 views13 pages
    Harley-Davidson was founded in 1901 and has grown to be one of the largest motorcycle manufacturers. It started with two founders building the first motorcycle and has since expanded globally. However, Harley faces challenges from regulations and competition from other brands. Its strategy has focused on cultivating brand loyalty through owner groups and rallies. While it has strong brand recognition, its aging customer base and high prices present threats to future growth.

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    Harley-Davidson was founded in 1901 and has grown to be one of the largest motorcycle manufacturers. It started with two founders building the first motorcycle and has since expanded globally. However, Harley faces challenges from regulations and competition from other brands. Its strategy has focused on cultivating brand loyalty through owner groups and rallies. While it has strong brand recognition, its aging customer base and high prices present threats to future growth.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    660 views13 pages

    HARLEY-DAVIDSON Spi

    Uploaded by

    Mohd Kamran
    Harley-Davidson was founded in 1901 and has grown to be one of the largest motorcycle manufacturers. It started with two founders building the first motorcycle and has since expanded globally. However, Harley faces challenges from regulations and competition from other brands. Its strategy has focused on cultivating brand loyalty through owner groups and rallies. While it has strong brand recognition, its aging customer base and high prices present threats to future growth.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    HARLEY-DAVIDSON

    Presented by
    Md. Atif Akhtar Mohd. Kamran
    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- NHTSA
    Harley Davidson’s strategy for
    competing in motorcycle industry
     After LBO company felt need to rebuilt from ground
     Products were unreliable and had poorer performance
    relative to less expensive Japanese motorcycle.
     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 Lo
    ation w

    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

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