harley davidson case study

Topics: Harley-Davidson, Motorcycle, Marketing Pages: 11 (3278 words) Published: December 11, 2013
Executive Summary
“Harley-Davidson is the iconic American motorcycle manufacturer. Founded out of a small shed in 1903 by William S. Harley and Brothers Arthur and Walter Davidson in Milwaukee, Wisconsin. The Motor Company produces traditional cruiser motorcycles utilizing air-cooled V-Twin engines.  When Harley and Davidson produced and sold their first motorcycle in 1903, they were one of many small motorcycle marques springing up across the country. Flash forward more than a century and the Harley-Davidson brand is so rooted in American culture that the history of the company intertwines with the history of America itself. “ Harley- Davidson a brand that say I’m an American with its strong image they summarize what biking is and isn’t. They produce quality products that are reliable and durable. With so much more to offer Harley-Davidson cannot compete with the Japanese in terms of market share in Europe they only have 6.4% which is excruciating for a company who consider their product as a luxury item with all top of the line parts, brand image ,and all the thing they offer to the consumers. That’s why we look for alternative that could be beneficial to Harley-Davidson which is Market penetration, market development, and product development in Europe. We generated this idea ease them and with employees who know what their job is and make the necessary adjustment in their product or service need not worry of what will happen.

Situational Analysis
Environment
The Environmental Protection Agency (EPA) regulates automobile and motorcycle emissions. Future revisions could negatively impact the motorcycle industry. Steel prices increased 57% and aluminum increased by 24%, the cost increases on to consumers, thus raising the price of the product, in retrospect it will decrease the sales of the company. The environmental protection laws create on additional pressure for companies. Human resource legislation mostly in favor of the employees also does have an impact on the profitability of the company. The internationalization of the business of the company is concerned the moving of production facilities to those locations The motorcycle industry has contracted greatly since the mid-1980s. Real gross domestic product (GDP) growth, which measures the value of all domestic goods and services, for 1998 has been in the range of 3.0 - 3.5 percent, which is above the long-run average of 2.5 - 3.0 percent that has observed since the early 1970’s. Although GDP growth began to slow in 1998, and this has led many to question whether or not the U.S. was heading into a recession in 1999, particularly given the worldwide slowdown due to the Asian economic crisis. Some estimates put the effect of the Asian crisis on the U.S. economy as a one percentage point reduction in the growth rate for 1999.

The forecast for the U.S. economy in 1999 is stable economic growth, a slight rise in U.S. unemployment rates, a slight rise in inflation, and a rise in long-term interest rates. Although this is worse than observed in 1998, given the uncertainty and instability that permeated the U.S. economy in the fall of 1998, the outlook could have been much worse.

The demographic profile of motorcycle buyers has changed over the years (see exhibit 1 page 355 for the Heavyweight motorcycle registrations in three global regions), in which Europe has the largest number of people registered, which is 270,500. According to the Motorcycle Industry Council, 61% of buyers are over 35 years old whereas in 1980, only 27% has reached this age.

A. Industry
The motorcycle industry consisting of five major manufacturers: one American (Harley Davidson), and four Japanese (Honda, Yamaha, Kawasaki, Suzuki) and some European companies (mainly BMW of Germany and some other Italian companies). Most companies market their motorcycles and accessories on a worldwide basis, handling international trade through foreign distributors and domestic sales...
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