harley davidson cruiser case study

Topics: Harley-Davidson, Buell Motorcycle Company, Motorcycle Pages: 13 (3945 words) Published: December 22, 2013
Section I: Organization’s Business, Mission, and Goals

1.1) Business Definition
Harley-Davidson is and American motorcycle manufacturer where founded in Milwaukee, Wisconsin. Harley-Davidson only focuses on heavyweight motorcycle with engine displacement greater than 700cc during 1970s, but they noticed that is opportunities on chopper style of motorcycle. Therefore they try to build new product plant and started to manufacture new types of motorcycle, until nowadays, Harley-Davidson have more than 100 models in the markets.

1.2) Business Mission
Harley-Davidson values the deep emotional connection that is created with their customers through their products, services and experiences. They are fueled by the brand loyalty and trust that their customers places in worldwide to deliver premium quality and the promise of a fulfilling ownership experience.

1.3) Business Goals
Production Objectives
To increase productivity speed by 10% within 2015 in order to fulfill customer needs. Stay ahead of the market competitors and produce minimum 1 innovate and new products per year for the next 3 years in order to maintain as the leader in the industry. Financial Objectives

To achieve by approximately 10% increase of net profit for the next 3 years. To reduce cost of production around 5% within the next 3 years Marketing Objectives
To increase market share by 10% by 2015 by targeting on their new target market (Young adult 18-34, Causasian Women 35-74, African-Americans 35-74 and Hispanics 35-74). To achieve constant annual growth of 5% to 10% revenue per year until 2015. Section II: Organizational Growth Opportunities

2.1) Environmental Opportunities
The motorcycle market appeared to be full of opportunity in today’s market due to the increasing demand of the consumers who love bikes. However, cruiser market share is expected to increase the most in the motorcycle industry. This foreseen opportunity is due to the expansion of the market demand of the existing and new target market which are the baby boomers who wanted” toys that did not have when they were much younger” and also the women market which has been seen as a chance by innovating new product to meet their wants. Besides, Harley Davidson should pay focus on China market since they have the highest population in this world and they have a good purchasing power. 2.2) Distinctive Competencies

Harley-Davidson commanded 48% of the North American cruiser motorcycle market and also the largest producer with $2.064 million of revenues and $214 million of income in year 1998. Harley had been a legendary back in the early 1900s and then bolstered by marketing share and heritage. Harley’s motorcycles were mainly intended for sport, but not transportation in the consumers mind. Harley has been given a name as “King of the road” and their customers were explained as buying “emotion, attitude, and the American flag”. 2.3) Success requirement

Harley-Davidson with their excellent manufacturing should practice in maintaining and produce more premium class products to maximize the satisfaction of the customers. Harley can remodel the old products suit with a better engines and accessories to attract more customers. Harley can also achieve a stronger competitive advantage in the cruiser market by improving their customers’ service and after sell service. Maintaining a strategic management skill of is also crucial point for Harley to gain a higher market share and revenues in this competitive market. However, in this case, we could concluded that Harley company attract a lot of their loyal customers to stay with them to kill the other competitors in the market even the price is lower or higher than other companies. Harley should continuous their R&D to meet future market opportunities. 2.4) SWOT Analysis Framework

Internal Factors
Strength
Weaknesses
External Factors
Opportunities
Threats
Management

Economic

Marketing

Competition...
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