Table of Contents
A. Brief History
2. The Motorcycle Industry
1. Mission Statement
2. Vision Statement
D. Problem Statement
1. What is the Future of Harley-Davidson?
II. EXTERNAL ASSESSMENT
A. Nature of the Industry
4. Future of the Industry
B. Competitive Analysis
1. Industry Attractiveness and Barriers
2. Key Success Factors
3. Competitor Analysis
III. INTERNAL ASSESSMENT
A. Individual Analysis of Harley-Davidson
1. Nature of the Firm
3. Financial Position
4. Financial Ratio Analysis
IV. STRATEGIC CHOICE
A. SWOT Analysis
B. Strategy for the Future
VI. REFERENCE SECTION
A. Brief History
Harley-Davidson is an American motorcycle manufacturer founded in Milwaukee, Wisconsin, in 1903 when Bill Harley and Arthur Walter Davidson developed a one-cylinder motorcycle. In 1905 they made and sold11 motorcycles; in 1908 they sold 154, and a company was born in a little wooden barn that was built by Davidson's father. Harley-Davidson, Inc. produces and sells heavyweight motorcycles, as well as motorcycle parts and accessories. It operates in two segments, Motorcycles and Related Products, and Financial Services. The Motorcycles and Related Products segment deals in the design, manufacture, and sale of heavyweight touring, custom, and performance motorcycles mostly in North America, Europe, the Middle East, Africa, Asia, and Latin America. It also produces a line of motorcycle parts and accessories, including replacement parts and decorative accessories. It also offers general merchandise, such as apparel and related services. The Financial Services segment provides wholesale and retail financing, and insurance and insurance-related programs to the company’s dealers and retail customers in the United States and Canada. It engages in financing and servicing wholesale inventory receivables and retail consumer loans for motorcycles. The Financial Services segment also provides motorcycle insurance and casualty insurance, as well as sells extended service contracts, gap coverage, and debt protection products to motorcycle owners. Harley-Davidson sells its products through independent dealers and distributors. During the Great Depression, Harley-Davidson's sales fell from 21,000 in 1929 to 3,703 in 1933. Despite those gloomy numbers, Harley-Davidson introduced a new lineup for 1934. In order to survive the remainder of the Depression, the company manufactured industrial power plants based on their motorcycle engines. They also designed and built a three-wheeler delivery vehicle called the Servi-Car, which remained in production until 1973. One of only two American cycle manufacturers to survive the Great Depression, Harley-Davidson produced large numbers of motorcycles for the US Army in World War II. They started civilian production after the war, producing a series of large motorcycles that were successful both on racetracks and for private buyers. In 1952, following their application to the US Tariff Commission for a 40% tax on imported motorcycles, Harley-Davidson was charged with restrictive practices. Hollywood also damaged Harley's image with many outlaw biker gang films produced from the 1950s through the 1970s. "Harley-Davidson" for a long time was synonymous with the Hells Angels and other outlaw motorcyclists. In 1969, American Machinery and Foundry (AMF) bought the company, streamlined production, and slashed the workforce. This strategy resulted in a labor strike and a lower quality of bikes. The bikes were expensive and inferior in performance, handling, and quality to Japanese motorcycles. Sales declined and the company almost went bankrupt. The Harley-Davidson name was mocked as "Hardly Driveable."...
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Fessler, Clyde. (H-D VP for Business Development), “Rotating leadership at Harley-Davidson: from hierarchy to interdependence,” Strategy & Leadership, July 17, 1997.
Harley-Davidson, Inc. Annual Reports, 2000 to 2009.
Mitchel, D. (1997). Harley-Davidson Chronicle - An American Original. Publications International Limited. pp. 68–69.
Reid, Peter. “How Harley beat back the Japanese,” Fortune, September 25, 1989.
Roth, Stephen. “Harley’s goal: unify union and management,” Kansas City Business Journal, May 16, 1997.
Setright, L.J.K. (1979). The Guinness book of motorcycling facts and feats. Guinness Superlatives. pp. 8–18.
Strauss, Gary. “Born to be bikers,” USA Today, November 5, 1997.
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 Howe, Robert F. Smithsonian magazine, August 2003, pg. 36 - "Wild Thing."
 Bellman, Eric (August 28, 2009)
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hierarchy to interdependence,” Strategy & Leadership, July 17, 1997.
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