A Case Study On Harley Davidson

Topics: Harley-Davidson, Motorcycle, Harley Owners Group Pages: 9 (387 words) Published: January 19, 2015
A CASE STUDY ON HARLEY
DAVIDSON:
DEFENDING A PIECE OF DOMESTIC PIE

About Harley Davidson
 Founded in 1903 by William S Harley
and the Davidson brothers.

 Symbolizes the all-American attributes of individuality, freedom and passion for adventure.

 By 1960 Japanese motor companies hit the country

 In 1969 AMF, a recreational equipment conglomerate

 By 1976 Harley-Davidson offered 4 models
 With the 80s Harley-Davidson started its revitalization program with the government help.
 Harley-Davidson Inc. had $1.04 billion net income (up 8.7% from '05) it sold 349.196 units to retailers (21,7 % abroad) and it has a domestic market share of 49,3% for heavyweight motorcycles.

S.W.O.T Analysis
Strengths &
Opportunities







Strong image
Brand loyalty
Strong investment in research and Customization
The only American manufacturer
Created Subculture

Weaknesses
& Threats







Small Company
Not the best Engines
American Company, so not a very good image abroad
Current markets becoming too narrow for higher profits
Increasing Immigration in US

Harley Davidson: a victim of unfair competitive
practices or its own lack of strategic vision ?
 In the 60s and 70s Japanese technology bumped the world.  Harley Davidson should have been prepared to the entry of new products, reactions with strong advertising and campaigning.
 It should have developed better products and processes before the Japanese could come into the market.
 Despite the lack of data to defend the Japanese against selling below costs (dumping), it looks like they were more efficient in their processes.  Therefore, Harley Davidson was not a victim of unfair competitive practices.

Harley Davidson: Does Size Matter ?
 Being a small scale producer can pose to be a disadvantage or rather a problem when competing with a producer who is able to reap the benefits of large scale economy.
 The Japanese were selling their products worldwide, they could reduce their costs due to large scale production.
 Therefore, size does matter !

Strategic Alternatives
 There are two main strategies

 So at the end we have four strategies :
-Leading by costs in a wide objective
- Leading by costs in a narrow objective
- Leading by differentiation in a wide objective
- Leading by differentiation in a narrow objective

 Until now they have been focusing in a single market

 It is recommended for Harley Davidson to open its scope and increase its exporting efforts.
 They could be the American symbol in America, but should also focus the advertisements in Europe and Asia to the freedom.

Conclusion

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