Harley-Davidson Case Analysis Harley-Davidson should tailor is product and service offerings to the 55-64 year old segment, and expand its Rental and Rider’s Edge programs to continue growing Market leader in motorcycles - Market leader with 50% domestic and 32% global market share in motorcycles - Stock prices CAGR since 1989: 32% - American legendary lifestyle brand - Loyal customers: 900,000 members in Harley-Davidson Owner Group - 50% of sales to repeating customers Ageing customer base and difficulty to attract new clients - Average customer age grew from 35 in 1994 to 47 in 2004 - Young customers are not attracted by the brand - Women are still only 10% of clients - 2005 sales target cut back by 10,000 …show more content…
segment Expand Rental Program Expand Rider’s Edge Program Implementation plan Risks 1 To retain loyal customers beyond the age of 54, HDI should invest in targeted advertisement in short-term, and premium service and tailored bike models in the medium-term Launch targeted advert. campaign Launch comfort/premium motorcycles
A major issue in the United States is gun control. Due to multiple mass shootings in schools and public areas, restrictions regarding guns have been implemented across the United States. Andrew Parks, a student at The University of Alabama, wrote an article against gun restrictions. His article, “The University should allow concealed carry,” supports the idea of college campuses like The University of Alabama, allowing students to conceal carry firearms. In an article written by Jennie Kushner, the opinions of students on the University of Alabama’s Police Department’s gun policy are presented. The safety of student body relies on the students’ feeling safe. That safety comes from less gun control laws and policies on campus. Each of the articles stated provides information against gun control in different ways.
Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.
Harley-Davidson, Inc. since its inception has specialized in selling dream motorcycles that are of high quality and distinctive in styles. The company in the past have seen turbulent business environment to the extent of leveraged buyout, infiltration of foreign made bikes as well as government regulations. Yet despite these factors, Harley-Davidson continues to reap profits, yield high growth of approximately 15% a year and retain its customer base (Official Website 2004). This position in the market is however limited to the US whereas in other countries of the world Harley-Davidson products remain luxury item requiring emotional attachment with American iconism.
Demand – Customers are loyal and identify with the HD brand. Currently demand outmatches supply, so HD is considering whether to raise prices or expand capacity via various options.
The Harley Owners Group or HOG is a factory sponsored motorcycle enthusiast club established in 1983. Its main aim was to negate the influence of outlaw bike-gangs as the face of the Harley Davidson brand and enhance the lifestyle experience of a Harley Davidson owner. This was the roadmap of the firm’s broad philosophy of getting close to the customer. There was a great need to address two main issues with respect to the brand.
There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.
The first major ingredient of Harley-Davidson’s transformation process was the influx of new capital from AMF. Specifically, this allowed the company to dramatically expand motorcycle production from 15,475 units to 70,000 units in only four years; however, this change also resulted in a significant decrease in overall product quality.
In my early forties, I was given a second chance to choose a career. I was laid off from my workplace of 18 years due to a slump in the oil industry. I started working with an employment agency to perfect my resume and come up with creative ways that my skills transferred to other industries, but my heart wasn’t in it. My job had meant to be a short-term pit-stop on my way to realizing my true purpose, one that got too comfortable. This was an opportunity for me to select a meaningful career that I could be proud of.
Regardless of their emergence in the market in the year, in 1903, Harley-Davidson together with the motorcycle industry did not have an easy start until the end of the Second World War. Many people used motorcycles during the period the war took place. Harley-Davidson was instrumental in supplying around 90,000 motorcycles to the American military during this period. Many veterans opted to buy motorcycles after returning home. This is because they enjoyed riding the motorcycles during the war and desired to continue riding them after the end of the war. This generation was called the "baby boomers" and became the primary target for Harley-Davidson to market their products.
Since the founding of Harley-Davidson in 1903 by Arthur and Walter Davidson and William Harley, the company has a rich heritage and a loyal following. The company has proven to be resilient and innovative throughout the years. They have made their fair share of mistakes, especially while under the ownership of AMF, whose decisions almost destroyed Harley-Davidson. They have also made an inspiring come back, recapturing their share of the market and more. Harley-Davidson has managed to attract all sorts of riders including motorcycle “rebels”, women and blue and white color workers. In fact, in our church small group there are two
Since Harley Davison Motor Company started in 1903, they have been successfully “taking the work out of bicycling” better than any other motorcycle manufacturing company. They have experienced great success recently with growing numbers in their percentage of motorcycles shipped, up 14 percent from 1997, and their target market size, up 13.8 percent from 1997. Their brand has also grown so strong over the years that customers are willing to wait up to two years for a motorcycle. The problems that Harley Davison is faced with are how to improve their existing purchasing process, how to integrate their existing procurement methods together, and how to develop longer term
Ghazali is considered one of the greatest scholars of Islam, he is a theologian, philosopher, and a Sufi. Theology and mysticism are essential components in establishing Sufism, which is the dynamic processor of orthodox Islamic practices. Ghazali Summaries the Islamic belief, worship, and spiritual, by outlining the foundational concepts of ritual and it's practiced. Also, he described the characters that the person must portrait to cultivate the perfection of faith. Both Shi'i scholars Ghazali and Shahrastani approaches to the three dimension of Islam. Ghazali explains the six pillars of Islam in a spiritual method that illustrates the beauty of Iman. Literarily, He teaches how to believe in Allah, by comprehending the knowing facts about
As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.
Harley Davidson Company has a long history of building motorcycles that have worked to actually shape a part of the American culture. Its product positioning and marketing strategies have served as a prime example for any company to imitate. Harley Davidson has developed immense levels of brand loyalty over the years. However, the company has also been burdened by the recent economic downturn and now is going through something of a rebuilding phase as it tries to determine its best course forward. This analysis will conduct a SWOT assessment of Harley Davidson's current position and make recommendations on how Harley can continue to develop the next phase of its iconic American brand.
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.