International Management - Class 6 - Year 2010/2011 STRATEGY AS POSITIONING “…the legend rolls on…” Harley Davidson brand operates in three traditional heavyweight markets: Custom, Touring and Sportster motorcycles. Buell operates in all of the sport markets (heavy or lightweight segment). MV Agusta operates in the sport markets (heavy or lightweight segment) in Europe. I would favor a more direct approach. You have been asked to assess the challenges that HD faces. But you begin with a chart that shows several aspects of HD’s business and strategy that does not, on its own, convey very much and lacks any explanation to link it to the possible problems that HD may face. Again, your diagram shows that HD has a v …show more content…
Ducati would solve the previous issues, bringing several advantages: • the actual market trend is rewarding Ducati performance motorcycles, since customers are more interested in untraditional design and technologically advanced features; • Ducati has already settled successful racing teams both in MotoGP and Superbike; • HD would increase its bargaining power with suppliers; • the current excess capacity could be exploited by producing an increasing amount of Ducatis. But why should HD buy Ducati rather than other companies? Ducati and HD present several consistencies: first, both are strongly market focused and developed customers loyalty through the conveyance of a particular lifestyle, the building of a community and the organization of periodic social events. Moreover, they possess high design capabilities. Finally, the committed dealership model of HD could be reproduced within Ducati dealership network. The acquisition seems feasible: Ducati 2007 turnover was € 397 mil, with an € 51 mil EBITDA. HD instead showed greater figures: a $ 5227 mil 2007 turnover and a $1426 mil EBITDA. Furthermore, the main owners of Ducati are investment funds, usually willing to make capital gains through sellouts. Concerning Agusta and Buell, Buell’s and Ducati’s offerings are overlapping. Thus, the investment in Ducati would imply the divestment from Buell; instead, Agusta would remain a high priced and
Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been
Starting from a company of less than 75 workers and owning less than 20,000 SCU for production, research, quality assurance and conduct warranty work Off The Chain Bikes has doubled the plant capacity and hearing doubling the workforce within two short years. The company is successful by targeting and capturing lucrative market shares by heavily investing in the desired technical specs and design styles of one of the most influential Racing bikes. Our keen ability to thoroughly research market demands, predicting competitive strategies between the four market majority shareholders by reviewing and interpreting the marketing reports and our aggressive design and development plans have significantly increased our market share and increase shareholder value. Our core competencies and strategic goals will be realized by carefully following our established plans and aggressively price our bikes to increase total market share.
Ducati entered into Sport-Touring segment, which enabled a complete presence in all categories of Sports segment. Strategic innovation: creating new customer segment [Grant p 213]
Harley Davidson been in business for over a hundred years. The company operates in several related markets. They sell motorcycles, motorcycle parts and operate a financial component. Additionally the company operates in Europe, North Africa, the Middle East and Asia. All Harley-Davidson business segments operate internationally.
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.
Answer: H-D using “Differentiation Strategy” by offering its heavyweight motorcycle through the distinctive designs. H-D are also a leader in the heavyweight motorcycle manufacturers industry and it has more than 100 years old in this market, also its American icon make H-D become traditional brand. Due to H-D becoming the traditional brand in American made version, the consumers perceive that H-D mean quality. Consumers will choosing H-D products because of their high quality products and demand
Marketing and Sales represents Ducati’s most significant growth opportunities because their brand management strategy advances the Ducati name into the consciousness of their markets. In addition to motorcycles, Ducati extends the brand by selling accessories and apparel. For sure, Ducati owners will buy these products but perhaps more importantly, the aspirational aspect of the brand drives people to buy Ducati-branded items even if they don’t own the bike. This behavior is seen with the Harley-Davidson brand: many people wear H-D clothing and
Slaoui and Andrew Witty, GSK’s CEO must sell the acquisition of Sirtris to two key constituencies: the GSK board of directors, as well as to Westphal and the senior team at Sirtris. How would you make these pitches?
Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.
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 treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
The fight amongst the major players in this industry is not over price, but over capturing the market share. Since, there is no one definitive leader in the motorcycle industry on the global level, the companies tend to steal each other’s business, this makes the industry rivalry cut throat. One of the crucial factors that make this industry extremely attractive is the constant drive for innovation. Since different industry participants have different approach towards the same segment of the industry, there is a very high
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.
1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not?
Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and