Harley Davidson Case Study Essay

Question #2 In America and Japan, Harley has shifted the positioning of its products away from simple motorcycles and more toward being status symbols of a particular way of life. Can this positioning succeed in Asia, Africa, and South America? Why or why not?

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

2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?

Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and

Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.

However in the markets they do serve they desire a relationship that evident in Harley riders. This is most evidenced by the participation in the Harley-Davidson Owners Group (H.O.G.). “The HOG worldwide membership had grown to 900,000 at the end of 2004 . . . in contrast Honda’s Gold Wing Road rides had 75,000 members” (Nolan & Kotha, 2007). The final part of the statement is just a reassurance to investors that profitability is a key concern.

The three statics of Harley-Davidson’s is; revenue, growth rate, and number of units that are sold. The manufacturer of the United States heavyweight motorcycle division has obtained, arrested, and achieved approximately fifty-four percent of the broad United States motorcycle exchange. Harley-Davidson has fifty-two percent share of the broad motorcycle exchange in which IBISWorld INC. has estimated that it will generate six point nine billion dollars in revenue this year, (Forbes, (2014).

During its period of peak demand, the company expanded the number of dealerships throughout the country. At the same time, its current dealers typically had waiting lists that extended up to a year for some of the most popular models. In August 2009, Harley-Davidson announced plans to enter the market in India. The company established a subsidiary near Delhi, and began the process of seeking dealers.[6]

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Harley Davidson Inc. is a leading motorcycle manufacturer in America. The abbreviation used for the company is H-D or Harley and was formerly known as HDI. It is listed under New York Stock Exchange with ticker symbol HOG. The company was founded in the first decade of 20th century in Milwaukee Wisconsin. It was founded by the Davidson brothers – William, Walter and Arthur along with the William S. Harley. The company was among one of the two American motorcycle manufacturers who survived through the Great Depression. Harley Davidson faced tough times in its tenure; it has survived from the period of bad quality control and stiff competition from the Japanese companies.

Harley-Davidson, Inc. is the fifth biggest player in the global motorcycle market. Established in 1903, the company is known for manufacturing heavyweight motorcycles.

Like any automobile company, Harley Davidson industry also has large manufacturing facilities and equipments. New Entrants would have to have a large amount of capital and would need to spend tons of money in advertising and promotion to receive the same amount of brand recognition and customer loyalty that the powerhouses company Harley Davidson has already gained. And retailers, without the brand recognition and customer loyalty of the new entrants, would be afraid to carry such products.

During 2009, Harley-Davidson generated more than half of its revenue (67.9%) from the United States. (The remainder revenue was from Europe (16.3%), Japan (6%), Canada (4.1%), Australia (3.2%), and rest of the world (2.5%). The high dependence on the U.S. market has proven to be a great weakness (since 2008) for Harley-Davidson due to the poor economic condition of the US (GlobalData).

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.

3. Explain the advantages and disadvantages of the different means that firms use to enter foreign markets.