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Harley Davidson Case Study Essay

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February 19 2013
Case Study 10 Harley Davidson
Tuesday’s 6pm-10pm

1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?

A.)The advantage of Using Exports was that I’m able to save money in resources, taxes relief’s, and cheaper labor while exposing my product to an international market. Harley recognized that “German motorcyclist rode at high speeds-often more than 100 mph.” Pc-10. As a result the company began studying ways to cater to the German needs and provide more protection. The disadvantage would be the locally the community would loose certain jobs and the country
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has opened an Asian headquarters in Singapore. “Since it opened International sales, which accounted for 25% of the company's business four years ago, were 35% in 2010. The company has set a goal of at least 40% by 2014.” (JS ONLINE, Journal Sentinel)
Harley recently posted its first sales increase in 16 quarters, driven "entirely by retail growth outside the U.S.," Levatich said. (JS ONLINE, Journal Sentinel)
While cultivating sales in Asia, Harley-Davidson says for now it doesn't plan to manufacture bikes there. They cater their bikes as a luxury to high income communities. In Africa they hold group rides like the one happening in August 2013 held by “Harley Safari” http://www.hogafrica.com/content/harley-safari%C2%AE-august-2013.
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.

3.)Assume the CEO of Harley has decided to set up new manufacturing facilities in both China and India. Which of the general environment conditions should be analyzed before Harley makes strategic investments in each country. And to get started there, should Harley set up wholly owned
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