Harley Davidson Case Study Essay

It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.

Harley-Davidson (Harley) was founded in 1903 as a small business and became the largest motorcycle company in the world after 15 years of operations. Moreover, by 1950, Harley-Davidson was the leader in the U.S. Market with over 60% market share. Historically, the key success factor in Harley-Davidson combined two important ingredients: several competitive advantages and favorable conditions in the motorcycle industry since the industry was almost new and the barriers to enter or the forces affecting it were weak (see appendix 5.1). After the victory of Walter Davidson riding a Harley-Davidson in a race and the development of unique innovations such as the V-twin engine, Harley obtained

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

Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.

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.

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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 Motor Company was founded by William Harley and Arthur, Walter and William Davidson. It is the producer and manufacturer of iconic and unique motorbikes, which are desired by millions of people around the globe. It is the most recognized company in motorcycle industry, creator of culture, lifestyle and tradition. It is one of few businesses which have gained the admiration and respect of consumers and competitors.

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

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).

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.

Harley-Davidson has competed in the U.S. and international markets against 140 other manufacturers, most of which were larger and far better financed then they were. In 1985, Harley-Davidson was emerging from its hardships and growing as one of the top five motorcycle manufacturers in U.S. market shares, while also having 31% of its sales coming from overseas. Its international sales were increasing as they had partnered with a European parts warehouse in Germany and a joint-venture in Japan. In addition to these relationships, it had also partnered with 851 U.S and international dealerships.

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