According to Meyer (2017), a third component of Harley-Davidson’s intensive growth strategy is market development, growing by establishing new operations in more countries by increasing its supplier network to support global expansion and growth. The need to expand globally is fueled by the company’s financial situation. After peaking with $6.2 billion revenue in 2006, it declined nearly 30 percent from 2007 and 2009 and was highly leveraged at debt-to-equity of 1.6. The main concern is increase the operating margin to 25 percent (up from 16 percent) by controlling cost. One way to reduce the fixed cost is to increase sales.
Harley-Davidson’s International Growth
Internationally, Harvey-Davidson operates a regional headquarters in Oxford, England, which manages the EMEA region consisting of European, the Middle Eastern and African countries. Another headquarters in Singapore manages the Asia Pacific regions consisting of China, India, Australia and Japan, while the rest of Asia Pacific is managed through the U.S. operations (Hitt, Ireland, & Hoshisson, 2015). The company expands into India and China, both countries with large motorcycle ownership market and income growth, with aim to reach a goal of 40 percent of revenue from internal sales from an existing 32 percent.
To globalize effectively, it needs to adapt to local customs and
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Its brand equity and loyalty are not easier imitable by competitors and lead to sustainable competitive advantage for the U.S. domestic market in face of strong competitive rivalry from challenges from overseas. However, such competitive advantage is diminished when the company expands globally. The brand message needs to be translated to adapt to local culture, and the company could benefit from having new director on the board who have strong experience in international joint ventures or
about all the rancor surrounding Trump’s hostile discourse even though it affected minorities like me and my family. Besides, I’m not keen on sugarcoating all the nasty comments, as I do not wish for my children to get in the habit of whitewashing inconvenient truths.
To further strengthen the supply chain and improve customer loyalty. Harley Davidson marketing and sales personnel must interact with its purchasing personnel to integrate the supply chain from supplier of raw materials and getting the product delivered into the hand of user at the right time, cost and quality user need it. Harley integrated effort must focuses on people, process and technology to improve supply chain development by enhance quality, reduce cost and improve delivery time
Sizing –Due to the volatility and cyclical motorcycle business, Harley-Davidson attempts to expand capacity without taking on further debt. Thus, it would expand capacity first through internal process improvements and restructuring, and externally only if needed.
Harley-Davidson’s Annual Report (2009) indicates sales from motorcycles and related products on a continuing basis decreased 23.1 percent to $4.29 billion compared to 2008 and income from continuing operations decreased 89.7 percent from the prior year to $70.6 million (Harley-Davidson, 2010a). These losses can be attributed to HDFS and the impact of restructuring (Harley-Davidson, 2010a). However, by eliminating excess capacity, reducing administrative costs and non-core business operations, Harley-Davidson believes these steps of restructuring will reflect between $240 million and $260 million in annual ongoing savings (HD1, 2010). Nonetheless, excusing the decline in numbers, Harley-Davidson’s Annual Report (2009) states, since 1993, the company has paid a dividend every year (Harley-Davidson, 2010a).
Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the
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.
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
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]
There have been many theories as to why the American Civil War was fought. The North had its ' reasons and so did the South, but the politically correct reason of slavery is not the only factor. The war also was fought for economic reasons that effected both side of this conflict. Secretary of State William Seward said in 1858, “On one side are those who believe the war had fundamental causes, that the North and South faced an "irrepressible conflict,"
Honda has continued to embrace the changes that happen around its operations to ensure sustainability and profitability. The current global motorcycle manufacturing sector is full of competition. It, therefore, becomes crucial for every manufacturer to evaluate their strengths and weaknesses and then identify the opportunities to exploit to gain competitive advantage. Honda is Japanese based automobile company; it has numerous subsidiaries in Asia, Europe, and North America. Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. The business level strategy at Honda is in line with its enterprise and corporate strategy. The corporation also conducts Research and
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.
The situational analysis is referring to internal and external environment of XYZ Express Kota Bharu branch. The situational analysis could be illustrating through SWOT and TOWS Matrix analysis in order to identify it capabilities of strength and opportunities to strengthen up its performance.
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.