Harley Davidson Inc. 2008: Thriving Through a Recession, Case 16

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

The Harley Owners Group or HOG is a factory sponsored motorcycle enthusiast club established in 1983. Its main aim was to negate the influence of outlaw bike-gangs as the face of the Harley Davidson brand and enhance the lifestyle experience of a Harley Davidson owner. This was the roadmap of the firm’s broad philosophy of getting close to the customer. There was a great need to address two main issues with respect to the brand.

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.

The history of Harley-Davidson is an incredible story of four young men in Milwaukee, who experimented with internal combustion in a 10x15 little shed with the words Harley-Davidson Motor Company inscribed on the front. Not only did they not burn down the shed but they created a business that thrives strong even today.

It could be speculated that one reason HD has such a high ratio is because they are not investing in the growth of their company and one might come to the conclusion that they are stagnant when in actuality this is not the case. When you look at their growth rates you have to take into consideration optimum performance levels. HD is deficient in every Growth Rate Ratio across the board. Revenue Growth, Earnings Per Share, Capital Spending Growth all significantly lower than that of their competitors. However, my opinion is that the reason behind this is that they are already a well-established company who are already operating at the optimum level at which their market demands. All of the other companies in HD’s shadow are trying to play catch up so they have larger percentages of growth by comparison; however they suffer in profitability as a result of their growth rate. This theory is further corroborated by analyzing all of the profitability ratios, management effectives ratios and the disparity those numbers reflect between HD and its competitors.

The history of Harley-Davidson began in 1903, in a 10 ' x 15 ' shed located in the Davidson family 's Milwaukee backyard. The Davidson brothers - William D., Walter, and Arthur – and William S. Harley crafted their first motorcycle using the best tools they had available – mostly their hands and their ingenuity.

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.

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.

As a result, Harley-Davidson’s market share experienced a notable decline, forcing the company to go public following sixty years of private ownership. Furthermore, Harley-Davidson also experienced various internal changes, including its eventual acquisition by AMF, a heavy-industrial conglomerate, in 1969.

Regardless of their emergence in the market in the year, in 1903, Harley-Davidson together with the motorcycle industry did not have an easy start until the end of the Second World War. Many people used motorcycles during the period the war took place. Harley-Davidson was instrumental in supplying around 90,000 motorcycles to the American military during this period. Many veterans opted to buy motorcycles after returning home. This is because they enjoyed riding the motorcycles during the war and desired to continue riding them after the end of the war. This generation was called the "baby boomers" and became the primary target for Harley-Davidson to market their products.

•     Started as a partnership between a draftsman and a pattern maker in Milwaukee, Wisconsin in 1903. William Harley and Arthur Davidson intrigued by the newly invented motorcycles began experimenting with ideas to design and build their own motorcycle. They enlisted Arthur's brothers, Walter a skilled mechanic and William a machinist who gave live to the Harley-Davidson Motor Company. That early partnership has evolved into a family of millions of Harley-Davidson, Inc. stakeholders throughout the world.

Harley initiative are totally targeted at building an experience for existing user and potential users of their product. Harley seem focused on using social media not to directly build brand awareness but to encourage users to outwardly display brand loyalty, projecting the Harley lifestyle to friend and associates thus indirectly increasing their brand reputation.

Product development. Harley’s goal to reduce product development times include three main facets: “1) a laser focus on the best product opportunities; 2) reduced time-to-market; and 3) increased product development capacity through efficiencies” (Harley Davidson, 2011, p. 4). This goal does not meet the full criterion of the SMARTER principle. The goal is not specific. It does not quantify how much it wants to decrease the timeliness of product development. Employees benefit from this goal. The main benefit is that because HD believes in employees participating in the product development process it has created a learner centric environment. Employees stay well versed in their fields while assisting the company in developing quality products in shorter periods of time. This benefits the customers by providing quality products that keep up with advances in technologies and consumer desires.

After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.

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