Harley Davidson Inc
Introduction
Since its introduction in the market (1903), Harley Davidson Inc. has experienced mixed fortunes in their production process. The company started as a monopoly until at a time when the Asian companies such as Honda emerged strongly in the market (1973). This strong competition presented by the Asian companies has forced the company to modify its production process in order to achieve its mission and vision statements. Even though the company has experienced stiff competition throughout the year, it still has popular following around the world. Some competitors include Kawasaki, Yamaha, and Suzuki, Indian, Victory, BMW and Triumph motorcycles showing that the company has applied a unique strategic management in order to remain relevant in the market. The background of the company triggers the thesis statement of this article: "proper strategic management is the key to coping with a stiffer competition in the market".
HD's mission, values and vision
Every company needs to establish its mission statement in its endeavor to remain profitable in the market. The mission statement helps in describing the general purpose of the organization consequently making the company to stick to its scope. The mission of the company: we ride with our customers and apply this deep connection in every market we serve to create superior value for all our stakeholders (Harley Davidson, 2012). The mission of the company encompasses good relation with the
The Mission Statement is a vital component in the strategic planning of a business organization. Creating a mission is one of the first actions an organization should take. This can be a building block for an overall strategy and development of more specific functional strategies (Abrahams, 1995). By defining a mission an organization is making a statement of organizational purpose.
Harley-Davidson, Inc. since its inception has specialized in selling dream motorcycles that are of high quality and distinctive in styles. The company in the past have seen turbulent business environment to the extent of leveraged buyout, infiltration of foreign made bikes as well as government regulations. Yet despite these factors, Harley-Davidson continues to reap profits, yield high growth of approximately 15% a year and retain its customer base (Official Website 2004). This position in the market is however limited to the US whereas in other countries of the world Harley-Davidson products remain luxury item requiring emotional attachment with American iconism.
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.
The mission statement is often publically stated and used by almost every organization today. It helps provide basic guidelines, essentially the core values of a company, and what they aim for. A mission statement gives customers
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.
The mission statement is a written document that an organization declares its core purpose. The mission statements defines the essence of the organizations needs and their core purpose of their existence. It describes the role that they play in the community and portrays the club’s image, charisma, and individuality. If the mission statement is written correctly it can provide an explanation to internal and external individuals on what the organization stands for. Some of the components that are key to the mission statement are members, product and service, market, technology and philosophy are just a few that should be in the mission statement. Without and effective mission statement to inspire your employees and members on why you exist it won’t mean anything to them. Here is an example of a mission statement from Kohl’s
Good relationships, continuous improvement, employee and management involvement, team building or employee training and empowerment are not just words out of a management book for Harley-Davidson. Only by adopting those management techniques and building a solid base between the management and the Unions/employees made it possible for Harley-Davidson to improve its management processes. While management 's responsibility is to build
In this paper we will perform a complete analysis of the Harley-Davidson Corporation including their corporate and business strategies, strengths and weaknesses, environmental opportunities, the five industry forces, and financial situation. Harley-Davidson has many attributes, which will be apparent in the following analysis. The paper will attempt to define the different components of the analysis and put them all together in a way that seeks to explain the way that they contribute to the overall success of the company and its stakeholders.
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 is known as one of the main motorcycle manufacturers and sellers in the United States. The company had good business and great market share in the early 1960s when it commanded a total of about 70% 0f the motorcycle market, before the invasion or the intrusion of a small Japanese firm that manufactured lighter motorcycles, known as the Honda. The case study as identifies that Harley Davidson assumed the invasion by the Japanese firm and instead of tackling the competition, it waited for a long time which resulted in the company losing its command in the motorcycle market in the United States. Lack of action by the management of Harley Davidson resulted in the failure of the company
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.
The mission statement communicates to stakeholders the main activities that the company focuses on in order for it to achieve its vision. The mission statement communicates to employees’ information on how to conduct their day to day activities. The mission statements also describe the organizations, policies, culture as well as ethics (Alesia 2013).
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
A mission statement describes the objective of a company or an organization. It shortly defines the overall goal and clarifies why the company exists (Griffin,1990). A mission statement should indicate some core points..