Harley Davidson

3305 Words May 20th, 2000 14 Pages
EXECUTIVE SUMMARY Harley-Davidson is the largest market share holder of motorcycles over 750cc in the United
States. After the expansion of our production and distribution capacity, we will be in the position to meet the increasing demand for our motorcycles and other products. Growth potential appears very good especially in the overseas market. Gaining a larger market share in these area may require a further increase in production and distribution capacities. We must plan for expansion now and continue to grow as a company.

COMPANY DESCRIPTION In Milwaukee,
William Harley, 21, and Arthur Davidson, 20, began experiments on taking the work out of bicycling. They were soon joined by Arthur 's brothers, Walter and
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Sales of Buell motorcycles (which are distributed through select Harley-Davidson dealers) increased to $14 million in 1995 as compared to $6 million in 1994. The Company began 1995 at a scheduled motorcycle production rate of 395 units per day. As the implementation of the manufacturing strategy continued, the rate increased to 470 units per day by the end of the year. The Company exceeded its production goal of 100,000 units in 1995 and anticipates 1996 production will reach at least 115,000 units.
The Company is currently reviewing alternative sites for the construction of a new manufacturing facility to enable it to achieve its long-term goal of doubling motorcycle production by 2003. Year-end data indicates that the domestic (United States) motorcycle market continued to grow throughout 1995.
Compared to 1994, industry registrations of domestic heavyweight (engine displacements in excess of 751cc) motorcycles were up 11.3% . The Company ended 1995 with a domestic market share of 55.8% compared to 56.1% in 1994. This decrease is a reflection of the Company 's constrained production capacity in a growing heavyweight motorcycle market. Demand for the Company 's motorcycles continues to exceed supply with nearly all of the Company 's independent domestic dealers reporting retail orders on all of their remaining 1996 model year motorcycle allocations (production through June, 1996). Export revenues totaled $394.8 million during

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