INTRODUCTION
Company Mission Statement:
"We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycled and branded products and services selected market segments"
Company Vision Statement:
"Harley-Davidson is n action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, government and society). Harley-Davidson believes the key to success is to balance stakeholders' interests through the empowerment of all employees to focus o value-added activities"
Current Strategy:
Differentiation Strategy
Relevant History:
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The Marketing efforts are divided among dealer promotions, customer events, magazine and direct mail advertising, and public relations. Harley also sponsors racing activities and special promotional events and participates in all major motorcycle consumer shows and rallies
·Independent distributor in Sweden has developed a floating store and restaurant
·Spanish local distributor is adding some new dealers to meet the increasing demand
Corporate Culture:
- Competitive
- Goal-Oriented
- Creative
Internal Evaluation Matrix
Internal Strengths WeightRatingWeighted Score
1. Loyalty of its Customers .104.4
2. Harley is the only major American motorcycle manufacturer.104.4
3. Most admired and recognized companies in the world.053.15
4. Has strong financial position/performance.124.48
5. Features, styling, and high performance of its product.053.15
6. Strategic Management.104.4
7. Harley's name is widely recognized in Australia.053.15
8. Harley has used the industry in domestic sales of heavyweight motorcycles.104.4
9. Harley has double-digit growth in both revenue and earnings for more than a decade.053.15
Internal Weakness
1. The resale price for a used Harley-Davidson motorcycle is higher than it's competitors .082.16
2. The performance segment of the market is served by the Buell motorcycle line.051.05
3. The price of its products are
A long standing business practice at Harley-Davidson is “Excellent Corporate Governance” (Harley-Davidson, 2010b ). Last year (May 2009), Harley-Davidson welcomed its new President and Chief Executive Officer, Keith E. Wandell. Working with Mr. Wandell, is the Board of Directors,
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.
Harley-Davidson treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
The Harley-Davidson company has sold two-hundred-and-twenty-three-thousand-twenty-three units, and showed a thirty-nine percent pricing growth. In two-thousand-ten it sold two-hundred and twenty-six-thousand units, and the improvement was two to two point five percent, since two-thousand-six to twenty-ten even though sales for the CAGR were falling, in two-thousand-six to two-thousand-ten there was still a growth of sixteen point seven percent, (Forbes, (2014).
There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.
As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.
Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.
The use of priceless advertising concluded with leather jackets, T- shirts, chaps, boots, caps, helmets and other accessories. Also it conducted Motor Cycle rallies improving its dealer network to broaden its appeal to new customers. Further it improved the motorcycle displays, apparel and other merchandize that cyclist wished to purchase.
Then in return, these stakeholders will continue purchasing their products throughout their life time due to their unforgettable experience they have doing business with Harley-Davidson. Harley-Davidson believes the backbone in their business is their strong brand name and their loyalty with customers.
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.
We think it would be interesting to quote first Harley-Davidson 's mission, in order to get a first approach of what is the purpose of the company from their point of view. The mission talks first about dreams, rather than motorcycles, which is what the public has in mind. This mission says:
The Internet provides multiple opportunities for customers to interact with the company at various points throughout the sales cycle. Moreover, Harley-Davidson uses the Internet to implement their positioning strategy. The company uses their Web site to connect with customers and prospects to establish and reinforce the identity of Harley-Davidson motorcycles. As one Harley enthusiast notes "When it comes to motorcycles, no other name carries the mystique, prestige or respect as that of Harley Davidson. Harley riders are more than motorcycle enthusiasts with the penchant for a name brand; they are instead members of an elite fraternity of riders known throughout the world" (Willis, 2012).
Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
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