1. If you were CEO of Harley- Davidson, how would you compare the advantages and the dis advantages of using exports , joint ventures, and foreign subsidiaries as ways of expanding international sales? a. If I were the CEO of Harley- Davidson, I see only upsides from joint ventures and foreign subsidiaries as types of insourcing. I say this due to the fact that the countries like Germany and Japan each had a helpful hand in the production of our motorcycles. That being said co ownership by both the US and these other countries would be fine as long as regulated and that main ownership remained stateside in the US. The disadvantage I do see is the notion of a strategic alliance given our company past …show more content…
I do believe that the locals should play a major role in the salesmanship of the bikes but right from the start I would have a mix of locals and expatriates. Since the bikes would be new to the area I believe that we should introduce new people also who would further show the people of that area our commitment to not only our bikes but also the area itself. The criteria that I would recommend to the CEO when he send expatriates, would be to makes sure that the people sent over know exactly the type of brand we are trying to convey to the people and also make sure they can educated and train the locals on our brand because the expatriates role over there is to educate so they can come back stateside once the brand has been built up in the new area. 4. Is it accurate to say that Harley is still “on top of its game”? How well is the company performing today in both he domestic and global markets? Who are its top competitors in the other parts of the world, and how well does Harley compete against them? Does the electric Harley have what it takes to fuel the company’s next stage of global growth? a. As far as Harley Davidson being on top of its game I would say that as far as the US is concerned it has a lock on its target audience that has been the say since the 1980’s. I believe that the new
Question #1 If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
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 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.
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 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).
The most distinctive feature of Harley was the V-twin engine giving the Harley motorcycles a aggressive appearance and the ability to deliver broad but low-torque power.
The overall intensity of rivalry in the motorcycle industry is strong, key players in this industry include the Harley Davidson, Winnebago, Polaris, Thor, Artic Cat and Marine Products. These top performers hold a high percentage of
One weakness they have is the high prices of their models when compared to their Japanese counterparts. It seems that they could increase their market share if they could produce a less expensive model without compromising the quality of the model. A major strength they have is their name recognition and the activities available for Harley owners to interact with each other. Groups such as the Harley Owner’s Group (HOG), and the Buell Riders Adventures Group (BRAG) often sponsor rallies for their members.
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 has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
The strength of Harley Davidson can be seen in its logo and product brand. In the United States, the Harley Davidson is like a cult since it has so many followers, as depicted in the case study whereby in all the rallies, hard core fans of the company, for example the Harley Owners Group was present. This gives the company a competitive advantage since it has a market that is readily available and willing to purchase its products no matter the cost. The other strength of the company as seen in the case study was in the protection by the government since it was a United States company. This helped Harley to recover when the company placed an increase on the tariffs charged on the
The website of Harley Davidson gave us a new concept of Motorcycles! The extension of this website is exceptional. The virtual Customer Service in this website is notorious and extremely helpful. From other motorcycles websites this is one of the most professionals ones where the customer can get a flavor of the company from products up to their businesses profits and others...Harley Davidson publishes material related to all aspects of their motorcycles and provides to their own and the general public good information, expanding their products and other services with local information for countries around the world. Their information and technology, including digital libraries, metadata, authorization 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.
Rivalry Competition: Harley Davidson has a High Rivalry Competition. HD deals with a huge amount of competition in the Motorcycles industry from other motorcycle manufacturers from around the world. These include Honda, Yamaha , Suzuki from Japan; Ducati, Aprilia, BMW and Triumph from Europe; and the Indian as its main rival from the US. The major problem HD faces here is that most of its major competitors are very diversified and have larger financial and marketing resources. For example, Yamaha generates only half of its revenue from motorcycles. The growth rate of this particular industry is forecasted to be 3.4%.
The Buell division needs to continue to produce a quality motorcycle under Harley’s brand name