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Harley-Davidson Motor Company: An Industry and Company Analysis
William Duncan Todd Todd Bailey
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Table of Contents: Brief History & Introduction…………………………………………………………………………….. .....3 Eternal Analysis! Industry "#er#ie$………………………………………………………………………………… ….% eneral En#ironment…………………………………………………………………………… …...' T(e Industry En#ironment! )orter*s +i#e +orces………………..…. ………………...',Competiti#e +orces & Ad#antaes…………………………………………………….………../
Internal Analysis! +inancial Analysis……………………………………………………………………..…………… /,0 Tanile & Intanile 2esources…………………………………………………………...0,1 Core Competencies………………………………………………………………………… …….…1 4W"T Analysis………………………………………………………………………... …………1,15 Harley,Da#idson*s Current 4trateies…………………………………. ………………15,1%
3 6a7or )rolems………………………………………………………………….. …………………..1% +uture 4trateies………………..………………………………………….. …………………..1%,1'
Biliorap(y…………………………………………………………………………… ………………..............1-
Brief History & Introduction: Harley,Da#idson 6otor Company W(en as8ed aout t(e staples of American society9 a fe$ t(ins :uic8ly come to mind! C(eeseurers9 Co$oys and Indians9 Walt Disney9 ;e#i 4trauss 7eans9 and of course9 Harley,Da#idson motorcycles. +ounded in 1<3 y William Harley and Art(ur and Walter Da#idson9 Harley,Da#idson 6otor Company (as een at t(e center of American 4ociety for o#er one (undred years.
% T(e company ean $it( a modest model $it( a =t(ree, (orsepo$er enine and $as made in t(e Da#idson*s family s(ed> ?rant9 '55@. T(eir net model9 a t$o,cylinder9 ,t$in enine9 irt(ed t(e classic deep rumlin sound t(at (as ecome synonymous $it( Harley. After t(e =closure of t(e Indian 6otorcycles factory in 4prineld9 6assac(usetts in 1<'39 Harley ecame t(e sole sur#i#or of t(e 1' 4 motorcycle producers t(at (ad eisted in 1<1> ?rant9 '55@. T(e company did not o $it(out its c(allenes9 (o$e#er. T(e post$ar era rou(t alon =increasin auence and t(e rise of yout( culture t(atF created a ro$in demand for motorcycles> ?rant. '55@. Alt(ou( Harley (ad a stron place in t(e 49 most of t(is demand $as satised y forein imports. Britis( companies9 B4A9 Triump(9 and Gorton too8 %< of t(e 4 mar8et $it( t(e apanese increasin t(eir s(are. Honda*s tec(noloical inno#ation of t(e four,cylinder CB/'9 $(ic( re#olutioniJed t(e motorcycle industry9 $as miles a(ead of t(e tec(noloy of Harley or t(e Britis( companies. E#entually9 Harley $as ac:uired my A6+9 $(ic( led to o#erproduction and a sinicant drop in :uality9 ultimately causin nancial losses and less of t(e mar8et s(are. Harley*s senior manaers le#eraed t(e uyout of t(e company from A6+ in 1<01. In 1<01 and 1<059 t(e company =lost a total of K- million> ?rant9 '55@. After analyJin apanese ust,in,time production systems9 Harley $as ale to ma8e its production capailities more eLcient. In 1<0-9 Harley (ad increased sales to protaility enou( to o pulic. In#estments in ne$ models and increasin demand led to sales =eceedin K39 as of 5%9 a tenfold on 1<03>?rant9 '53@.
External nalysis
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Industry "#er#ie$ In t(is analysis9 Harley,Da#idson 6otor Company $ill e classied as part of t(e Hea#y$ei(t motorcycle industry. Accordin to 4tatista.com9 t(is industry in t(e 49 as did many ot(ers9 too8 a lare (it in total re#enue after t(e 2ecession of 509 dippin from K-9-3/.5 million in 50 to K%913-.1 million in 5< and only increasin to K%9%1<.1 million y 515 ?2e#enue of t(e .4. 6otorcycle 6anufacturin Industry from 51 to 515 ?in 6illion .4. Dollars@@. As of 5159 t(e mar8et $as s8e$ed in fa#or of Harley,Da#idson9 $(o controlled 3' of t(e mar8et9 follo$ed y Ma$asa8i and Nama(a ?1'@9 Honda ?1%@9 and 4uJu8i ?0@ ?Ha$8es9 Matelyn@.
!" Heavy#ei$%t Motorcycle Mar&et "%ares '()*(+ Harley,Da#idson Honda
1 3 3 5 5 0
Ma$asa8i Nama(a 3-
4uJu8i MT6 Can,Am
1'
Ducati Triump( 1'
)olaris 1%
ltimately9 until t(e economy s(o$s impro#ement and consumers feel comfortale enou( to spend on luury items9 t(e (ea#y$ei(t motorcycle industry $ill continue to s(o$ minimal ro$t(.
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T(e eneral En#ironment Economic: T(e 2ecession of 50 still continues to eOect uyin (aits of consumers. Due to t(e strules9 purc(ases of luury items li8e cruisin motorcycles (a#e dropped and (a#e only slo$ly increased9 as s(o$n y mar8et re#enues as stated ao#e in t(e Industry "#er#ie$.
Tec%nolo$ical: Apple and oole (a#e eun researc(in and producin automated dri#in tec(noloy t(at remo#es t(e need for (uman operation of #e(icles. 6odels of automated dri#in #e(icles (a#e een produced9 ut (a#e not (it mass production.
,olitical.e$al: 2eulatory c(allenes (a#e restricted t(e ro$t( of leisurely motorcyclin in forein countries li8e C(ina. C(allenes include diLculties ettin motorcycle license plates and =)GC reulations an motorcycles in many city centers and on ele#ated motor$ays> ?;u89 osep(@. Also9 a compulsory scrap policy re:uires all i8es e scrapped after 11 years.
Demo$rap%ic: A enerational s(ift from t(e Bay,oomers to 6illennials is s(o$in t(rou( product and style trends. As 6illennials ein to enter t(e $or8force9 Bay,oomers are retirin and lea#in it.
T(e Industry En#ironment! )orter*s +i#e +orces Bar$ainin$ ,o#er of Buyers: T(e po$er of uyers in t(e (ea#y$ei(t motorcycle industry is relati#ely (i( considerin t(at companies in t(is mar8et are (ea#ily
/ dependent on certain demorap(ics. Bay,oomers9 $(o (a#e een t(e main taret demorap(ic for t(e industry9 are ettin to t(e ae of retirement and losin t(e p(ysical aility to (andle (ea#y$ei(t motorcycles. Companies must no$ mar8et and adapt to t(e 6illennials9 $(o typically are more in fa#or of sport and performance i8es instead of (ea#y$ei(t cruisers ?Wolter9 6ac8enJie@.
Bar$ainin$ ,o#er of "uppliers: Companies usin t(e preferred suppliers met(od creates more po$er for t(e supplier as contracts allo$ for lon,term areements t(at increase :uality of t(e suppliers. ;on,term contracts create trust et$een supplier and t(e companies.
T%reat of /e# Entrants: Due to a (i( capital in#estment and a mature industry9 t(e t(reat of ne$ entrants in t(e (ea#y$ei(t motorcycle industry is lo$. Brand name9 suc( as Harley,Da#idson9 adds to t(e emotion and eOect of ridin a (ea#y$ei(t motorcycles. Harley (as ecome a part of American society so ne$ entrants $ill (a#e to compete aainst (i( :uality and (i( rand reconition ?Wolter9 6ac8eniJie@.
T%reat from "ubstitutes: T(e main sustitutes for (ea#y$ei(t motorcycles include cars9 scooter i8es9 and sport i8es. 6illennials9 $(o are ecomin a reater portion of t(e o#erall uyers mar8et as Bay,oomers ein to reac( aes $(ere ridin and uyin i8es9 tend to prefer sport i8es to t(e traditional (ea#y$ei(t cruisers ?Wolter9 6ac8enJie@.
0ivalry from Existin$ ,layers: T(ere are four ma7or players in t(e (ea#y$ei(t motorcycle mar8et! Harley,Da#idson9 Nama(a9 4uJu8i9 and Honda. B6W9 Ma$asa8i9 and Ducati also (a#e (i( rand reconition. Go rand controls more t(an 3' of t(e mar8et. T(erefore9 $(en considerin t(e tec(noloical capailities and :uality of t(e products t(at are fairly similar9 t(e ri#alry from eistin players is moderately (i( ?Ha$8es9 Matelyn@.
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4trateic roups Harley*s main competitors9 Nama(a9 Honda9 4uJu8i9 B6W9 and Ducati9 all must compete $it( Harley*s eceptional rand reconition. +ocusin on t(is rand reconition places Harley and competitor9 Ducati9 in t(e rst strateic roup! Eperience focused. W(ile Harley (as up,to,date tec(noloy9 t(eir main strateic ad#antae is t(e eperience of dri#in a Harley P t(at loud9 rumlin noise and s(o$in oO t(e $ins on t(e rand $(ile ridin t(at classic (ea#y$ei(t cruiser. "ne issue t(at presents itself to Harley and t(is roup is t(e diLculty of etendin to o#erseas countries. "ne reason t(at t(is roup strules in forein countries li8e C(ina is t(at most people in C(ina use i8es to commute to $or8 and loud9 (ea#y$ei(t i8es are not ideal for daily commutes ?;u89 osep(@. Companies li8e Nama(a and Honda (a#e al$ays een on t(e forefront of tec(noloical inno#ation. Honda $as t(e rst company to release t(e four,cylinder CB/'. T(ey represent t(e second strateic roup! )erformance +ocused. T(ese companies are ale to perform etter in countries li8e C(ina and apan due to t(at demorap(ics* demand for (i( performance sport i8es t(at are easy and eOecti#e for daily commutes. Companies li8e Harley in 51 (a#e eun to produce =small9 easily aOordale i8es P suc( as mopeds P used for asic transportation> ?;u89 osep(@.
Internal nalysis +inancial Analysis
< Harley,Da#idson*s nancials are a 8ey component on internally analyJin Harley,Da#idson and (o$ $ell t(ey are performin y comparin t(em aainst ma7or ri#als. "n pae '3- of case / in Appendi 5! Comparati#e +inancial Data for Honda9 Nama(a9 and Harley,Da#idson9 $e $ere ale to compare and analyJe t(eir performances. Endin 5119 Harley,Da#idson (ad t(e (i(est ross marin percentae at %59 / (i(er t(an Nama(a and 1% (i(er t(an Honda 6otor. Ho$e#er9 its net marin endin 511 $as K, 19%99 $(ic( $as $ell elo$ Nama(a and Honda 6otors. Its operatin incomeQassets percentae $as (i(est of t(e t(ree. Its in#entory turno#er also eceeded ot( Honda and Nama(a 6otors. It (ad a remar8ale return on e:uity in 511 $it( 5' compared to Honda*s 13 and Nama(a*s 5. By 6ay 5159 t(e rst,:uarter nancial results s(o$ed a year,on,year re#enue ro$t( of 1-./ and a net income ro$t( of %%.39 and Wendell anticipated t(at it $ould enerate cost sa#ins of around K31 million o#er t(e year ecause of Harley*s restructurin proram ?rant9 '35,33@. 4o9 Harley,Da#idson loo8s to e on trac8 after $itnessin its rst net in 5
Tanile & Intanile 2esources W(en analyJin t(e Harley,Da#idson Inc. case9 t(e internal analysis part re:uired t(at $e distinuis( et$een Harley,Da#idson*s tanile and intanile resources. T(e rst ma7or step $as to determine its ma7or tanile resources! property9 plant9 and e:uipment. Harley,Da#idson*s tanile resources are comprised of its super,(ea#y$ei(t and (ea#y$ei(t motorcycle ?o#er -'cc@. T(e (ea#y$ei(t motorcycle mar8et is comprised of t(ree sements! cruiser motorcycles9 tourin motorcycles9 and performance
1 motorcycles. As of 5119 Harley,Da#idson (ad a mar8et s(are of retail sales of (ea#y$ei(t motorcycles in Gort( America at ''./9 Europe at 13./9 Asia,)acic at 519 and ;atin America at /. "t(er resources t(at contriutes to Harley,Da#idson*s performance is its ot(er products contriutin to re#enue includin sales of parts9 accessories9 and clot(in and collectiles. In 5119 sales of t(ese ot(er products represented 1%.0 of total re#enue. In 5119 Harley, Da#idson*s non,motorcycle sales of parts and accessories $ere K01-9'9 and eneral merc(andise $as K5/%919. Harley, Da#idson*s dealers(ip net$or8 contriutes to its tanile resources. In 5119 t(e 4 mar8et (ad -3' dealers(ips9 Canada $it( -< dealers(ips9 Europe $it( 3-<9 Asia,)acic (ad 539 and ;atin America (ad %% dealers(ips. T(e dealers(ips (elp penetrate international mar8ets. Harley,Da#idson placed emp(asis on its manufacturin operations9 and9 in 5119 Harley,Da#idson (ad 1' main facilities located in t(e 49 India9 BraJil9 and Australia ?rant9 '539 '50,3@. T(e net step in our Internal analysis of Harley,Da#idson Inc. $as to determine t(e intanile resources! tec(noloy9 s8ills9 rand9 and reputation. Harley,Da#idson*s intanile resources are 8ey in distinuis(in itself from ot(er competitors. Considered one of its reatest assets9 Harley,Da#idson*s rand imae and customer loyalty are one of its ma7or competiti#e ad#antaes. Its =famed spread eale sinied not 7ust t(e rand of one of t(e $orld*s oldest motorcycle companies ut also an entire lifestyle $it( $(ic( it $as associated>9 and (as een descried as =t(e ultimate i8er status symol. . . a :uasi reliion9 an institution9 a $ay of life> ?rant9 '5%@. T(e rand ecame central to t(e company*s mar8etin and stratey ecause it reconiJed t(at it $as sellin t(e Harley Eperience. Harley,Da#idson increased its reputation $it( its customers y creatin t(e Harley "$ners* roup ?H"@. H" allo$s t(e company to ecome in#ol#ed in oraniJin social and c(arity e#ents9 and it pro#ided t(e oraniJational
11 lin8 for t(is sense of community. T(e H" increases customer loyalty9 and it $as reSected in t(eir continuin in#estment in Harley products ecause almost (alf t(e sales $ere to repeat customers ?rant '5'@. Harley,Da#idson felt t(e need to impro#e dealer de#elopment to =increase support for dealers $(ile imposin (i(er standards of pre, and after sales ser#ice9 and re:uirin etter dealer facilities> ?rant9 '5/@. T(ey $ere ale to epand t(eir oOerin of rane of ser#ices suc( as! ser#ice and repair9 nancin9 test,ride facilities9 rider instruction classes9 motorcycle rentals9 consultin ser#ices for customiJin i8es9 and insurance ser#ices. 4ince dealer relations $ere a strateic priority9 its 2etail En#ironments roup estalis(ed a set of standards and uidelines. T(ey estalis(ed t(e Harley,Da#idson ni#ersity to =en(ance dealer competencies in e#ery area9 from customer satisfaction to in#entory manaement9 ser#ice prociency9 and front, line sales> ?rant9 '50@. T(e ni#ersity (elps employees ain s8ills needed for $or8. Harley,Da#idson also relies on its nancial ser#ices to enerate prot. T(e Harley,Da#idson +inancial 4er#ices ?HD+4@ arm supplyin credit9 insurance9 and etended $arranties. In 5119 t(e HD+4 attriuted to K-%<9%9 in sales. ;astly9 t(e intanile resources include patents t(at $ere usually related to perip(eral items suc( as! saddlea mountin systems9 foot,pes9 seats9 ac8rests9 electrical assemlies9 and motorcycle music systems. Bet$een 5 and 5159 Harley,Da#idson $as a$arded 100 4 patents ?rant9 '5-@.
Core Competencies Harley,Da#idson*s core competency (as een its root of success in de#elopin a competiti#e ad#antae o#er its ri#als. "ne ma7or core competency of Harley,Da#idson is its rand imae and customer relations(ips. T(e formation of t(e H" allo$ed for Harley,Da#idson to connect $it( its customers t(rou( e#ents and c(arities9 allo$in t(em
15 to promote loyalty and uild comradery amonst its employees and customers. T(e rand (as allo$ed Harley,Da#idson to ain a sense of American culture9 and it (elps pro#ide t(e Harley Eperience ?rant9 '5%,5'@. T(ey placed a stron focus on t(eir dealer de#elopment proram ecause it (elped increase support for dealers $(ile imposin (i(er standards of pre, and after,sales ser#ice9 and re:uirin etter dealer facilities ?rant9 '5/@. T(ey also oOered a $ider rane of ser#ices suc( as! ser#ice and repair9 nancin9 test,ride facilities9 rider instruction classes9 motorcycle rentals9 consultin ser#ices for customiJin i8es9 and insurance ser#ices. T(e Harley,Da#idson ni#ersity (elped pro#ide employees $it( t(e s8ill set t(ey need and to =en(ance dealer competencies in e#ery area9 from customer satisfaction to in#entory manaement9 ser#ice prociency9 and front, line sales> ?rant9 '5/,50@. ;astly9 t(eir HD+4 pro#ided nancial ser#ices t(at are fundamental in contriutin to t(eir success.
4W"T Analysis "tren$t%s: 4trent(s (elp Harley,Da#idson ain a competiti#e ad#antae o#er ot(er companies $it(in t(e industry. T(e rst ma7or strent( Harley,Da#idson possesses is its rand imae and customer loyalty. Harley,Da#idson*s H" allo$ed for Harley,Da#idson to connect $it( its customers t(rou( e#ents and c(arities9 allo$in t(em to promote loyalty9 and it i#es Harley,Da#idson riders a sense of community t(at uilds comradery. T(ey stress (ard to i#e t(e customers* t(e Harley Eperience9 and t(ey implemented prorams li8e t(e Harley,Da#idson ni#ersity to (elp pro#ide ade:uate ser#ices suc( as t(e HD+4. Anot(er strent( attriuted to Harley,Da#idson*s success is its (i( :uality of products. T(ey (a#e a ood product rane $(ere customers can use ser#ice consultants to (elp customiJe i8es. ;astly9 Harley,
13 Da#idson*s sales of ot(er products9 merc(andise and nancial ser#ices9 pro#ide an ad#antae o#er ot(er companies $it(in t(e industry.
1eanesses: Wea8nesses (elp attriute to Harley,Da#idson*s strules and potential performances. A ma7or $ea8ness for Harley,Da#idson is its (i(,:uality products. Because of t(e (i(,:uality products9 t(e price is (i(. T(is can e a $ea8ness ecause9 in a recession9 many customers $ill s(y a$ay from (i( costin items li8e t(ey did so durin t(e 50 nancial crisis. Anot(er $ea8ness for Harley,Da#idson is its product diOerentiation. In 5159 t(ey oOered 3% diOerent models9 ut muc( of its diOerentiation contriuted to style c(anes and ne$ paint desins ?rant9 '5-@. Anot(er $ea8ness is its presence in international mar8etsR Harley,Da#idson (as contriuted muc( of its success from t(e 4 ecause it (as a lare amount of mar8et s(are compared to international mar8ets. ;astly9 Harley,Da#idson (as a limited customer ase ecause its dominance (as een $it(in t(e 4 $it( t(e rand rinin an American style eperience.
2pportunities: "pportunities are essential $(en loo8in for ainin competiti#e ad#antaes o#er ri#al competitors. A ma7or opportunity Harley, Da#idson (as is epansion aroad in emerin mar8ets especially Asia and ;atin America. It (as t(e opportunity to epand products and ser#ices. Because t(ey lac8 on product diOerentiation9 t(ey (a#e an opportunity to epand and oOer ne$ product launc(es. Also9 $it( t(e HD+49 t(ey (a#e t(e opportunity to increase its nancial ser#ices. Harley,Da#idson (as a reat opportunity to tap into $omen9 African American9 and military and #eteran motorcycle riders. ;astly9 Harley, Da#idson can de#elop more fuel,eLcient motorcycles for en#ironmental purposes9 (elpin t(em attract more customers.
T%reats: T(reats imposed on a company $it(in an industry are somet(in t(at needs to e ta8en cautiously. Increasin competition from ri#al
1% competitors al$ays poses a t(reat for Harley,Da#idson9 especially if ot(er competitors (a#e etter nancials and are more di#ersied. A ma7or t(reat t(ey are facin is if t(e net co(ortseneration U and eneration N(a#e t(e same cultural #alues t(at t(e ay oomer eneration represented. T(e a#erae uyin ae of Harley,Da#idson motorcycles are increasin9 so t(ey are facin a t(reat in appealin to t(e upcomin enerations. ;astly9 en#ironmental protection la$s can pose a t(reat on Harley,Da#idson if t(e la$s pro(iit some of t(eir products.
Harley,Da#idson*s Current 4trateies After ta8in o#er CE" of Harley,Da#idson9 Inc. on 6ay 19 5<9 Meit( Wendell $itnessed a period of declinin output and sales9 and (e $as t(e rst CE" to $itness Harley,Da#idson post a net loss in 5<9 its rst in 5' years ?rant9 '5,51@. Wendell needed to ta8e action to t(e crisis t(ey $ere dealin $it(9 so =Wendell*s initial actions included restorin fundin for Harley*s consumer lendin acti#ity9 cuttin ac8 production9 layin oO employee9 discountin Buell ran and closin its plant9 and puttin recently ac:uired 6 Austa up for sale> ?rant9 '51@. His net priority $as estalis(in =a old9 clear strateic direction t(at $ould maimiJe Harley,Da#idson*sF opportunities oin for$ard and restore t(e Company as a stron usiness t(at could consistently ro$ o#er t(e lon (aul> ?rant '51@. T(e strateic direction included a compre(ensi#e transformation stratey. T(e compre(ensi#e transformation stratey called for a ret(in8in and structurin of t(e Company*s manufacturin operations9 t(e transformation of its product de#elopment system9 and a dri#e to uild distriution and ro$ sales in emerin international mar8ets of Asia and ;atin America ?rant9 '51@. Harley*s product stratey is taretin customers interested in t(e (ea#y$ei(t and
1' super(ea#y$ei(t motorcycles t(at includes cruiser motorcycles9 tourin motorcycles9 and performance motorcycles ?rant9 '53@. T(e stratey =$as t(e idea t(at e#ery Harley rider $ould o$n a uni:ue9 personaliJed motorcycle as a result of t(e company oOerin a rane of customiJation opportunities>9 and Harley,Da#idson (elped $it( t(e customiJation process y oOerin special ser#ices li8e =C(rome Consultin>. ?rant9 '5/@. Anot(er main strateic focus is promotin t(e rand imae of t(e company and impro#e customer relations to (elp i#e t(e customers t(e Harley Eperience. =T(e central t(rust of t(e stratey $as reinforcin and etendin t(e relations(ip et$een t(e company and its customers ?rant9 '5'@. T(e creation of t(e Harley "$ners* roup ?H"@ allo$ed t(em to uild a community and comradery $it( its customers t(at reatly impro#ed customer relations ecause =almost (alf of all sales $ere to repeat customers> ?rant9 '5'@. T(e distriution stratey Harley too8 on $as to pro#ide etter retail eperience9 so t(ey de#eloped a Harley*s dealer de#elopment proram t(at =increased support for dealers $(ile imposin (i(er pre, and after,sales ser#ice9 and recruitin etter dealer facilities> ?rant9 '5/@. T(e impro#ement of facilities and dealer de#elopment allo$s t(em to epand its rane of ser#ices suc( as ser#ice and repair and nancin9 dealers oOerin test ride facilities9 rider instruction classes9 motorcycle rental9 consultin ser#ices for customiJin u8es9 and insurance ser#ices. T(ey estalis(ed its 2etail En#ironments roup to estalis( a set of performance standards and uidelines. T(ey also estalis(ed t(e Harley,Da#idson ni#ersity to =en(ance dealer competencies in e#ery area9 from customer satisfaction to in#entory manaement9 ser#ice prociency9 and front,line sales ?rant9 '5-,5/@. Anot(er stratey $as focused in epandin sales internationally. Because Europe $as in a recession in 5<,5159 e#en t(ou( t(ey $ere t(e second,larest (ea#y$ei(t motorcycle mar8et in t(e $orld9 t(ey focused on increasin t(e ro$t( in international mar8ets of Asia
1and ;atin America. 4o9 estalis(in dealers(ip net$or8s $as 8ey to penetratin t(e international mar8ets. Harley,Da#idson*s supplier ad#isory council ?4AC@ =ser#ed not only to impro#e purc(asin eLciency9 ut also to pro#ide a forum to s(are information9 ideas9 and stratey> ?rant '31@. ;astly9 Harley,Da#idson implemented a ne$ manaement team t(at implemented a ne$ approac( uilt on in#ol#ement9 self,manaement9 open communication9 and team,ased oraniJations ?rant9 '31@.
6a7or )rolem After analyJin t(e case9 $e found t(at t(e ma7or prolem Harley,Da#idson Inc. is facin is t(at its =core mar8et $as t(e ay, oomer enerationand t(is co(ort $as mo#in more to$ard retirement (omes t(an outdoor sports. Would t(e net co(orts eneration U and eneration N(a#e t(e same aLnity for noisy9 (ea#y$ei(t motorcycles and t(e cultural #alue t(at Harley,Da#idson represented> ?rant9 '51,55@. T(e upcomin enerations posed a reat t(reat $it( Harley,Da#idson ecause t(e New York Times noted t(at =as Harley 8eeps most of its focus on its ain customers9 ri#als li8e B6W9 Honda and Nama(a are attractin youner customers $(o seem less interested in cruisin on $(at t(eir old man rides> ?rant9 '3%@.
+uture 4trateies W(en analyJin Harley,Da#idson Inc. case9 $e $ere ale to nd its strent(s9 $ea8nesses9 opportunities9 and t(reats. T(e 4W"T analysis (elped us determine $(ere t(e Company stands amonst its competitors and (elped us identify t(e ma7or prolem t(e Company is facin. 4o9 our stratey loo8in for$ard is to (elp Harley,Da#idson ain a competiti#e ad#antae o#er its ri#al competitors. "ur rst and ma7or recommended stratey for Harley,Da#idson Inc. is to focus more on t(e
1/ performance motorcycle sement ecause it $as t(e most important sement in t(e European and Asia,)acic mar8ets9 representin -5 and -' of total (ea#y$ei(t i8e sales respecti#ely ?rant9 '5%@. Because Harley*s taret customer eneration is ain and is set to decline 5.' et$een 51 and 51'9 $e t(in8 t(at promotin performance motorcycles $ill (elp t(em attract t(e ne$ eneration of customers enterin t(e mar8et ?rant9 '33@. Also9 since performance motorcycles represent a (ue mar8et s(are in European and Asia, )acic mar8ets9 $(ic( Harley,Da#idson operates in9 $e elie#e t(is to e a reat strateic mo#e mo#in for$ard. Anot(er strateic recommendation $e (a#e for Harley,Da#idson is t(e tap into t(e tri, motorcycle mar8et. We nd t(is an appealin mo#e especially since it $ill taret t(e ay,oomer eneration t(at (as een t(eir focal point for customers. T(e reason $e ll t(is strateic mo#e $ill e a reat mo#e is ecause t(e tri8es oOer additional safety and etter control t(at appeals to t(e ain of t(e ay,oomer eneration. Got only $ill t(is allo$ t(e Company to attract its oriinal customer roup9 ut it $ill also (elp attract $omen and ot(er potential customers $(o did not feel safe ridin an oriinal motorcycle. ;astly9 $e recommend t(at Harley,Da#idson continue product epansion and continue to tap into roadenin its demorap(ic ase $it( prorams taretin $omen riders9 =Harlistas> ?;atino riders@9 =Iron Elite> ?African American riders@9 and =Harley*s Heroes> ?military and #eteran riders@ ?rant9 '3%@. By doin so9 its customer ase $ill epand allo$in it to pro#ide more product diOerentiation.
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Biliorap(y Wor8s Consulted! Grant, Robert M. "Case 7." Contemporary Strategy Analysis: Text and Cases. Hoboken, NJ: Wiley, 2012. 520-57. !rint. Hakes, #atelyn. "Harley-$a%i&son Me&ia !lan." Linkedin.com. N.'., n.&. Web. ()tt':**.sli&es)are.net*#atelynHakes*)arley&a%i&son-+e&ia-'lan-107. /k, Jose'). "Harley-$a%i&son in C)ina." China Business Review. N.'., n.&. Web. ()tt':**.)inabsinessre%ie.o+*)arley-&a%i&son-in-)ina*. Melie, Mark, 3yen 4n&aar&, Jor&an Hat)aay, an& 2006 'ril . "8tratei Re'o rt or Harley-$a%i&son." Strategic Report or !arley "avidson 9n.&.: n. 'a. Web. ()tt':**eono+is-iles.'o+ona.e&*;likens*8enior8e+inars*'an&ora*re'orts*)arley.'&. "Re%ene o t)e <.8. Motoryle Manatrin =n&stry ro+ 2001 to 2012 9in Million <.8. $ollars." Statista.com. N.'., n.&. Web. ()tt':**.statista.o+*statistis*252216*re%ene-o-t)e-s-+otoryle-+anatrinin&stry*.
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Wolter, Maken>ie. "Case 8t& y : Harley-$a%i&son." #acken$ie %olter Case Study &: !arley "avidson '()(*+ 92012: n. 'a. Web. ()tt':**'aes.stola.e&*is+olter*iles*201*0*Case-8t&y-Harley-$a%i&son.'&.
