Harley Davidson is a leading American motorcycle manufacturer known for its cruiser style motorcycles. Founded in 1903, Harley Davidson has grown to sell a variety of motorcycle and lifestyle products. It dominates the US motorcycle market with nearly 50% market share but faces challenges expanding internationally where it holds only 7.7% of the European market. While Harley Davidson has strong brand loyalty and financial performance in the US, it will need to diversify its product line and expand its global presence to maintain long term success as demographic and competitive trends evolve.
2. Brief Information of Company
Harley Davidson is one of the best motorcycle
producer in world. This company not only produce
motorcycle but also produce boat, t-shirt, bag, leather
Jacket ,helmet and kind accessories, etc. Thanks to
selection HD ,their customer’s life style obvious that
show their freedom.
4. History of Harley
1901–William S. Harley, age 21, completes a blueprint drawing of an engine
designed to fit into a bicycle.
1903 – William S. Harley & Arthur Davidson (Walter)
1909 – First V-twin powered bikes, it became most enduring icons of Harley
Davidson history.
1917 – 1/3 rd of the bikes were sold to the U.S military, at last 20,000 HD
bikes were used in World War I (1918).
1920 – HD dealerships spread across 74 countries.
1930–Bill Davidson, Jr. wins the Jack Pine endurance contest with 997
points of 1,000.
5. 1943–Harley-Davidson receives the first of its four Army-Navy "E" Awards for
excellence in wartime production.
1955–Harley-Davidson produces almost 60,000 WLA models during the war for
military use.
1987 – Entered into American & New York stock exchanges.
1998–A new assembly facility opens in Manaus, Brazil, the first operations outside of
the U.S.
2001 – Two big plants constructed in Milwaukee & Kansas cities.
2004–HD recorded its 19th
consecutive year of record earnings
2009– Harley-Davidson announces expansion into India.
2010–The XL Forty-Eight is introduced, recalling the raw, custom Sports of earlier
days.
Harley is the only major American Manufacturer of heavy weight motor cycles.
Have more than 15,000 employees.
History of Harley
6. Values are the heart of HD business, they guide our
actions and serve as the framework for the decisions
and contributions our employees make at every level
of the Company.
Tell the Truth.Tell the Truth.
Be Fair.Be Fair.
Keep Your Promises.Keep Your Promises.
Respect the Individual.Respect the Individual.
Encourage Intellectual Curiosity.Encourage Intellectual Curiosity.
Value
s
7. Product extensions Motor Cycles
Bike accessories
Buell motor cycles:
wholly owned subsidiary of
Harley by 2003 (closed
now)
14. Economic Forces
• HD is the largest manufacturer of heavyweight
motorcycles in the world by market share, capturing half
the U.S. market and a third of the global market
• As a luxury good, HD competes primarily on design
and quality, rather than price, which keeps margins high;
gross margin in 2011 is projected to be approximately 34%
• Harley Davidson announces a 73.5% increase in
income in year-ago comparisons, totaling $119.3 million
for the first quarter of 2011 Increases in income were
driven by a 1.5% increase in revenue, totaling $1.22 billion
for 2011
15. Technological Forces
• Computer-based inventory control systems could play a role
in managing motorcycle inventories
• Technology also impacts design
• Modern motorcycles also are relatively free of oil leaks,
vibration, and are more comfortable than those of the past
• Communication across continents is easier and cheaper than
ever before because of computer-based inventory control
systems
16. Social, cultural, demographic, and natural
environment forces
• As aging couples with excess income are Harley Davidson’s target
market, the aging population growth and income growth are good
signs for the company
• The U.S. veteran population has increased by 1.1% , Veterans tend
to be motorcycle owners so sign of market segment growth for
Harley
• Motorcycles are mostly used during warmer months which are
generally March through August in the northern United States and
Canada so the motorcycles riders intend not to buy motorcycles until
they can ride them.
• The United States has the greatest income inequality among
developed nations ,This indicates a large (growing) potential market
size for Harley Davidson as it is the leader in the Motorcycle market
with about 50% market
• The changes in the lifestyle of the majority of youth population the
world-over has resulted in an enhanced business for HD
17. Political, governmental and
legal forces
• The Environmental Protection Agency (EPA) regulates
automobile and motorcycle emissions
• Future revisions could negatively impact the motorcycle
industry. Steel prices increased 57% and aluminium increased
by 24%, so that the cost increases on to consumers, thus
raising the price of the product
• The environmental protection laws create on additional
pressure for companies
• Human resource legislation mostly in favour of the
employees also does have an impact on the profitability of the
company
• The internationalization of the business of the company is
concerned the moving of production facilities to those
locations
18. Competitive Forces
• Its main competitors are Honda and Yamaha based on their
world-wide market share
• Harley’s competitors are more diversified, they are less
vulnerable to industry changes
• Honda and Yamaha also offer products that sell well in the
international markets compared to Harley
• Harley products are more expensive than its competitors, but
are known for service and saleability
• Touring bikes have increased in popularity with each year.
Victory, Honda, Suzuki, and Harley have expanded their
touring line of motorcycles to cater to the aging market.
Harley offers eight variations of the touring motorcycle
19. INTERNAL FORCES
• To determine HD’s strengths and weaknesses, an internal
assessment is required
• Harley only has 7.7% of European market share (the second
largest motorcycle market in the world), and 25.3%of the
Asia/Pacific region
• Harley-Davidson’s strengths are in the U.S. market, as 80%
of Harley’s net revenue comes from U.S. sales
• Harley was viewed as sub-par when compared to British
motorcycles
• Harley has a reputation for style and quality
20. INTERNAL FORCES(con’t)
• Harley-Davidson also introduced water-cooled engines, fuel
injection, and catalytic converters to improve exhaust
emissions
• Harley’s strength in this area is largely due to its marketing
abilities in the U.S. market
• Harley customers are extremely loyal to their brand and 90%
of Harley owners intend to purchase another Harley
• Management information systems could be used to more
effectively manage inventory at Harley .This is currently one
of Harley-Davidson’s few internal weaknesses
21. PORTER Five Forces Analysis
Forces Strategic Significance
Internal Rivalry LOW-MODERATE
Threat of New Entrants LOW
Threat of Substitutes
Products
LOW-MODERATE
Bargaining Power of Buyers LOW
Bargaining Power of
Supplier
HIGH
24. Harley-Davidson 46.40%
Honda 20.20%
Suzuki 9.80%
Yamaha 9.30%
Kawasaki 7.10%
BMW 2.50%
Other 4.60%
The following table details the market
share by region:
North American Market Share
29. STRENGTHS
Customer retention
Financial position
Product selection
U.S.market share
U.S. dealer Network
OPPORTUNITIES
Increasing number of
riders
U.S. industry growth
Aging population
Asian industry growth
THREATS
Union relations
Aging U.S.population
Competitor diversification
Declining European growth
Availability substitus
WEAKNESSES
Dealer inventory system
International market
share
Expensive product
Product selection
International dealer
SWOT
MATRIX
30. STAR PROBLEM CHILDREN
COW DOG
1.0 0.50 0.0
+30
Industry
Growth
Rate
-30
Relative Market Share
BCG Matrix
Harley-Davidson RELATIVE MARKET SHARE 48%
GROWTH RATE 13.029
31. Conclusion • Harley- Davidson have to change American
culture and helped the future of motorized
vehicles.
• Must implement latest technology &
facilities.
• Loyal customers are not sufficient for
company to survive.
• “it’’s a journey but not a destination”