3. The Company
● Founded in 1903 in Milwaukee, WI by
William Harley and Arthur Davidson
● Largest motorcycle manufacturer in
the world
● Manufactures and sells heavyweight
custom and touring motorcycles, a
line of motorcycle parts, accessories,
general merchandise and related
services
● One of the most familiar and loved
brands in the United States
4. Business Strategy Framework
● “Harley-Davidson's purpose of fulfilling dreams of personal freedom is the foundation
for the Company's core strategies, which include:
○ Delivering high-demand, profitable products and premium retail experiences
○ Strengthening Harley-Davidson through agility and responsiveness to be a leader
in the global marketplace
○ Extending the Harley-Davidson brand's reach beyond core customers and
markets
○ Cultivating great talent, leadership and culture to enable a sustainable future”
5. Customer Value
Proposition
Perceived benefits to customers:
● Functional
● Emotional
● Social
● Self-Expressive
"Harley-Davidson stands for independence, freedom,
individuality, expressing one's self, adventure on the
open road, and experiencing life to its fullest."-Joanne
Bischmann, VP of Marketing for Harley-Davidson
6. Harley Owners Group (HOG)
● Sponsored brand community created in 1983
● 1 million members
● Serves to promote product, and lifestyle
○ Sponsors many motorcycle events, including rallies and rides for Harley
Davidson motorcycle enthusiasts
7. Core
Competencies
● Brand image/loyalty
● Differentiation strategy
● Customization or aftermarket
● Wide distribution network
● Skillful workforce
● Efficient engine technology
● Promoting lifestyle through HOG
8. Problem: Shrinking market share due to...
Foreign competition
● Japanese
motorcycles (Honda
and Suzuki)
● Stylish bikes
● Cost less to
manufacture
● Discounting
Ut enim ad minim veniam,
quis nostrud
High costs
● Heavily unionized
workforce
● Relying on
single/limited
suppliers
Myopic Target Segment
● Core customers are
men over the age of
35
● Baby boomers
segment shrinking
● No new customers
to replace current
customers
10. 1: Penetrate Foreign Markets
● Stop relying on U.S market
● Form strategic alliances and joint
ventures to enable entry into
foreign markets
● Multidomestic strategy- tailor
product extensions accordingly
to meet tastes of geographic
market
11. 2: Lower Costs
● Knowledge of local conditions, sharing of costs, resources, and assets
● Renegotiate delivery costs of components used to manufacture the motorcycle
● Consolidate factories into geographically appropriate areas to reduce shipping
costs to dealerships
● Negotiating concessions from the union to reduce man-hour cost
● Analyze production line for maximum efficiency
12. 3: New Market Segments- Women
● Develop products and services
for females domestically and
internationally
● 28% increase in the last 5 years
● Lower CC models
● Lower seat height
● Lower center of gravity
● Optional automatic transmission
● Campaign “Don’t just go along for
the ride”
13. 3: New Market Segments-Younger Customers
● Recruit younger customers to build
lifetime customer loyalty
● Make new motorcycles more
affordable with lower-interest
financing
● Offer greater customization
● Translate campaigns into the Digital
Age
14. Conclusions
In order to remain a leader in the industry, Harley Davidson should:
● Be more responsive to market trends
● Focus on collaboration and strong supplier relationships to deliver cost and
quality improvement in the long-term.
● Sell products and promote the experience of motorcycling to both core
customers and outreach customers such as women and young adults.
15. Discussion Questions
● Should Harley Davidson lower its prices to appeal to younger
markets? Will this affect their image?
● Do you see any limitations to the viability and growth of HD in the
future?
