Harley-Davidson, Inc.

: Case Study

Harley-Davidson, Inc.: Troubled Times Increase H-Ds Reliance on International Sales C OBrien

Harley-Davidson, Inc.: Case Study Harley-Davidson, Inc.: Troubled Times Increase H-Ds Reliance on International Sales

In the case study about Harley-Davidson it presents problems of how to increase international sales during difficult sales times in their headquarters country of the United States. Throughout the case it talks about the history of Harley-Davidson briefly in the beginning but gets into the topic of luxury goods which motorcycles from Harley are considered to be a luxury product worldwide. Different international markets have an increasing desire for luxury items and more people are looking to have the high-quality products more often. It furthermore goes into the market for international heavyweight motorcycle which is Harley-Davidsons specialty and focus (Cullen & Parboteeah, 2011 pg. 195). In every other market or business area there are competitors domestically and internationally. Specifically Harley-Davidson has six major competitors who impact their business in the United States but also globally. Finding proper ways to rise above their competitors is a major concept for Harley to look at which would help increase their international sales. Later in the case there is a detailed outline of The Harley-Davidson company of 2008, it details the companies, strategy of the entire business mainly towards financial services, the human resources management, operations of Harley-Davidson, marketing department and organizations, distribution, research and development, Harley-Davidson unit of different emphasizes for the companys products, parts and accessories, and finally financial services unit (197-202. A lot of crucial information is presented in the case about Harley-Davidson towards the entire company and obvious areas of needed improvement for increasing international sales. Identification problems There are a few major issues or problems to be identified within the Harley-Davidson case with troubled times and higher demand of international sales. Harley-Davidson has to grow in size to compete internationally with fellow competitors. With a large portion of their business in the United States, which of recently has not been the great success it has been in the past, they need to start looking and focusing on international levels (193). Growth internationally would open many new doors and could potentially create a profitable future. The next major issue has to do with their production and dealerships having to wait on motorcycles. Demand of motorcycles is there in the international market but if Harley-Davidson invests in increase production then issues could be fixed and less waiting for customers on their purchases. Along those lines if increase production took place Harley-Davidson has the problem of not expanding dealerships internationally. That is a major problem because they have to get into markets to increase revenues and international sales. Implementing more dealerships in proper locations is a necessity and could develop into a large issue with development does not occur. The last and potentially the large issue which Harley-Davidson has is their line of motorcycles. Most of their motorcycles are directed to a certain customer or age group. For international growth to take place Harley-Davidson/Buell has to develop a new type of motorcycle. A lot of competitors have a smaller, attractive style motorcycle which can be consumed in all different markets around the world and it is crucial for HarleyDavidson/Buell to innovate a similar motorcycle to compete and increase their market share (196-197). Analysis The Value Chain The value chain is a good example of how Harley-Davidson conducts their business functions. There is a sense of competitive advantage which Harley seems to have over their competitors (175). A major advantage is the ability to research and development. A lot of finances and motivation is put into

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the research and development of all Harley-Davidson motorcycles which is a positive upstream for the company. Towards the input logistics there is a strong bond with supplies with allows an upside to supply of raw materials and using the right materials (175). Harley-Davidson has chain which flows into the next and how their operations work. With multiple locations around the United States and around the world the manufacturing and assembling plants are efficient and run smoothly to put motorcycles on the showroom floors. On the other hand production can be slow at times and customers have to wait for their motorcycle. When it comes to marketing and sales division of Harley is one of the best with high reviews and positive sales numbers throughout the history of the company (200). On the downstream there are a few things which Harley-Davidson needs to improve, specifically their output logistics because it does take time for the customers products to come into the dealership for the customers. There is one reason why, and it is because Harley does not want to over produce their motorcycles because they are affair it will tamper with their image of quality and other aspects (199). Customers want their motorcycles on the showroom and production pass has to be faster. The last part of the downstream deals with service but also repair, Harley-Davidson has a long line of quality products and having few defects of issues with their motorcycles which is a positive aspect for the value chain. Porters Five Forces Harley-Davidson has different problems presented in the key problems paragraph but there are also analysis essentials to be found in order to find solutions to the problems. Porters Five Forces allows Harley-Davidson to see their different strategies as of the past and how they can fix their strategies towards solving the main problems. The five forces also allows Harley-Davidson to see their strengths and weaknesses they have currently but also from a global perspective. The global perspective is crucial for Harley-Davidson on all different levels including, supplier power, buyer power, competitive rivalry, threats of substitution, and threats of new entry ("Porters five forces:" 2012). With the problems of Harley-Davidson has they need to do a full analysis from all aspects to find proper solutions to their problems. We can first look at the rivalry aspects of the Five Forces because Harley-Davidson has a lot of different competitors who act at rivalries in many different markets. The competition of rivalry helps present the value formulated by an industry, in this case of motorcycles but the head-to-head competition between the rivalries. Harley-Davidson has to be aware of how the intensity of other competitors is in the same industry compared to them. If we look at the other four competitive forces what will determine how intense other competition is in the whole industry. We can look at how intense Harley is around the several different foreign markets. There are the markets of North and South America, European, AsiaPacific, Russia, areas of Africa, and Australia (194-195). On top of that Harley-Davidson has a total of 1,368 dealerships worldwide which include Buell and Harley-Davidson (201). The operations of Harley are through a network of independent dealers and distributors around the world as well. With a heavy presence of its headquarters located in the main country of the United States, Harley-Davidson looks to expand more into other markets globally. Of Porters Five Forces with can look at the intensity of competitive rivalry for Harley-Davidson which is extremely high. There is a large amount of competition in every one of the foreign markets. Harley Davidsons main focus and company way is to design, manufacture, and sell high-quality motorcycles in the market for heavyweight bikes (196). From the case we can see that Harley-Davidson has six major competitors of Ducati, Honda, BMW, Suzuki, Kawasaki, and Yamaha (196-197). All of these competitors for the most part but of the exception of Ducati have come into the United States market where Harley-Davidson wants to control completely with heavyweight motorcycles. Some of the fellow competitors do not have a large market share in the U.S. compared to Harley-Davidson but other

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competitors do. On top of that Harley has high production sale sales volumes in the United States and has dominated the motorcycles industry on domestic unit sales of heavyweight bikes for 20 straight years (195). Four of the six competitors of Honda, Suzuki, Kawasaki, and Yamaha do offer a heavyweight motorcycle which has the traditional design and acts as a rival directed towards Harley-Davidsons wellknown heavyweights. When it comes to the force of threats of new entrants it is low for Harley-Davidson. In todays world and economic standards it is significantly difficult to start a new company of any sorts but more challenging in the motorcycle industry because of the companies which already exist in the industry. If you look at the principal necessities to begin a new company and transform it into a large corporation in time it does not ethically make sense and would take a long time ("Porters five forces:" 2012). Looking specifically at motorcycle giant Harley-Davidson they have a positive culture where employees enjoy working at and have unlimited boundaries of development (199). The loyalty and reputation alone of Harley-Davidson is hard to match for current competitor but more challenging for new entrants. One other factor is how all of the current competitors control a lot of the markets already and would possibly leave a new competitor with no survival chance. A threat of substitutes is medium to low for Harley-Davidson. One major factor would be the customers and changing their desires to a different style of motorcycle or completely moving away from motorcycles and into high-performance motor vehicles. Custom motorcycles seems to be a growing market but have much higher costs for purchasing and also automobiles can be a safe way for consumers to go for instance (196). If we look at the cars and consumers changing to them because of where they live geographically because motorcycles may not be a suitable form of transportation to use and the weather conditions could change in regions over time with weather patterns. There are different factors which may come up over time. Power of suppliers is low to medium. Suppliers play a big factor in any manufacturing business and Harley-Davidson continues to work hard to create already existing and new long-term, mutually beneficial relationships with all of their suppliers (199). With the strong connection they have with suppliers it has given them the ability to have access to technical and commercial resources for ideas specifically to product design, development, and manufacturing ideas. The products being developed and improved by Harley produces better technology factors, new features, and other innovations. One other positive aspect is the luxury for product development at a more efficient, faster manufacturing rate for new motorcycles being introduced to consumers and the markets. Having the strong relationships with suppliers prevents the issue of shortening raw materials or aspects relied on for the supplies (199). HarleyDavidson has a quality management concept which includes many different factors but supplier participation which allows an even strong relationship to be formed. Suppliers have the chance to be involved in design and manufacturing but also are part of a commitment to reducing costs which helps out both Harley-Davidson and the suppliers themselves (199-200). The power of the buyer is fairly low. Harley-Davidson has a large number of dealerships within the United States but also internationally. There are a total of 1,368 with 684 located in the United States and 684 dealerships around the world (201). With a vast number of dealerships around the global it is difficult for dealerships to force down prices, bargaining for higher quality or more services, or playing competitors against one another. With all that being presented for Harley-Davidson to loss one of the dealerships it would not impact the company because of the number of buyers is high and it makes the buyer not as important to the company because of the size. On the other hand if the Harley was much smaller it would be felt by the company for one buyer to be lost. One example though which might not impact the whole corporation of Harley-Davidson but the region is if there was only one dealership in my

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country where the market was profitable. The buying power would be higher in a way, but not much higher. Comparison of Competitors Harley-Davidson has a long line of history worldwide and has been around for over 100 years while still maintaining their strong brand name and loyalty to all customers (193). Along with that there are other competitors established in the same market as Harley-Davidson but also many other markets as well. There are many pros and cons when comparing Harley-Davidson to its competitors. The main competitors include Honda, Suzuki, Kawasaki, Yamaha, BMW, and Ducati (196-197). A first major factor is how all of Harleys major competitors have their headquarters located outside the United States unlike their headquarters located in America (200). Honda is said to be the largest competitor mainly here in the United States because they manufacture their largest amount of motorcycles here. On the other hand Harley-Davidson distributes large quantities to Europe where an Italian company of Ducati leads the performance market. Coming back to the homelands of America there are also domestic competition with custom shops, Big Dog, and Polaris who all sell heavyweight motorcycles (196). In different aspects Harley-Davidson compares well to competitors but in other cases does not. Looking at Ducati Motor Holdings and how Harley-Davidson compares to the strong well-known Italian company. Ducati is known in the motorcycle world as the top performance type with very attractive looks and style. Most people are capable of identifying a Ducati bike when they see one but also with Harley Davidson. When it comes to the European market Ducati is the biggest competitor to Harley towards performance and technological advanced designs (196). In return to match a look and performance of the Ducati, Harley introduced the V-Rod bike which is simply directed towards the high end quality of a Ducati Bike. We can look at Harley-Davidson a bike of nostalgia and comfort type motorcycle which Ducati is all about style, performance, and highly advanced designs (196). Overall Ducati controls a lot of the markets towards advanced and performance in Europe but an up and coming motorcycle line of the V-Rod could be a potential competitor before we know it. Remaining in the similar area of motorcycles with BMW, Harley-Davidson compares well with this competitor. BMW focuses on unique quality, style, and performance which are fairly similar to Harley (196). On the other hand BMW is more of a touring type of motorcycle and includes a lot of sophistication and class in their bikes. With that being said both companies have high resale values but BMW is limited in their market share (196). Harley-Davidson seems to have the ability to have high resale values but still maintain a large market sale around the world. Harley-Davidson has more to offer with their bikes with many different types but also people want to buy their motorcycles because of their brand image and ability to impact the market share. There are four other major competitors who Harley-Davidson has within the motorcycle market including Honda, Kawasaki, Suzuki, and Yamaha (196-197). These four competitors are the biggest competitors Harley-Davidson has around the world but most importantly in the United States which Harley-Davidson wants to control. On top of that most of the companies use a low-cost strategy because of how big and multi product manufacturing their companies are (172). When it comes to the United States, Honda is one of the biggest competitors but also around the world as well. With large sale numbers globally Honda has the luxury to sell their motorcycles as lower costs than most companies including Harley Davidson. Another plus Honda obtains is the large variety of products in different markets which Harley-Davidson is strictly motorcycles and not lawn care equipment, generators, ATVs, etc. just for example (197). Making connections back to the United States market for motorcycles, Honda manufactures large quantities of touring bikes which engines match up well with Harley- Davidsons. Overall Honda compares well over Harley-Davidson towards sales numbers and markets around the world but do not have the ability to create a stronger brand name or even loyalty with costumers. Moving

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onto the company of Kawasaki and being the world leader of transportation equipment and industrial goods industries with diverse product lines in each category (197). The large multi-market company of Kawasaki surmounts over Harley-Davidson in that Harley will never be a diverse in products as Kawasaki but their motorcycles can be comparable. Similar to Harley-Davidson, Kawasaki offers a wide range of motorcycles including touring bike, police bikes, dual-purpose bikes, and others (197). On top of that Kawasaki has a large presence globally but in the main location of Harley-Davidson in the United States. Kawasaki is well-known around the world which puts them ahead of Harley but also because of their high-performance and low-maintenance attributes (197). The last two remaining competitors which Harley-Davidson has are Suzuki and Yamaha. Both of these companies are fairly similar to both Kawasaki and Honda. They each have a large variety of products which the manufacture globally and places them above Harley-Davidson in those regards but the topic of comparableness deals with motorcycles. Suzuki has a very large global presence with sales in over 190 countries worldwide. On top of that Suzukis motorcycle sales are roughly 80 percent in offshore markets which they mainly use joint manufacturing in foreign countries (197). A large advantage Harley-Davidson has on Suzuki is the aspect of the United States market which is a large importance to Harley. Suzuki is not completely comparable to Harley within the U.S. market because of their low presence here. The last competitor is Yamaha which affects the global market but also United States market as well in relation to Harley Davidson. Similar to Harley-Davidson, Yamaha has a wide range of motorcycles but they also manufacture in the heavyweights of motorcycles which is what Harley is known for (197). On the other hand though Yamaha has a competitive advantage of speed and highperformance racing bikes. Harley-Davidson is not a racing specific motorcycle company or known for producing bikes for racing. Besides the types of motorcycle Yamaha also has a large presence in the United States and globally which hampers the sales internationally for Harley. One main advantage which Harley-Davidson has on Yamaha is that Harley is not completely directed towards young and thrillseeking consumers who view riding as a sport (197). Harley-Davidson is about the joy rider and someone enthusiastic about riding. One major factor which Harley-Davidson has on most of these companies of Suzuki, Kawasaki, Honda, and Yamaha is their customer relationship and long standing loyalty. Recommendations to Solving Problems After looking at the problems which Harley-Davidson has been faced with there are a few different recommendations which could potentially help them. The overall growth of the company could expand and be a main focus for Harley. Increasing the production of motorcycles for the demand needs but slowly move away from the waiting list which they currently have for sales. While increasing the production of motorcycles Harley-Davidson has to be cautious of not hampering the quality of the products which could be affected if they produce too fast. One other aspect it that when you increase production they have to watch out for defects or recalls because that would tremendously impact the entire company and the overall image of Harley. Going into the idea of increased production will help with the reliance to the international market for sales. In relation also with production they have facilities globally and in the United States large enough for increased production but the idea to invest into better product lines at already established plants. Along with that Harley-Davidson should possibly open another facility focused on increased production in a logical location. This major recommendation helps with increase sales internationally but also reduces the problem motorcycles not being there for dealers when they need them. Staying on the same topic of increasing production globally Harley-Davidson should focus more on foreign countries and new dealerships. Relying on higher production capacity there should be a strategy to find proper locations for dealerships which in turn would increase sales for the company at an

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international standpoint. From the case study it talks about how the Asian-Pacific market is growing, which is a strong indicator for Harley-Davidson to establish a bigger share of that market. Other places include Australia, New Zealand, Canada, Europe, and South America (196). When it comes to the types of motorcycles which Harley-Davidson currently has there is not a specific motorcycle directed towards a few of the different large markets internationally. A new motorcycle directed to a large number of people would be highly profitable to Harley but it would also develop their brand name to a new market. The company of Buell which they own would be a proper fit to innovate the new motorcycle. Most Harley-Davidson motorcycles are large engines and in some locations there are restrictions on emissions which factors into having a smaller size engine. Having the motorcycle introduced through Buell would not hurt Harley-Davidsons image in a way but would grow Buell as well. The motorcycle would be a new, smaller model similar to the sport-style motorcycle. Having a sport-style would appear to a larger number of people but also a younger basis. On the other hang a smaller engine would result in sales be allowed in India, China, and other locations that have strict emissions regulations (196). There is a large market for smaller, sport-style motorcycles worldwide and Harley-Davidson/Buell could capitalize on it while increasing the potential market share. Case Questions Question 1 Porters Generic Strategies When you look at Porters generic strategies, Harley-Davidson has implemented all of the strategies including The Cost Leadership Strategy, The Differentiation Strategy, and The Focus Strategy while looking at both the narrow and broad markets ("Porter's generic strategies:" 2012). Harley-Davidson maintains the mind set of increasing profits by reducing costs, while charging industry-average prices. Along with The Cost Leadership Strategy Harley-Davidson is increasing market shares through charging lower prices, while still making a reasonable profit on each sale because they have reduced costs. An example of this strategy states, Assembling the bikes in Brazil reduces duties, and taxes, thus reducing the selling price and increasing the companys market (199). Presented is only one way Harley-Davidson is trying to reduce costs and increase profits. When it comes to The Differentiation Strategy, throughout the years Harley-Davidson has preformed good research, development and innovation (201). They have the ability to deliver high-quality products or services and have a very effective sales and marketing departments which allows them to understand the benefits offered by the differentiated offerings. One example from the case shows that Harley-Davidson has a roughly 500,000 square foot product center and have also spent an estimate of $160 million dollars or more each year (201). Focus Strategy deals with niche or narrow markets concentration. Harley-Davidson has understood the unique needs of their customers which has given them the ability to create and build strong brand loyalty but has made certain markets less attractive to some competitors. Harley-Davidson has a very unique relationship with their customers based off of the example, Harley owners are loyal, with 90 percent of buyers reporting the intention of purchasing another Harley bike (200). Within the Focus Strategy there is also Cost Focus and Differentiation Focus which Harley-Davidson uses as a strategy for countries around the world. Porters Generic Strategies can be linked but also workable in the different countries presented in the case. We can first look at The Cost Leadership Strategy and if it is workable in the different countries. This strategy would work in North and South America, Europe, Japan, New Zealand, China, India, Australia, and Russia (194-196). Harley-Davidson has many abilities to reduce costs but they also have the advantage of selling different types of motorcycles which appeal to different financial matters. All of

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these countries have different percentages of consumption through luxury products such as Harley Davidson. The implementation of the Automated Electrified Monorail (AEM) has increased the productivity, improved ergonomics and increased the changeover rate between assemblies and allowing more factory space (199-200). AEM gives Harley-Davidson an ability to increase profits by reducing costs but selling their products into these countries at industry-average prices. The international market alone was a revenue producer for Harley-Davidson. Moving onto the Differentiation Strategy within the area of the countries presented in the case. North and South America, Europe, Australia, Japan, New Zealand and Russia are the main countries where the generic strategy of Differentiation can be used (194-196). Harley-Davidson has implemented thorough research of development and innovation to allow adjustment to each one of these countries. These countries have large population who thrive off of luxury products and as a high-quality product Harley-Davidson has the chance to deliver into these areas. Along with these countries there are also other countries which Harley could look into but some issues transform. China and India are two countries where emissions but also engine size is a factor but also motorcycles being banned in Beijing, China and import tariffs in India (196). Along with the issues Harley-Davidson has the ability to use effective sales and marketing in all of the countries throughout the case. On top of that, he need for small engines in specific countries would be a highly ethical choice for Harley-Davidson to invest in to create large international market but also increase profits and sales. The Focus Strategy is the last strategy of Porters Generic Strategies but also has a few strategies within the one main concept. Cost Focus and Differentiation Focus are areas to be looked at towards whether Harley-Davidson can make them work in the countries presented in the case. Harley-Davidson has strategies which concentrate on particular narrow markets because they understand the dynamics of each market but also the unique needs of customers (198). Yet, again the products of Harley-Davidson are luxury and each one of the countries has a desire for luxury products. Each one of the countries has a certain want and Harley-Davidson has understood each one of the markets in each country. Different categories of bikes in different areas of the world is what customers want and with the diverse number of bikes Harley-Davidson has allows them to satisfy the needs of consumers in all focus targets. With the ability to serve many different markets and areas that are willing to spend dissimilar amounts in certain areas gives a strong brand loyalty and reaching out to each market segment. Harley-Davidson has a strong image around the world but they also have to find their way into the narrow markets in these international markets. On the other hand Harley also has a broad competitive scope because they focus mainly on the certain age group of 34-54 because two-thirds of their owners are in that broad focus group (197). Selling in both the narrow and broad scopes allows Harley-Davidson to reach out to many diverse groups to sell their motorcycles.

Question 2 Porters Five Forces A Porters Five Forces analysis reveals different aspects about the strategies Harley-Davidson has employed in recent years. Porters Five Forces is both a simple but prevailing concept for understanding where the power lies in business conditions. A useful way for allowing Harley-Davidson to understand both the strength of their current position and the strength of the position which they want to move towards globally. Understanding Porters Five Forces gives Harley-Davidson proper information to facilitate them to originate suitable strategies to be successful in their market. Harley-Davidson has to

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learn the dynamics of each industry and every market to be able to conduct business effectively. With a clear understanding of where the power is established, Harley can use it to an advantage of a situation of strength, improve a condition of weakness, and prevent fewer mistakes by taking a wrong path. On top of that it allows Harley-Davidson to understand how new products and services can increase profits potentially ("Porters five forces:" 2012). The first of Porters Five Forces is competitive rivalry, which reveals a few different things towards Harley-Davidsons strategies. It is an obvious factor that there is a lot of competition globally for Harley-Davidson and in different areas of motorcycles. Harleys strategy has become involved in a lot of different markets around the world but they have not made further changes to completely focus on the specific places like their competitors. Because of not implementing a certain strategy towards a certain areas allows their competition to be higher than them on different aspects. From the case we can see that Harley-Davidson struggled in the United States while other competitors seemed to remain the same in the American market (193). The major factor which is revealed is that their competitors focus more on certain aspects or markets where Harley-Davidson should focus on the markets which are less intense of that of their competitors. On the force of new entrants threats, Harley-Davidsons strategies are strong and no true threat is presented. The strategy which Harley has is working out perfectly fine and it lowers the chance for new entrants to come into the motorcycle industry. A major positive in their strategy is how strong their customers are towards brand loyalty but also the overall brand image of Harley-Davidson (200). One part in the case it stated that most current Harley-Davidson owners would purchase another motorcycle from Harley. With the threat of new entrants it mainly reveals a positive towards the current strategy of HarleyDavidson. Threats of substitutes reveal different aspects about Harley-Davidsons strategies as of current years. With a large market and with many different companies who sell diverse styles of motorcycles compared to Harley. Customers could look to leave Harley-Davidson and purchase other bikes. Harley has to provide more styles of motorcycles to attract a larger number of riders and not just the age group of 35-54 like presented in the case (197). A wider range of motorcycles and styles brings more groups to purchase Harleys and their products. Implementing and designing the new V-Rod or VRSC is a stepping stone to expanding the types of riders because it is a little more of a sporty styles motorcycle and there is a big market for that specific style (201). Harley-Davidson has to take more steps to creating different motorcycles directed towards younger, girl, and multi-purpose riders. Fellow competitors have done this and they control more market shares in different global markets compared to Harley-Davidson. When it comes to the power of suppliers Harley-Davidson has a great strategy going on and it reveals many positive things. Harley allows their suppliers to become heavily involved in product design, development, and manufacturing ideas (199). The suppliers are always trying to improve the motorcycles themselves but it is also a way to save money and cut costs for both parties. Becoming more efficient and increasing manufacturing rates allows there to be a strong bond with Harley-Davidsons suppliers. With the strong relationship and communication they each make more money and both remain happy. One last aspect which it reveals about Harleys current strategy is that with a strong relationship with the suppliers it prevents the issue of shortage on raw materials or other needs of relying on the suppliers (199). The last of Porters Five Forces is power of buyers. With the number of dealerships worldwide and in the United States it reveals good things about the strategies of current times for Harley-Davidson. Having a high number of buyers allows Harley to not be affected significantly if one dealership/buyer is shut down. The current strategy is set with that is it difficult for dealerships to force down prices, bargain

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for higher quality or more services, or place competitors against one another ("Porters five forces:" 2012). One negative aspect though is if there was one dealership located in a crucial place and it gets shut down. They would be losing out on good profits in that region but the company may or may not suffer from the lose. Also, Harley-Davidson has to open more dealerships in vital locations around the world that are profitable but also to compete more with their competition. Question 3 Competitors Comparison When it comes to Harley-Davidson and how it compares to its competitors there are many different aspects to be looked at among each individual competitor. Harley has six major competitors of Honda, Suzuki, Kawasaki, Yamaha, BMW, and Ducati (196-197). One major comparison which HarleyDavidson has over their competition is the strong brand name and loyalty with all customers for over 100 years in the motorcycle industry (193). From that we can look at each competitor from how Harley compares. First we can look at both Ducati and BMW in the same manner towards Harley-Davidson. Ducati is a large Italian company who dominates the sporty, high-performance, and racing motorcycle in the European market and around the world for the most part (196). Harley does not have a real sporty bike directed to the younger age group and the racing types. The closest model is the V-Rod which Harley is in the process of improving and growing the implementation of this motorcycle around the world to compete better with Ducati and sports bikes (196). When it comes to BMW they are into the touring, highperformance, sophisticated bikes. Similar to Harley they focus on unique quality, style, and performance. They both have high resale values but Harleys customers seem to keep going back to purchase motorcycles (196). One other aspect it BMW does not have a large market share compared to HarleyDavidson and therefore give Harley the upper hand over BMW. The next four competitors of Honda, Kawasaki, Yamaha, and Suzuki can all be placed in the same category generally. Each one of these companies has a wide range of performance products away from just motorcycles compared to Harley-Davidson (196-197). We know that Harley focuses on heavyweight bikes and that is about it. These companies on the other hand have many focuses on all sorts of products and are much large companies than Harley. From that being said we are focusing on the comparison of motorcycles and not other products the competitors sell. When it comes to Honda they are located globally and have a major impact on all markets especially in the United States which is a crucial location for Harley-Davidson. There are a lot of different models Honda manufactures and have similar engines like Harleys (196). On the other hand Harleys dominates on the brand image and customer loyalty. Kawasaki is familiarly similar to Honda on offering many different models but is not involved in as many markets as Honda. Kawasaki does have an impacting share in the U.S. but not greater than Honda or Harley-Davidson (197). With the last two companies of Suzuki and Yamaha they two are similar together. Suzuki has a large global presence with sales in over 190 countries worldwide. One positive in regards to Harley-Davidson is that Suzuki does not have a large presence in the U.S (197). The last competitor of Yamaha is a tough competitor of Harley. Yamaha like the rest of companies has a wide range of models but also focus on heavyweight motorcycles like Harley. On the other hand though they have a big focus on speed and high-performance racing bike unlike Harley-Davidson. When it comes to the presence in the U.S., Yamaha have a large market share and that affects Harley and their motorcycle sales (197). Most of Yamaha is based towards younger and thrill-seeking consumers who view riding as a sport, where on the other hand Harley-Davidson does not base their focus on that of Yamaha. Harley is about the joy rider and people enthusiastic about riding. From all of the competitors no company compares greater then Harley when it comes to their brand image and customer relationship with loyalty toward their motorcycles (195).

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Cullen, J. B., & Parboteeah, K. P. (2011). Multinational management: A strategic approach. (5th ed., pp. 170-203). Mason, OH: South-Western Cengage Learning.

Porters five forces: assessing the balance of power in a business situation. (2012). Retrieved from http://www.mindtools.com/pages/article/newTMC_08.htm

Porter's generic strategies: choosing your route to competitive advantage. (2012). Retrieved from http://www.mindtools.com/pages/article/newSTR_82.htm