Usman ali khan

Mba -4z
01-220092-043
 In the Beginning…
•It all started in in 1903 when William, Walter, and Arthur Davidson,
along with William S. Harley, created the first Harley-Davidson in their
family shed.

• In 1907, the Harley-Davidson Motor Company was Incorporated.

•Both WWI & WWII spurred growth for the company due to
the militaries demand for HD’s economical motorcycles.
• After WWII, the improved American economy, and higher
demands for Harley-Davidson bikes encouraged the company to
expand its efforts and purchase additional manufacturing capacity.

• In 1969, after over sixty years of success and growth, Harley-Davidson

merged with the American Machine and Foundry Company (AMF).
 Still Growing…
• As the 1970’s roll around,
the company responds to
the “Customizing Craze” by
introducing new models.
• In 1984, Harley-Davidson
goes public, and by 1987,
is listed on the NYSE.
• By the end of the 1990’s,
Harley-Davidson buys up
Buell Motorcycle
Company, and expands its •Currently, Harley-Davidson
business.
continues to experience growth in
all areas of sales and production.
The Business
• “Harley-Davidson, Inc. is an • Manufacturer of
action-oriented, international motorcycles and motorcycle
company, a leader in its parts and accessories.
commitment to continuously • 8,900 Employees
improve our mutually
beneficial relationships with
stakeholders. Harley-
Davidson believes the key to
success is to balance
stakeholders’ interests
through the empowerment of
all employees to focus on
value-added activities.”
-
• Harley-Davidson
“Vision”
 MISSION STATEMENTS

• “We fulfil dreams through the experiences of

motorcycling, by providing to motorcyclists
and to the general public an expanding line of
motorcycles, branded products and services in
selected market segments”
 MISSION ANALYSIS:
COMPONENTS YES / NO

CUSTOMERS YES

PRODUCTS & SERVICES YES

MARKETS YES

CONCERN FOR SURVIVAL YES

TECHNOLOGY NO

SELF CONCEPT YES

CONCERN FOR PUBLIC IMAGE YES

CONCERN FOR EMPLOYEES NO

EXTERNAL ANALYSIS

• Average purchaser of a U.S

Harley-Davidson motorcycle is a
married male in his mid-forties
• Average purchasers of a U.S
Harley-Davidson have a
household income of $78,600.
• 30% of the Harley-Davidson
buyers have college degrees.
• Only about 9% of Harley-
Davidson U.S retail motorcycles
are to women.
• HD business is strong as about
42% of motorcycle purchasers
have owned by them.
• EXTERNAL ANALYSIS
• U.S Government and People are considering Harley-
Davidson as an American icon.
• Harley-Davidson is one of the main manufacturer and
user of V-ENGINE configuration.
• Harley-Davidson’s have a wide variety of products
according to Standard, Performance, Touring & custom
• Harley-Davidson is facing some legal problems in Asian
countries, in India there is 60% tariff and various other
taxes will cause the price of the bike to double.
• Noise pollution and some emission standards of Harle
Davidson bike is not up to the level of some countries
across the globe.
 STRATEGY
• MARKET PENETRATION
1. Get some more market share from the existing market, like U.S,
U.K, and Japan through more marketing techniques like
advertising. Harley-Davidson has a good brand name so it’s easy
for them to eat up the competitor market share if they can
provide some more customer benefit.
2. Competition is high in this segment mostly in U.S so market
penetration can be a good choice for the company.
3. Expand the HOG (Harley Owners Group) to Asian countries, if the
company can provide the customer satisfaction that they are
providing to the U.S customers to the Asian customers they can
increase the sales.
PRODUCT DEVELOPMENT:
• Younger generation and female are now
coming to this segment so expand the motor
cycle segments to younger generation and
females.
• In Europe they can increase or expand the
Buell’s market share by introducing new
motorcycles.
MARKET DEVELOPMENT
•
Harley-Davidson can bring in their vehicle to Asian countries
like India and China, because these countries have a high
population and the market potential is also high.
• The cost to bring in the old vehicles (old product) to India is
so much difficult because there are so much environmental
laws are there which won’t allow that type of vehicles to
come to India, and its difficult that taxes and levis are high in
India so starting new plant in India can solve this problem.
Negotiations with the Government can solve these
problems
 PEST ANALYSIS
Political

Low taxation from U.S government could encourage Japanese & European
competition within the US.
Economic
Global recession is effecting economies world wide therefore HD has to
sustain its position in the market.
Social
More diverse lifestyles, Creating many Harley Clubs and academies
around the globe like Rider’s Edge.
Technological
New materials and other technologies are giving potential for innovative /
customized motorbikes.
Porter’s 5 New Entrant
•• High
High Entry
Entry Barrier
Barrier
Forces ·High
·High tech
tech Involvement
Involvement
·Small
·Small scale
scale Producers
Producers minimum
minimum
threat
threat

Internal Rivalry
Power of Buyer ••Honda,
Honda, Yamaha,
Yamaha, Suzuki
Suzuki (( All
All Japanese)
Japanese) POWER OF SUPPLIER
•Low power of customer as they are ·Honda
·Honda mainly
mainly competing
competing in
in U.S
U.S ••Out source Steel,
Steel, Basic
Basic Electronics
Electronics
individual
individual
·Strategic
·Strategic Alliance between Suzuki and ·Assembly
·Less ·Assembly within
within the
the Company
Company
·Less no.
no. of
of Dealers
Dealers also
also rely
rely on
on Kawasaki
Kawasaki
individual customers ·Ease
·Ease of
of switching
switching suppliers
suppliers

Substitute Product
••Very
Very few
few substitute
substitute as
as luxury
luxury bike.
bike.
·Cars,
·Cars, scooter
scooter and
and sports
sports car.
car.
·NO subs when looking for luxury
luxury
bike.
 RECOMMENDATION
• Expand European and Asian market.
• Increase the sales of Buell sport bike and Harley-
Davidson to younger customers and females.
• Horizontal diversification: acquires or develops
new products that could appeal to its current
customer groups even though those new
products may be technologically unrelated to
the existing product lines.
• Concentric diversification: Bring in new
recreational vehicles
THANK YOU