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Harley Davidson
5
Case Study
Future
Environment
Brand
Description
Kawkad Knöchelmann Marenco
Vision Statement
Mission Statement
2018
Objectives
1920
1943
1912
1903
2000 Dealers
67 Countries
Foundation
2019
2003
2008
CEO:
2009: Keith Wandell
2015: Levatich
- 228,051 bikes
- 6,500 employees
- 4 Production facility
1. Lead in every market
2. Grow the sport of motorcycling in the United States
3. Grow sales at a faster rate
4. Grow earnings faster than revenues
Vision Statement
2018
Objectives
1920
1943
1912
1903
2000 Dealers
67 Countries
Foundation
2019
2003
2008
CEO:
2009: Keith Wandell
2015: Levatich
- 228,051 bikes
- 6,500 employees
- 4 Production facility
1. Lead in every market
2. Grow the sport of motorcycling in the United States
3. Grow sales at a faster rate
4. Grow earnings faster than revenues
CASE STUDY ANALYSIS
BEFORE FINANCIAL CRISIS
AFTER FINANCIAL CRISIS
Past Strategies
- Profit growth: was depended on the ability to keep expanding the sales of the high-priced, heavyweight motorcycles.
- No other company was able to replicate the emotional attachment to the “Harley Experience”.
- Core market: Baby-boomer generation.
- Challenge in 1990s: satisfying the increasing demand for its products.
- 1996: announced plan 2003 to increase production capacity.
- Financial crisis 2008: decreasing willingness of the customers to pay.
2010-2014
2015
- The Brand: it was the core of the company's strategy.
- Customers and customer Relations: sales grew faster among non-core customers.
2015
- The products: Harley decided to commit to the traditional design, but that limited it's ability to invest in technology and new products.
- Other products and services: Sales of parts, general merchandise and accessories represent about a third of the total sales.
External Environment
SWOT ANALYSIS
W
S
- HIGHER PRICE FOR EXPORTING COUNTRIES
- DEPEND ON 3 FACILITIES TO FULFILL GLOBAL DEMAND
- DEPENDENCE ON U.S-MARKET
- LIMITED SUPPLIERS
- CULT BRAND
- HIGH COSTUMER PULL
- PRODUCT RANGE
- LOYAL CUSTOMER BASE
- MYOPIC APPROACH
- THREAT OF SUBSTITUTION
- ASIAN AND EUROPEAN MARKETS
- LOWER CC BIKES
- WOMEN AND YOUNGER RIDERS
T
O
Porter's 5 Forces
1. Competitive Rivalry or Competition (strong Force)
- High number of Firms (strong force)
- High availability of substitutes (strong force)
2. Bargaining Power of Customers/Buyers (strong force)
- High substitute availability (strong force)
- High quality of information (strong force)
- Moderate switching costs (moderate force)
3. Bargaining Power of Suppliers (weak force)
- Low forward integration (weak force)
- High supply stability (weak force)
- Moderate size of suppliers (moderate force)
4. Threat of substitute or substitution (moderate force)
- Moderate switching costs (moderate force)
- moderate substitute variety (moderate force)
- high substitute availability (strong force)
5. Threat of new entry (moderate force)
- moderate economies of scale (moderate force)
- moderate switching costs (moderate force)
- high cost of brand development (weak force)
COMPETITION
Despite Harley-Davidson’s insistence that it was supplying a unique Harley experience rather than competing with other motorcycle manufacturers, the more it took market share from other manufacturers and expanded its product range and geographical scope, the more it came into direct competition with other motorcycle manufacturers.
HOW DOES THE FUTURE LOOK?
Male
35-44 y.o
$78,000 per year
Possibly a former U.S military personnel
ASIA PACIFIC REGION
Presence of domestic brands is bigger.
Weak motorcycle demand environment in the U.S.
Higher tariffs.
U.S. division accounted for 61% of its total sales volume.
Growing motorcycle market in the Asia Pacific Region.
New plants in Asia would support the company's competitiveness, leaving the worry of exportation costs behind.
PRODUCT EXTENSION (INNOVATION)
e-Motorcycles
Should we innovate?
- Broader audience
- More potential costumers
Smaller Motorcycles
SOURCES
https://www.harley-davidson.com/us/en/about-us/hd-news/2018/harley-davidson-accelerates-strategy-to-build-next-generation-of-riders-globally.html (Hd changes strategy)
https://www.marketing91.com/swot-analysis-of-harley-davidson/ (SWOT ANALYSIS) https://docs.google.com/document/d/1z43fspINVXU5_BF_Mr5IVAA1vADszySQZ2XJsvKt-vY/edit (PORTER´S FIVE FORCES)
https://www.marketing91.com/harley-davidson-competitors/ (COMPETITORS)
/Harley-Davidsons-new-strategy-Smaller-bikes-more-foreign-sales/4491532961173/
https://investor.harley-davidson.com/our-company/our-strategy
https://hbswk.hbs.edu/item/what-should-harley-davidson-s-management-do?cid=wk-rss
https://www.upi.com/Top_News/US/2018/07/30
https://www.merriam-webster.com/dictionary/baby%20boomer (BABY BOOMER)
(https://dictionary.cambridge.org/de/worterbuch/englisch/baby-boomer) (BABY BOOMER)
https://www.forbes.com/sites/greatspeculations/2018/06/08/how-is-harley-davidson-likely-to-grow-in-the-next-2-years/?fbclid=IwAR0dMZGnDQr7zaSpKqZ_R-5HnQd0vB_l-R_nMFGLDeqDWWK12WatuVhQS-I#5769dbbf306c (How is Harley-Davidson Likely To Grow In The Next 2 Years?)
https://www.gurufocus.com/news/728054/harleydavidson-is-a-value-trap?fbclid=IwAR0dMZGnDQr7zaSpKqZ_R-5HnQd0vB_l-R_nMFGLDeqDWWK12WatuVhQS-I (Value Trap)
https://www.youtube.com/watch?v=pL8xYrFKWbM (Video)
https://www.economicshelp.org/blog/140934/business/product-life-cycle/ (Product Life Cycle)
https://harleydavidsoncom322.weebly.com/target-audience.html