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Harley Davidson Case Presentation

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by

Stacey Klinker

on 24 October 2012

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Transcript of Harley Davidson Case Presentation

Harley Davidson Inc., July 2009 Harley- Davidson's History Identify Harley- Davidson's strategy and explain its rationale. Resources and Capabilities Harley Davidson vs Honda Harley Davidson vs Honda Harley Davidson vs Honda Honda:
Capability: engines (Technology)
Multiple Lines (auto, motorcycle, mowers)
Mass production: 10,000,000 motorcycles Harley Davidson:
Capability: Manufacturing efficiency
JIT, TQM, CAD/CAM
Highly customized products
Buying power struggle
Premium pricing Founded in 1903
Only company left in 1953
60s & 70s time
of change Harley Davidson's History Tough times in 1981
90s saw a return to profitability
'96- Plan 2003 Marketing and positioning their products to the right market segment
Develop technology to increase automation
Aim to increase their market share internationally What should Harley‐Davidson do to sustain and enhance its competitive position? multi-generational and multi-cultural marketing strategy to include
Young Adults
Women
Diverse Customers
measured by internally monitoring market shares within targeted customer segments Marketing and positioning their products to the right market segment Harley-Davidson.com Must be paired with adjustment in Harley-Davidson’s Financial department Harley-Davidson.com Census.gov Cheaper labor
Customization more efficient

Should Harley-Davidson lower their customization level? Develop technology to increase automation Harley-Davidson.com Expand the current global presence and reach new international markets
Must be very selective
Bike
emotion
experience
Market tests Aim to increase their market share internationally Harley-Davidson.com Thank you! Customer relationship
Harley experience
Harley Owners Group (HOG)
Additional services Threats to Harley Davidson’s Continued Success Harley owners are aging – Baby Boomers

As one blogger wrote, "The 60-70-year old riders have trouble lifting a leg over the seat because of arthritis. And finger joints hurt with the cold air and engine vibration." Threats to Success Advantages of Competitors Threats to Success Production capacity and changing demand Threats to Success Economic Recession
Customers staying away due to less buying power
Cut jobs and closed production facilities
Customer financing experiencing increased defaults on loan
Expanding internationally is risky
European Union’s motorcycle noise standards
Pollution and some emission standards are not up to level of some countries Threats to Success Have They Enhanced Their Competitive Position? 41 to 1 building consolidation in York
Flexible production capacity
Employees have more macro-type workloads
Automation: Teaching an old hog new tricks…. WSJ: Lean Hogs Goldman Sachs gives Harley the nod – Oct. 18
Direct Correlation: Construction Jobs and Harleys Sold
Challenges Remain:
Aging Customer Base
Determined Competitors From “Neutral” to “Buy”
Full transcript