HARLEY DAVIDSON

Submitted by-
Abhishek Pathak
Faraz Khan
Pratibha Yadav
Rahul Pandey
Sandeep Yadav
ShubhamSharma
 Harley-Davidson Motor Company
•Type Public - 1984 , NYSE - 1987
•
•Founded 1903
•
•Founder William S .
Harley
Arthur Davidson
Walter Davidson
William A . Davidson
•Headquarters Milwaukee , Wisconsin , USA
•Key People Keith E Wandel ( CEO )
•Revenue 5 . 59 Billion USD
( 2009 )
•Employees 9 , 700 ( 2006 )
•Subsidiary Buell , M . V . Augsta
•Website www . harley - davidson . com
1958
The first rear brakes and hydraulic rear suspensions appear on the Duo-Glide.

 1981
On February 26, thirteen Harley-Davidson senior executives sign a letter of
intent to purchase Harley-Davidson Motor Company from AMF. By mid-June, the
buyback is official, and the phrase "The Eagle Soars Alone" becomes a rallying
cry.

1988
The Harley-Davidson Traveling Museum hits the road, displaying memorabilia,
classic Harley-Davidson motorcycles and the rich history of the Harley-
Davidson rider

1991
Installation of a $31 million state of the art paint facility begins at the
York, PA, factory. It becomes fully operational in 1992.
The Dyna line of motorcycles debuts with the 1991 FXDB Dyna Glide Sturgis®.
•In 2000,Buell introduces the Blast®, a single-cylinder motorcycle, for
the 2000 model year. The Blast receives excellent reviews. It's
introduced in tandem with the Rider's Edge® Academy of Motorcycling, a
beginner's rider course available through Harley-Davidson and Buell
dealerships.
•The VRSCA V-Rod® is introduced for the 2002 model year. Inspired by the
VR-1000 racing motorcycle, the V-Rod is Harley-Davidson's first
motorcycle to combine fuel injection, overhead cams and liquid cooling,
and delivers 115 horsepower.
•In 2003, more than 250,000 people come to Milwaukee for the final stop
of the Open Road Tour and the Harley-Davidson 100th Anniversary
Celebration and Party.
•
•In 2004,Harley-Davidson,s touring and custom motorcycles were grouped
into five families: Sportster, Dyna Glide, Softail, Touring, and the VRSC
V-Rod.

•Harley-Davidson unveils plans for an all-new museum in Milwaukee,

scheduled for opening in 2008.   Harley-Davidson appoints Beijing Feng
Huo Lun (FHL) as the first authorized Harley-Davidson dealer on mainland
China.
 HARLEY-DAVIDSON’S PRODUCT LINE
•
•Harley-Davidson’s touring and custom
motorbikes were grouped into five families:
•CUSTOM BIKES:-
.
ØSPORTSTER
Ø DYNA GLIDE
ØVRSC V-Rod
•TOURING BIKES:-
ØSOFTAIL
ØTOURING
•
•Sportsters, Dyna glide and VRSC models were
manufactured in the company’s Kansas city,
Missouri plant. While Softail and Touring
models were manufactured in York,
PENNSYLVANIA.
•
 •
•These bikes come in different variations:-

•Sportsters and Dyna Glides- 4 model variations

••Softails
. -6 variations
Touring bikes-7 basic configurations
•VRSC V-Rod-2 basic styles.

•In 2004,Harley-Davidson ‘s retail prices of these bikes were-

üSPORTSTERS carried retail prices ranging from $6,495 to $8,675

üDYNA GLIDE model sold at price points between $11,995 to $16,580

üVRSC V-Rods sold for $16,895 to $17,580
üThe ROAD KING AND ELECTRA GLIDE Touring models sold at price
$16,995 to $20,405.
DIFFERENTIATION STRATEGY
A firm differentiates itself from its
competitors “ when it provides something unique
that is valuable to buyers beyond simply offering a low
price.”
Because differentiation is about uniqueness,
establishing differentiation advantage requires
creativity – it cannot be achieved simply through
applying standardized frameworks and techniques.
Some examples are- McDonald’s, BMW, SONY, AMERICAN
EXPRESS, HARLEY-DAVIDSON etc.

•Differentiation is about understanding customers

and how our product can meet their needs.
DIFFERENTIATION STRATEGY continue…..

•Harley-Davidson’s ability to develop its image of ruggedness,

independence, and individuality is supported by a top management team
that dons biking leathers and ride its “hogs” to owners’ group rallies,
and a management system that empowers shop-floor workers and fosters
quality, initiative, and responsibility.

•Davidson has been particularly effective at achieving differentiation

advantage through careful examination of the activities that customers
undertake in selecting, purchasing, using, and maintaining their
motorcycles.
•
•Harley creates value for its customers through providing test ride
facilities at its dealerships, financing, driving
instruction, insurance, service and repair facilities, owners’ club
activities, and various sponsored events for Harley riders.
•
Ø
 The Drivers of Uniqueness

§HOG (Harley Owners Group)

membership
§Chapter Activities
§Accessories
§Exclusive Events - Club HOG
and State Rallies
§
.
HARLEY’S STRATEGY AND IMAGE
Harley-Davidson’s turnaround strategy
including improving product quality by
adopting Japanese management practices,
abandoning a reliance on advertising in favor
of promotions at motorcycles rallies, and
improving its dealers network to broaden its
appeal to new customers.
After hearing complaints about dealers from
Harley riders at rallies and other bike events,
Harley -Davidson conducted a PILOT
PROGRAM with two dealers in MILWAUKEE
that called the dealers to build clean,
•
•HOG membership was that new motorcyclists could experience freedom of
the open road, much like a Hells Angel. This riding club is different
from joining a country club or other upper-income families' club.
•Baby boomers purchased Harleys because of a desire to feel “forever
young”
•In fact, many Harleys competitor have claimed that Harley sells
lifestyles, not motorcycles.

•On Harley-Davidson’s 2003 Memorial Day centennial celebration in

Milwaukee, thousand of leather –clad bikers attended, most of them are
professional people…people want to create image.
•
•Most weekend bikers were quite different from the image they
emulated. Hells angles continued to be linked to organized crime into
2003 like drug trafficking, murdering, theft of motorcycles and
firearms. Harley-Davidson balanced its need to promote freedom and
rebellion, while distancing the company from criminal behavior
•
•
•

•
•
 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 .
 Continued…
Legal
Different taxation method in different countries especially
southeast Asia where HD is facing legal issues due to
excessive excise duty .
International
Volatile international market situation is restricting HD to
capture new markets .
Environmental
Noise and some emissions standards of HD bike is not up to
the level of some countries across the globe .
Demographic
Average purchaser of HD is mid forties married man with
household incomes averaging $78600 while only 9 % of
consumers are women .

01/15/10 ® Tony Gauvin, UMFK, 2005 14

 Internal Analysis
Value Chain

Firm Infrastructure
Good Senior Management Has Transformed The Firm But It Remains
Small Compared To Global Competitors.
HRM
Excellent But No Skills or Abilities Outside US.
Procurement
Very Good Relationship With Streamlined Supplier Base , and New
Brazil Operations Can Reduce Cost Further.

Inbound Logistics Operations Outbound Marketing & Sales Services

Logistics

Good Advance Excellent Highest Very Good Excellent Excellent In US

JIT Procedure Level Operations Because of Good Relations & Brand But Weak Outside
Shipment Strength
Porter’s
5
Forces

Internal Rivalry
•Honda , Yamaha , Suzuki ( All Japanese )
•Honda mainly competing in U . S
•Strategic Alliance between Suzuki and Kawasaki
 Harley-Davidson University
•Set up in Milwaukee
•To train Dealers and Mechanics
•17,000 were trained in 2002
•It has 665Iinstructor led and 115 online
classes
•96 percent company dealer participate
 Distribution and Sales Program
•In 2003, 644 independently owned dealer

•857 dealers in 2009 in U.S.

•436 Buell dealers in U.S. in 2003
•76 Independent dealers and 1 Buell dealer in
Canada in 2003
•In Japan 161 Independent dealers in 2003
 Distribution and sales continue….
•50 dealers and 3 distributer in Australia
and New Zealand in 2003
•73 dealers in Asia/Pacific sell Harley and
Buell in 2003
•32 dealers in 17 Latin American Country in
2003
•436 and 313 are Harley and Buell dealers
in Europe in 2003
PROBLEMS OF HARLEY-DAVIDSON ARE:-
•
•Harley has faced difficulties in luring buyers in the
performance segment of the industry.
•Heavy Price
•Not liked by Echo Boomer
•Challenges faces by Buell
•In the early 1980s, Japanese competitors' heavyweight
motorcycles created a real threat for the Harley-
Davidson organization.
•
•Harley-Davidson had co-developed, reanalysis the
customer needs and later purchased Buell to compete
with performance category against models offered by
HONDA,YAMAHA,KAWASAKI,SUZUKI and lesser known
European brands such as MOTO GUZZI,DUCCATI and
Triumph.
 Problem Continues……
•Long term Production Process
•Over availability of models
•Fuel Venting problem in Dyna series
•Problem with V-twins
•Poor Quality Control
THE END