CASE STUDY: HARLEY DAVIDSON COMPANY I. Main Problem The excessive heat of the motorcycles engine. II.

Secondary Problem Malfunctioning of the rear break lights switch More or less 100,000 motorcycles are released that are proven to have malfunctioned. Increased rate of motorcycle accidents Objectives To prevent excessive heat that causes the switch to malfunction To lessen or prevent further motorcycle accidents SWOT Analysis Strengths: 1. Harley-Davidson is well-known for producing motorbikes. 2. It is the only American brand manufacturer who has produced heavy weight motorcycles. 3. It has the customer loyalty of Americans and others who want to purchase motorcycles. Weaknesses: 1. Its products often malfunction. 2. Many people fear using motorcycles because they find it unsafe. Opportunities: 1. More people are showing inclination towards riding motorcycles. 2. It may introduce motorcycles to other countries which has untapped motorcycle markets. Threats: 1. Its motorcycle competitors are introducing more products. 2. Other forms of vehicles. 3. Other markets that are making automobiles may also resort in manufacturing motorcycles. 4. Increased environmental regulations. Alternative Course of Action ACA 1: Produce other forms of vehicles Pros: 1. More safe, comfortable, and convenient compared to motorcycles 2. More room for passengers

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3. Cons: 1. 2. 3. 4.

May generate more income It would be more costly/expensive Might not be popular to consumers because they are known for producing motorcycles Lack of resources and knowledge about manufacturing other vehicles (ex: cars) More competitors ACA 2: Improve motorcycles engine by using materials that are heat resistant for rear break light switch, etc.

Pros: 1. 2. Cons: 1. 2. 3. VI.

More safe Avoid engine malfunction It would be costly. It may be time-consuming to find suppliers for these materials. The process may slow down the sales of the company.

Decision Criteria *5 highest; 1 lowest Cost Efficiency Profit Maximization Innovation Functionality Customer Turnover Time-Consuming ACA 1 3 3 5 3 3 5 22 ACA 2 5 4 4 4 3 4 24

VII.

Recommendation and Implementation It is better for the Harley Davidson Company to improve their motorcycles engine by using materials that are heat resistant for the rear break light switch, etc. Since the engines excessive heat is the main reason of the motorcycles problem, this would be more logical and practical for the company to invest into. And besides it would be less costly than introducing a new line of products to the market. It is better for the company to take advantage of its strengths (motorcycles) than take the risk of producing something that it doesnt have enough knowledge of. The process is to be done and accomplished within 6 to 12 months time. The improvement might bring the company into a low profile state, but it would not stop marketing and selling their previously made products that doesnt have the possibility to malfunction. Recommendation / Implementation Steps:

1. Find suppliers for materials to be used (1-2 months) 2. Forecast finances and allot budget for the improvement/development of motorcycles (2nd month) 3. Pick a supplier and settle terms and agreement (3rd month) 4. Release a notification to customers that motorcycles would be recalled. (3rd month) 5. Recall the motorcycles that are proven to have malfunctioned (3 months) 6. Start improving its engine by replacing old materials with heat resistant ones. ( 4 months) 7. Once done, make sure to double check the motorcycles and test the them before distributing. (11th month) 8. Do an actual launch of the new and improved motorcycles to attract potential customers. (12th month) VIII. Conclusion The Harley Davidson Company must improve its engine by using heat resistant materials for its rear break light switch, and other parts of the motorcycles that are prone to damage due to heat, so that future malfunctioning of their products will be prevented. The improvement of the engine will also improve the companys standing or ranking in the motorcycle manufacturing industry. A lot of people may have thought of resorting to other brands after knowing about the different problems that Harley Davidson motorcycle owners have encountered, but this shift in the materials used would actually make them trust the company again. This has quite a handful of advantages such as the motorcycles engine would be in good condition and would less be prone to breakage or damage. The brand would strengthen and customer loyalty may also increase. The process would take some time maybe 6 to 12 months, and during that period competitors would take that opportunity to increase their sales, etc, but the period would also give the company more time for innovation and improvement of products, that would keep customers waiting and wanting the brand and its products more.