This website uses cookies to ensure you have the best experience. Learn more

Harley Davidson Case Analysis

2088 words - 8 pages

Harley Davidson Case Analysis

In 2007, Harley Davidson was the world’s most profitable motorcycle company. They had just released great earnings and committed to achieve earnings per share growth of 11-17% for each of the next three years. Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task seeing Harley’s domestic market share recently top off at just under 50%. The domestic market was where Harley’s achieved the most growth over the past 20 years and with it leveling off, where was Harley going to get the 11-17% was the million dollar question.
Harley Davidson has built a brand that is more than just the spread eagle on a load rumbling motorcycle, but for those who purchase a Harley they are purchasing a lifestyle, an experience, or piece of American culture if you will. Due to this differentiating factor Harley has been able to charge a premium for its products and still be successful against its lower priced competition. Harley built upon this lifestyle when it created the Harley Owners’ Group (HOG). Harley would promote shows, rallies and rides through HOG in the US and even in other countries. This helped to build its coveted image into more of an exclusive club.
In the 1990’s, Harley Davidson saw tremendous growth and looked for resolutions to its one problem of balancing production with its soaring demand. In 1996, Harley announced “Plan 2003”. “Plan 2003” was a huge undertaking to increase its production capacity, introduce several new models and increase international expansion. At the end of this planned expansionary period, Harley’s sales had grown tenfold over just 23 years. However in 2007, domestic demand was starting to slip, as several economical factors weighed on the American consumer, making it more difficult to buy luxury products.
In 2007, Harley Davidson finds itself in a battle with heavyweight contenders with deep pockets and a lot of engineering resources. Harley lacks the diversification in its products when compared to its competition. Harley only builds motorcycles, while its competition also builds cars, boats and several other types of engines or products. This diversification gives the competition bargaining power with its suppliers. This is a huge disadvantage for Harley financially when it comes to manufacturing costs.
In this given case, Harley faces three major problems, which if not resolved, will eminently result in the company missing its targeted growth.
1. The country is falling into a recessionary period where individuals will not be purchasing these leisure types of products. Causes for this major problem brewing in the US are many. In the US for the past few years, the savings rate of the average American family is actually negative. The negative rate indicates Americans are spending more than they are actually earning and the level of debt in the country is staggering. Home prices are falling at alarming rates, which also...

Find Another Essay On Harley Davidson Case Analysis

Industry and Company Analysis of Harley Davidson Inc

2044 words - 8 pages suppliers in order to make any kind of impression in the industry. Given this, it certainly would not be easy for any new firm to enter the market and establish itself in a short span of time. Reference: Boone, L., Kurtz, D. (1992), “Contemporary Marketing” Fort Worth, TX: Dryden Press. Chan K. (2010). “Harley Davidson Inc. – A Case in International Accrual Accounting Analysis on the Risk,” International Journal of Managerial and

Case Study Analysis of Harley Davidson Inc

2427 words - 10 pages Case Study Analysis: Southwest AirlinesHistorySouthwest Airlines, Originally Southwest Co. was conceived in 1968 by Rollin King and Herb Kelleher as a flight carrier to fly between 3 Texas cities. Southwest Airlines was started originally in Dallas, TX and is still headquartered there today. Although Southwest Airlines has had a small number of different executive officers, and presidents, none seem to have the universal impact and lasting

Harley Davidson case analysis -- with IFE, EFE, CPM, and TOWS matrix

1587 words - 6 pages INTRODUCTIONCompany Mission Statement:"We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycled and branded products and services selected market segments"Company Vision Statement:"Harley-Davidson is n action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders (customers

Harley Davidson

2961 words - 12 pages Harley-Davidson Case Study Introduction of the Company In 1903 William Harley and Arthur Davidson produced the first Harley-Davidson motorcycle for sale to the public. The first year’s production was only three motorcycles with one dealer. In 1909, Harley-Davidson introduced the first? V-twin engine, which is still the company standard today. Harley-Davidson rapidly grew to the largest motorcycle manufacturer in the world by early 1920s, with

harley davidson

1732 words - 7 pages excess noise were additionally under assault in many nations. This assault lead to re designing of Harley Davidson at times. Innovative work involves huge cost. I feel general Harley-Davidson has not seen any noteworthy drop-off regarding creation or deals, with net incomes really climbing from the end of the detailed analysis in 2003 to its latest report. The offer cost of Harley-Davidson's stock has stayed virtually the same, with it

Harley Davidson

2140 words - 9 pages Case Study: Harley-Davidson, Inc.IntroductionHistoryThe Harley-Davidson case presents a unique example of a unique company that, due to their remarkable customer loyalty, was able to go from nearly bankrupt to successfully gaining a substantial portion of the market in a niche product.The company was able to gain market share and profit by substantially restructuring their business plan. Harley-Davidson changed from a traditional large batch

Harley Davidson

2391 words - 10 pages , especially during the election season as politicians discuss the countless jobs which are rapidly being shipped overseas where companies can acquire cheaper labor. Fortunately, a case like Harley-Davidson can provide hope, and studying Harley's experience may give a struggling company insight on how to overcome the challenges they face. Opportunely, not only has this case been well documented, the now retired CEO, Rich Teerlink, and Lee Ozley, "the

Harley Davidson

2730 words - 11 pages group. Dealers were compelled to provide a higher standard of efficiency in pre and after sales services. They also had to carry out a full line of Harley replacement parts and accessories, and to perform services on Harley bikes. So, the improvement in network distribution leaded to higher demand that outstripped supply.Question 2: Compare Harley-Davidson resources and capabilities to those of Honda. What does your analysis imply for Harley's

HARLEY DAVIDSON

2823 words - 11 pages satisfied. After the new looped from was finalized, they were ready to begin production. In 1903 they produced three motorcycles. Harley-Davidson erected its first building the current Juneau avenue site in 1906 and incorporated in 1907. In 1907 Harley-Davidson produced 150 motorcycles. SITUATION ANALYSIS      The motorcycle market over 750cc has been increasing over the last five years. The Harley-Davidson 1996 model year

Harley Davidson International Management

5869 words - 23 pages I.     Summary of the case study “Harley-Davidson – rockers’ idol” So, this case study is about Harley-Davidson, a brand of motorcycles and more precisely about its development since his foundation in 1903 by 21-year-old William S. Harley and 20-year-old Arthur Davidson. So, in 2003, it was the celebration of the 100th birthday of the Harley-Davidson. And, in order to commemorate it, fans of this famous brand rode

Harley Davidson-Marketing Principles

3742 words - 15 pages a different supplier Buyers (medium) -buyers are individuals, not other companies so it's very difficult to affect Harley's market -the number of the dealers across the globe is also small and they can't affect seriously Harley's financial position (callisto.ggsrv.com, 2013)PESTLE Analysis Political -Harley Davidson is considered an American Icon -opportunities in emerging economies as China or India are affected by the fact that Harley

Similar Essays

Harley Davidson Case Study

2702 words - 11 pages business in the past and which will impact the business in the future. Not all the components of the framework are pertinent to this case, however, I will identify the factors, which pose the greatest opportunities or threats to Harley-Davidson.2.1.1 Economic FactorsEconomic factors such as economic growth, interest rates and exchange rates can have a profound effect on strategy development in any organisation. Interest rate levels and economic

Harley Davidson Case Study

2434 words - 10 pages , Motorola, Inc; President, Personal Communica-tionRetired.Richard F, Teerlink, Former Chairman and CEO, Harley-Davidson, Inc. retiredFINANCIAL STATEMENTS AND RATIOSThe financial statements disclose information about company's credit policy, inventory valuation, revenue recognition, deprecation method calculations. Also ratio shows company strength and weakness. The areas of concern are receivables, which has been increasing. In the recent analysis of

Going Global: The Harley Davidson Case

2130 words - 9 pages slims down and shapes up for global expansion. Brand Cannel. Retrieved from http://www.brandchannel.com/home/post/2013/11/05/Harley-Davidson-International-110513.aspx Miller, P. (2012). Harley-Davidson in China. China Business Review. Retrieved from http://www.chinabusinessreview.com/harley-davidson-in-china/ Sharma, S.D. (2009). A political-economy of the U.S. subprime meltdown. Economic Analysis & Policy, 39(2), 171-190. Retrieved from http://www.eap-journal.com/archive/v39_i2_00-sharma.pdf Winegar, D. (n.d.). Customers and competition. Retrieved from https://stonybrook.digication.com/dillon_raymond_winegar/Customers_and_Competitors_Executive_Summary1

Mgt499 Module 4 Case Harley Davidson Strength & Weaknesses

1403 words - 6 pages stating the thesis, position, or central theme of your paper, a main body focusing on the key assignment specifications, and a conclusion concisely stating the main points of your analysis and the conclusions you reached.IntroductionHarley-Davidson, Inc. is a U.S. based motorcycle manufacturer which was founded in 1903 and still remain one of the best American companies. Over the years, Harley-Davidson has adopted different strategies to promote