Harley Davidson

EXECUTIVE SUMMARY

Harley-Davidson is a mature American company that prides itself on building an American dream through its motorcycles. Since Harley-Davidson started producing motorcycles in 1903, the company has not only invented motorcycles as a form of transportation but has also created a life style. Since the late 1990’s, and even more importantly since the financial crisis in 2008, Harley-Davidson has experienced a decline in sales. This is the result of the company’s aging customer base, cheaper foreign imports and competitive products, and a credit crisis which has made it difficult for clients to purchase and finance motorcycles.

Several recommendations to address decline sales and reducing costs are provided in Section A, however, the most pressing issue for Harley-Davidson is to address its aging customer base. Older customers create a challenge for the company as fewer riders will upgrade to more costly motorcycles or stop riding motorcycles altogether as they continue to age. The company needs to expand its customer base and attract younger riders, new and inexperienced riders and female riders. Based on extensive research and feasibility studies, it is recommended that the company introduce a smaller, middle weight, automatic motorcycle. By introducing a product line that is smaller and automatic, Harley-Davidson can diversify its customer base to include riders who do not want the size and power of a typical Harley-Davidson motorcycle. The company can encourage new riders to start small and gain experience. As customers’ experience and disposal income grows and they are ready to trade up to larger motorcycles, Harley-Davidson will be a first choice as customer service, quality and the “customer experience” is already established in customer minds.

The Strategic Analysis provided in Section B is based on the introduction of the SportsMatic 650, a middle weight, less powerful, automatic motorcycle. Strategic Goals have been...