Submitted by: Submitted by cblackk
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Words: 1604
Pages: 7
Category: Business and Industry
Date Submitted: 11/10/2010 10:49 AM
HARLEY DAVIDSON
Company Background
Founded 1903 in Milwaukee, WI R&D innovations spawned the motorcycle industry around globe In the decades following WWII, the firm floundered and was purchased by AMF, 1969 – sales and brand loyalty plummeted In 1981, the firm is re-purchased by a group of HD executives. In 1986 the firm is listed on the American Stock Exchange, and in 1987 it is listed on the NYSE.
High on the Hog: Company Status as of 2003
Tremendous levels of respect in the industry
Following
the 1981 takeover product quality, dealer service, and customer loyalty improved In 2003 Ranked 3rd in Automotive quality behind Rolls Royce and Mercedes Benz Held a place on Fortune Magazine’s 100 Best Places to Work List
Compounded growth of 16.6% for the prior decade – leading to $4.6B in revenue for 2003
A Rough Road Ahead
Harley Davidson Management was very bullish on their future, analysts not as much
Harley Davidson’s North American image was heavily based on appeal to baby boomers Younger Gen X and Y buyers were not drawn to the “Easy Rider” image
Europe was the largest market for motorcycles, and second largest market for heavyweight cycles.
Harley Davidson struggled in Europe at around 6% share European cyclists often preferred, smaller, sportier machines
Poor production planning had led to an abundance of supply – reducing wait times and forcing the firm to offer special financing to increase sales
These combined effects of a market focus on a narrow demographic group, the difficulty experienced in gaining market share in Europe, and short term forecasting problems point to the need for action
Potential Solutions
Refocus on existing assets such as the VRod and Buell brands
Market
the sports bikes and HD history to Europe
Acquire a smaller, European manufacturer
Smaller
Euro style bikes, engineering, and dealer networks are already in place...