CASE

19

Harley-Davidson Inc. 2008:

Prepared for Harun ur rashid

Prepared by Name: Masud Rana ID: 11102205 Section: D Program: BBA

IUBAT- International University of Business Agriculture and Technology

Introduction
Harley-Davidson is an American motorcycle manufacturer. One of two major American motorcycle manufacturers The company sells heavyweight (over 750cc) motorcycles have a distinctive design and exhaust note. especially noted for the tradition of heavy customization Harley-Davidson sustains a loyal brand community

History
William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson motorcycle. The bike was built to be a racer, with a 3-1/8 inch bore and 3-1/2 inch stroke. The factory in which they worked was a 10 x 15-footwooden shed with the words "Harley-Davidson Motor Company" crudely scrawled on the door. Arthur's brother Walter later joins their efforts.

Mission statement
We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stakeholders.

Proposed Vision
To be recognized as the best motorcycle company in the world

External Environment Economic Confidence in economy is directly proportional to the purchasing of consumer items. The economic crisis will hit this segment very much. Currency fluctuation is also a big problem in this industry Revenue from sales outside the using increased 7% from 2006 to 2007 Technological

As technology changes, customers expectations increase. Harley-Davidson is one of the main manufacturer and user of V-ENGINE configuration. Harley-Davidsons have a wide variety of products according to Standard, Performance, Touring & custom.

PoliticalU.S Government and People are considering Harley-Davidson as an American icon. Federal, state, local authorities have control requirements relating to air, water, noise, and pollution. LegalHarley-Davidson is facing some legal problems in Asian countries, in India there is 60% tariff and various other taxes will cause the price of the bike to double Noise pollution and some emission standards of Harley-Davidson bike is not up to the level of some countries across the globe. EnvironmentalThis industry is the first attacked by environmental activists, the environmental laws varies from country to country. In Europe its Euro, in India its BS. Harley-Davidsons one of the main problem is this environmental problems Socio-cultural Traditionally targeted to upper middle class males. Increased demand by women for motorcycles. Industry Environment Five forces affect the industry environment1. Potential development of substitute products 2. Rivalry among competing firms 3. Bargaining power of suppliers 4. Potential entry of new competitors 5. Bargaining power of consumers Internal environment Corporate Structure 1. Divisional Structure: motorcycles and financial services. 2. Centralized decision making: CEO, top executives including board of directors. Corporate Culture 1. Harley-Davidson emphasizes quality, reliability, and styling 2. Passion for the business of riding 3. Acquired Buell to enhance niche product offering

Organizational Activities Analysis Marketing Marketing efforts are divided among dealer promotions, customer events, magazine and direct mail advertising, public relations, cooperative programs with Harley-Davidson/Buell dealers, and national television advertising. HarleyDavidson also sponsors racing activities and special promotional events and participates in all major motorcycle consumer shows and rallies.

Human Resources Management (HRM) Approximately 50% of Harley-Davidsons 9,000 employees ride a HarleyDavidson. All employees, including Ziemer and Bluestein, go through a dealer to purchase their bike. This way, the employees see the customer experience firsthand

Analysis of Strategic Factors STRENGTHSThe standard and performance segments of Harley Davidson make up 70% of the European heavy weight motorcycle market Harley-Davidson is the only major American heavyweight motorcycle manufacturer. Strong brand name Customization of the bikes, this is Harley-Davidsons major revenue maker.

WEAKNESS High price Required production is not met, analyzing the future of Heavyweight motorcycle market *Losing market share continuously, especially in the European market. OPPORTUNITIES Women and younger riders are increasing becoming interested in bikes The international heavy weight market is growing and is now larger than the U. S. heavyweight market Market share increasing in Europe and Asia for the last two years Increasing demand in US markets for bikes Customers value quality parts

THREAT Harleys average buying age is 42 years old and increasing Environmental protection laws Buell division needs to continue to produce a quality motorcycle under Harleys brand name

Reference

www.harley-davidson.com www.google.com Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY, 13th edition, Pearson Education 2012.