Emma Sergeychik
Professor Peter G. Cerreta
MGT230-50
October 14, 2015
Case 1: Harley Davidson
1. If I were CEO of Harley Davidson I would compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales. Harley’s first export was the U.S. and that was a great start. Later on Harley expanded into European countries and Japan. A great disadvantage with that was that Harley wasn't exposing the product to the rest of the world. Another disadvantage harley had when it was just starting out, was that AMF bought Harley Davidson. They did quickly increase production, however this rapid expansion lead to significant problems with the quality. Later on this gave competitors the opportunity to take over the market. On the bright side shortly after that, a group of 13 managers bought Harley-Davidson back in 1981. These managers found solutions to bring back customers. Their explanation was to know the business and customers, pay attention to details, increase the quality with time and improve service to customers and dealers. Foreign subsidiaries had a few ups and downs as well. At first Japanese motorcycles began to take over the market. This impacted arley greatly. But after it got back on its feet, Japan became one of Harley’s subsidiaries. The Japanese adapted the company’s marketing to fit local tastes. Over all Harley went through a few rough patches, but they still managed to make it on top.
2. Harley has shifted the positioning of its products away from simply motorcycles and more towards being status symbols of a particular lifestyle. There are several implications of cultural factors for positioning in other countries that Harley has targeted for growth- ones like Japan, China, France, Brazil. In Japan, harley bikes are now a symbol of prestige. Enthusiasts see themselves as rebels on wheels.