...Case Study 5 Kim Chau California Southern University MKT 86500 September 19, 2014 Dr. Hoon Harley-Davidson: Style and Strategy Have Global Reach Introduction In the case of Harley-Davidson, Style and Strategy Have Global Reach, a question of survival in an economic storm is raised – given a new CEO and a revised vision, can Harley-Davidson weather trouble times (Schermerhorn, 2011). Historically, Harley-Davidson was founded by William S. Harley and Arthur Davidson in 1903. They built their first three motorcycles in a shed in Milwaukee. By 1909, they introduced their trademark bike. It had 2-cylinder, v-twin engine which was also the faster bike at the time coming in at 60mph. During World War I, almost half of all Harley-Davidson motorcycles produced are sold for use by the U.S. military. At War's end, it was estimated that the Army used some 20,000 motorcycles in their efforts, most of which were Harley-Davidsons. By 1920, Harley-Davidson is the largest motorcycle manufacturer in the world. New Harley-Davidson motorcycles can be purchased from over 2,000 dealers in 67 countries worldwide (Harley-Davidson Timeline, 2014). In 1969, American Machine and Foundry Co (AMF) merged with Harley. During the early 80’s recession, market shares started to decline, revenue was at an all-time low. According to Daniel Klein’s tariff policy analysis (Klein, D., 1984), in 1980 the company had record sales of $289 million and pretax earnings of $12.3 million, but in 1982 sales...
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...Case Study 6.1: Harley-Davidson, Inc. Zachary NewComer 11/06/14 Auditing Prof. Riggs (1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three. 1. Suppliers might leak information to Harley-Davidson’s competitors 2. Suppliers might not have the same ability to be technologically advanced as Harley-Davidson’s new systems 3. Going to an internet based system makes you susceptible to people hacking the system and acquiring information. 4. When you have an internet based system it could go down at any point making the time it is down a loss of productive time that in the old system would not have been lost. 5. Hiding fraud would be easier because more people have access to system and there is no longer a paper trail for auditors to trace in the new system. 6. If the system permanently crashes or is destroyed by something like a fire you might not be able to save some or all of the information to continue business afterwards. 7. If Harley-Davidson ever wanted to do business with a different supplier they might not be ready or have the ability to do business with them. [2] For each risk you identified in question number one above, identify a control Harley-Davidson might have implemented to mitigate that risk. 1....
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...1 HARLEY-DAVIDSON. THE LIFESTYLE HARLEY DAVIDSON: The Lifestyle 2 Synopsis In this case study we will analyze Harley-Davidson unique way of marketing. How they chose to invest the majority of their marketing budget back in their customers, to give the ultimate Harley experience and way of life. And how all of the above translate to exceptional brand loyalty and growing sales in traditional and new demographics. 3 The Lifestyle Harley-Davidson has positioned itself as a way of life, with an extremely loyal and growing customer base. Harley Davidson’s H.O.G (Harley Owners Group) has about one million members1, and it is being referred internally as the ‘Original Social Network’ 2 H.O.G. members enjoy benefits such as a magazine subscription (Hog Tales and Enthusiast), the H.O.G. Touring Handbook, a dedicated roadside assistance service, an insurance program that was designed specifically to their needs, a theft reward service, a travel center, and a “Fly & Ride” program allowing H.O.G members to rent Harley-Davidson bikes wherever they fly3. In addition, Harley-Davidson encourages their customers to customize their bikes and make it ‘their own’. They are community members who take pride in their creation and/or special connection to the community by personalizing their motorcycle and giving it their own personality. As a result (or as a cause), Harley’s customers, and H.O.G members are extremely engaged and are being brand advocates throughout the country and...
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...Future Harley-Davidson Report MKTG 445 Dr. Mattson September 29, 2004 Jason Conlon Daniel Adkins Eric Huffman Kyle Hahn Table of Contents Introduction Page 3 Global Competition Page 3 New Competition Page 5 Competitive Remakes and Accessories Page 7 Motorcycle Buyers Page 9 Motorcycle Company Websites Page 11 Conclusion Page 13 Works Cited Page 14 Introduction Over the past few years, Harley Davidson has had to make numerous changes to remain competitive. The first thing we will take a look at is global competition. Harley Davidson’s increasing demand overseas has caused many changes over the past few years. The second thing we will take a look at is new competition. The demographics of the nation have been changing, due to the aging of the “baby boomers,” and Harley has to make changes in order to keep up with the competition of the market. New competition ranges for sport bikes to other competing cruiser models. The third thing we will look at is competitive remakes and accessories. The competition for Harley is on the rise due to the high interest in custom motorcycles and cheaper accessories. The fourth thing we will take a look at is motorcycle buyer’s demographics. The market is ever changing and it is important to look at how Harley is adapting to these changes. The final thing we will address is how the...
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...Brand Management Case study: Harley-Davidson Contents Question 1 3 Question 2 5 1. Brand elements 5 2. Criteria 6 Question 3 8 1. Custom Vehicle Operations program (CVO) 8 2. Harley Owners Group (HOG) 8 3. Bar café 8 4. Exchange of motorcycle 9 5. Companies can learn from H-D 9 Question 4 10 1. Definitions 10 2. Equally successful 10 3. Non-equally successful 10 4. Co-branding or not? 11 Question 1 ------------------------------------------------- Make a detailed SWOT Analysis of the Harley-Davidson Company, paying particular attention to the marketing mix (Product, Price, Promotion, Distribution, Personnel) STRENGTHS | WEAKNESSES | * Net income of 2003 was $760mn, its more than 30% as compared to the previous year 2002 ; * The standard and performance segments of Harley Davidson make up 70% of the European heavy weight motorcycle market ; * Harley-Davidson operates in two segments: Harley-Davidson motorcycles & related products and HDFS (Harley-Davidson Financial Services) ; * Harley-Davidson is the only major American heavyweight motorcycle manufacturer ; * Strong brand name ; * The HOG (Harley Owners Group), which have a 750,000 members worldwide is the industry’s largest company sponsored motorcycle enthusiast organization ; * Buell Riders Adventure Group (BRAG) was also formed recent ; * Customization of the bikes, this is Harley-Davidson’s major revenue maker; * Harley-Davidson have a good marketing...
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...HARLEY – DAVIDSON: Preparing for the Next Century Harley-Davidson (Harley) was founded in 1903 as a small business and became the largest motorcycle company in the world after 15 years of operations. Moreover, by 1950, Harley-Davidson was the leader in the U.S. Market with over 60% market share. Historically, the key success factor in Harley-Davidson combined two important ingredients: several competitive advantages and favorable conditions in the motorcycle industry since the industry was almost new and the barriers to enter or the forces affecting it were weak (see appendix 5.1). After the victory of Walter Davidson riding a Harley-Davidson in a race and the development of unique innovations such as the V-twin engine, Harley obtained a strong reputation of being the pioneer in the motorcycle industry. Further, a high investment in Research, Development and innovation, an adoption of an “image and lifestyle” marketing strategy, the “raw power” appearance of its products, and the powerful connection with the American national symbols, made Harley-Davidson very attractive for the society, and help the brand in gaining customer´s loyalty (especially the men). Through Porter´s 5 forces framework (see appendix 5.1), it can be noticed that by the moment Harley-Davidson entered to the industry, the market was plenty of business opportunities and this context allowed Harley-Davidson to obtain a strong position until 1960: low barriers to entry due to the technological investment...
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...Research Proposal Organization: Harley-Davidson Topic: Evaluating a New Service or Product. The new product is “green” motorcycles. Motorcycles have become an excellent means of transportation and a fun hobby for many people in America. Bikers across the country love motorcycles for their efficient mileage, sleek style, and class. Harley Davidson specializes in the production of first class motorcycles and has led the way for innovation and technology in their field. The first bike produced was in 1903 by the founders William S. Harley and Arthur Davidson, (Harley-Davidson USA, 2010).The concept of Harley-Davidson the organization is to challenge itself to create the best quality, chic, and novel motorcycles. Harley-Davidson seeks to build bikes tailored to the consumer and what they enjoy, (Harley-Davidson USA, 2010).The individualism and needs of the customer is paramount. In recent years there has been a push for environmentally friendly means of transportation. Much of the automotive industry has started to produce fuel efficient cars and trucks to please the buyer population. Harley-Davidson looks to accomplish the same goal of satisfying the environmentally concerned purchaser. Several procedures can be used to achieve this in the motorcycle industry including developing alternative fuel to power the bikes and producing motorcycles from recyclable material. Making an eco-friendly motorcycle will not only keep Harley-Davidson competitive, but also open the door...
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...Case Study 6.1: Harley-Davidson, Inc. Zachary NewComer 11/06/14 Auditing Prof. Riggs (1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three. 1. Suppliers might leak information to Harley-Davidson’s competitors 2. Suppliers might not have the same ability to be technologically advanced as Harley-Davidson’s new systems 3. Going to an internet based system makes you susceptible to people hacking the system and acquiring information. 4. When you have an internet based system it could go down at any point making the time it is down a loss of productive time that in the old system would not have been lost. 5. Hiding fraud would be easier because more people have access to system and there is no longer a paper trail for auditors to trace in the new system. 6. If the system permanently crashes or is destroyed by something like a fire you might not be able to save some or all of the information to continue business afterwards. 7. If Harley-Davidson ever wanted to do business with a different supplier they might not be ready or have the ability to do business with them. [2] For each risk you identified in question number one above, identify a control Harley-Davidson might have implemented to mitigate that risk. 1....
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...Harley Davidson Harley Davidson also known as the Ferrari of bikes states in their mission statement “We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments (Youtube).” Harley Davidson strives to build and provide not only a mode of transportation but also a lifestyle. From their inception Harley Davidson has “enjoyed an active path of enormous growth and gradually emerged as the most recognized motorcycle producer in North America.” Despite economic turbulence, the company has managed to operate efficiently, largely supported by its strong financial backbone (Repine Jr., 2011). Other key strategies such as branding and global expansion have enabled the company to sustain its growth rate for a long term. Harley-Davidson is committed to providing the best customer service in every department. Although Harley Davidson’s mission implies the company connection with customers helps create superior value, Harley Davidson still needs to formulate a way to measure customer service. The company uses surveys to collect data relating to customer service, customer experience, and customer opinion. One method Harley Davidson uses for data collection is a panel of owners. Harley Davidson has an exclusive target market ranging in mostly men, although it is expanding out to woman and teens. Middle aged men possibly going...
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...Summary of Harley-Davidson case study Harley-Davidson is the first name that comes to our mind when the topic about motorbikes comes up. The rugged yet beautiful motorbike is a U.S. bound brand that inspires many to own its customized bike with the iconic engine (Kotler and Keller, 2012). Today, Harley-Davidson motorbikes are well known by all; bikers and non-bikers around the globe. The two big questions running through our minds would be how it is accepted globally and how their customers remain loyal. Well, the dealers of Harley-Davidson maintain close relationship with their customers via face-to-face communication and social media (Kotler and Keller, 2012). What helps Harley-Davidson to understand their customers need better is by conducting research to keep up with their customers changing expectations, which comes with the trend and their experiences. Greater brand loyalty and unique experiences is built when they know Harley-Davidson takes their opinion into account very seriously. Reflection of freedom, individualism, the ability to connect with their friends through the H.O.G program (Harley’s Owners Group) is what one would get when buying a Harley. This program allows the members to enjoy various benefits such as discounts, major rides, charity events, new model launches, fund raising, riders appreciation night and much more. Harley-Davidson feels that people development such as by providing training, sharing company values, philosophy, effective communication...
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...Case Study: Harley-Davidson -Analyse Harley-Davidson resources and capabilities, and identify its key strengths and weaknesses - Analyse the international competitive environment in which Harley-Davidson is operating to identify its main threats and opportunities. Recommend a forward strategy for Harley-Davidson, which addresses these issues. International Management Individual Assignment Table of Contents 1. Introduction 3 2. Harley Davidson Overview 4 2.1. Harley-Davidson Current Strategy 4 2.2. Resources And Capabilities 5 3. Industry Analysis 6 3.1. Porter’s Five Forces Model 6 3.2. International Competitive Environment 7 4. SWOT Analysis 9 5. Forward strategy recommendation for Harley-Davidson 10 6. Conclusions 12 6. References 13 1. Introduction This report is based on Harley-Davidson, Inc., case study. The aim of this report is to analyse industry and international competitive environment where Harley-Davidson is operating in. One must apply and fully analyse theoretical concepts and frameworks in order to fully comprehend how Harley-Davidson is differentiate itself in the international competitive environment and what strategies is using to achieve higher market share. The empirical material is being analysed by exploring the general information of Harley-Davidson company itself, following by the industry and competitive environment analysis, review of SWOT theoretical framework. Finalising with the recommendations of forward...
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...Harley Davidson Case Study 1. 1. Building Brand Community on the GROUP 4 Harley-Davidson Posse Ride Prepared for: MMA035, Dr. Csilla Horváth Prepared by: E.L. Mulder, C. Neghina, D. Oosterveer, L. Partouns, S. Voet December 10, 2009 Case Study 2. 2. Building Brand Community on the Harley-Davidson Posse Ride 1. What are the benefits of long rides as Posse, for customers of Harley Davidson (HD)? Evaluate the relational effects based on Exhibits 7 and 10, which refer to pre and post evaluations. For any Harley Davidson customer, long rides – such as the Posse – hold some clear benefits. Firstly, each participant is given the chance to discover part of the USA. The long rides explore the country in depth and give participants the chance to explore various landscapes, hidden parts of the USA or legendary roads, thus broadening their horizons. Secondly, HD customers come into contact with people sharing the same passion for HD, riding bikes and adventure, turning such rides into social gatherings for Harley enthusiasts. Furthermore, the rides offer customers the thrills and excitement associated with biking over long distances, with unpredictable weather conditions, changing sceneries, road mishaps and great road stories. The customers see these trips as big American adventures, a change from the daily routine and a way of experiencing complete freedom. A more tangible benefit is that participants of this sort of rides have the chance to pride themselves of having participated...
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...HARLEY-DAVIDSON HOG CASE STUDY BRAND MANAGEMENT 6M:223:EXC SUMMER 2010 Introduction After near extinction Harley-Davidson has become one of the premier motorcycle manufacturers and distributors in the world. A primary driver in this success has been their attention to building the Harley-Davidson brand with attention to customer loyalty, specifically with the creation of a brand community of customers – the Harley Owners Group (HOG). Through HOG they have been able to connect with customers at the grass-roots level. Their sponsorship of regional and national HOG events has provided them with one-on-one access to their customers, resulting in strong, favorable, and unique associations for the Harley-Davidson brand. In this case study we will address several key questions/issues: 1) Evaluate the Harley-Davidson strategy and performance in getting close to their customers 2) Determine the HOG role in developing community for the Harley-Davidson brand 3) Provide ideas on how HOG can be maximized, including how the Posse Ride should be positioned among the mix of activities 4) Indicate what steps can be taken to maximize the effectiveness and profitability of the Posse Ride, and other HOG events Harley-Davidson and the Customer Experience There is no consumer community that is more passionate about a product than that of Harley-Davidson owners. Through HOG-sponsored rides and rallies there is a sense of togetherness and challenge, which creates a...
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...TASKS You are required to read the attached case study thoroughly. Harley-Davidson, Inc.: Troubled Times Increase H-D’s Reliance on International Sales Task You are required to write a term paper answering the below-mentioned questions based on the given case-study. Question 1 With reference to Porter’s Generic Strategies, which generic strategy is Harley Davidson using? Illustrate your answer with relevant theory or case scenario information. (10 marks) Question 2 Critically evaluate the effectiveness of the strategy you identified in Question 1) above for all the countries described in the case. You need to use case scenario information or relevant theory to illustrate/support your answer. (15 marks) Question 3 (i) Perform a Porter 5 forces analysis on each of the geographic areas where Harley Davidson faces its international competitors....
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...Case Introduction Harley-Davidson, Inc. was established and entered the motorcycle industry in 1903. The company has primarily focused its resources on the heavyweight motorcycle segment of the industry and is differentiated from its competitors because its focus is only on the motorcycle industry as opposed to other transportation markets such as: cars, boats, ATVs or snowmobiles. The company has experienced both the “good and bad times.” The company was founded by several young men in 1903, was bought out by AMF, experienced a leveraged buyout and ultimately became incorporated with its IPO in 1986. In addition to a constantly changing ownership structure, Harley-Davidson has also experienced significant issues with quality control, inconsistent management and a reputation for being associated with tattoos and pornography. By 1998, the company resolved its quality and image concerns, gained financial stability but continued to face supply concerns and threats of competition by new entrants and possible product substitutes. The challenge facing current Harley-Davidson management is how to combine the company’s approach in marketing the Harley image with consistent financial stability and increasing market share to outperform the competition. Industry Overview Harley-Davidson competes against other American and several internationally based companies within the motorcycle industry. Harley-Davidson...
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