...Harley-Davidson maintains a large margin in its dominance in the U.S. Heavyweight Motorcycle market as compared to its major competitors. While the United States is HOG's most important market, the company sells motorcycles in many other markets worldwide. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality which are why customers deem HD’s premium price to be “acceptable or reasonable”. The Harley-Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base. * Long Term Risk Overall Harley Davidson is a strong company with excellent margins and constantly growing revenues. The main concern for Harley is whether or not they can sustain their growth in the face of improvements in their competitors’ products and a maturing market. One major trend facing Harley Davidson is that average age of a Harley Davidson is getting higher, meaning the company is not as successful now as it has been in the past at attracting new and younger riders. This is also evidenced by the slightly weaker sales in less powerful entry level bikes. Many of HD’s competitors are more diversified...
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...1.0 Environmental Appraisal Analysis Environment refers to factors that can affect Harley Davidson’s directly or indirectly Kotlar and Armostrong (2011). For environmental analysis, Top-Down Approach will be followed. First, Harley should consider macro factor that can influence marketing plan. These will be evaluated with PESTEL analysis. Second, the company has to take insight on motorcycle industry of UK to examine competitiveness and long-term business prospects (Elliott, and Patton,1996). Porter’s Five Forces Model will analyze the industry. Finally, a SWOT analysis will be done to determine company’s suitability and vulnerability with UK market. So, the analytical framework will be as below. Figure 1: Framework for environmental Appraisal 1.1PESTEL Analysis The following factors will be considered as influential in PESTEL analysis. More factors will be included which management consider very important to take a strategic marketing decision. 1.1.1Economic Factors Economy of UK is rebounding after recession, which is again restoring consumers’ confidence for purchasing luxury product. Trading Economics (2013) stated The economy in second quarter of 2013 is growing .3% more than in 2012. The following chart will show the recovery of UK economy from fragile situation. Figure 1.2: GDP growth rate of UK Beyond economic parameter, the duty over foreign firm’s motorcycle export to UK is 6% where in addition to that VAT will be 20% on foreign...
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...Harley-Davidson Case Analysis MGMT 4290 Professor McGowan Keiven Cosgriff I. CORE PROBLEM Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled...
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...but we would like to know what you think of this figure. Does it match with your expectations? Would you say that today Victory isn’t the growth drivers that you had expected? Did you face any significant problem during the launching of the motorbike? (Bad reactions of competitors, lack of understanding of customers, Wage-claim or strike by workers ) According to you, are you able to increase the sales? If yes do you have any idea of the potential percent of increasing and how to reach this objective? If no, we think that a company of this size can have higher expectations, and hope more of their sell. This is precisely where we can intercede, because our company well knows this market, we have already launched for example the mini for BMW and regarding to your notoriety and the market structure we should be able to significantly increase your sell. What would happen if you were able to broadcast a strong and proper image of Victory? Do you think it could increase significantly the awareness of Victory? According to you what makes Victory different of...
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...rates of the markets for new products – Potential uses – Substitute products – Complementary products First Mover Advantage A first mover is a firm that takes an initial competitive action. Advantages of first movers If successful, the firm earns above-average returns until other competitors are able to respond effectively. Develop customer loyalty. Harley-Davidson has been able to maintain a competitive lead in large motorcycles due to intense customer loyalty. Disadvantages of first movers High risk High development costs High demand uncertainty First mover market entry • Advantages Above-average returns until other competitors respond effectively Start down the learning curve earlier Opportunity to gain customer loyalty Opportunity to set standards Disadvantages • Uncertainty about demand • High development costs • Risk of adopting a losing standard (Beta/VHS) • • • Forces Shaping Industry Competition Threat of new Entrants Bargaining power of Suppliers Rivalry among Existing Competitors Bargaining power of buyers Threat of substitute products Forces Defining Competition In Mini Steels Rivalry • Diversification in product lines, ex pipes • Move towards high quality bars, structural shapes • Acquiring or adding new units Buyer’s Power • Boom in construction industry • Demand for high quality bars and large structural shapes • Reduction in scrap demand at ISP Supplier’s • Locating within 200-300 miles of markets Power ...
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...VIDEO GUIDE Advertising: Principles and Practice, 8th Edition Moriarty/Mitchell/Wells Segment 1: AFLAC Summary That wacky, quacky duck brought AFLAC to a high spot among most-recognizable ads and brand names. The insurance company is growing quickly as a result of this greater name recognition. It achieved 89 percent brand recognition in a relatively short time, resulting in $10 billion in sales and about a 25 percent compound growth rate. AFLAC had spent millions of dollars on advertising with little or no effect and almost no market awareness. Clearly, the current strategy was not working. This led the management team to decide to try something bold to increase market awareness. The advertising agency came up with many different ideas, but one crazy one—a duck. AFLAC tested the ad concepts and, as we know today, the duck yielded the highest results. The goal of advertising is to create awareness, while the actual sale comes from the agents selling the complicated insurance products. Discussion Questions 1. What other industries, products, or brands have used humor in advertising to help position themselves in the marketplace? Do you think the strategies have worked? Where wouldn’t humor work? Humor wouldn’t work all that well with serious purchases (e.g., health), but one might think it wouldn’t have worked with something as serious (boring?) as insurance. Might that be because the humor is associated only with the name and not the insurance company’s attributes...
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...1. Renault Duster Case Study 2. 2. Renault India • Renault came to India in 2005 in a JV with Mahindra and launched the Renault-Mahindra Logan • Within a short span of 5 years, Renault ended its JV with Mahindra and planned to strengthen its network in India by launching new cars by 2011 • Fluence became the first car launched by Renault in India • Expanded it portfolio by launching Koleos and Pulse • However, it was 2012 which proved to be a tipping point for the company when it launched its iconic compact SUV Renault Duster 3. 3. Dacia Duster • Duster was officially launched at the Geneva Motor Show, by the Romanian based Dacia group • Dacia is one of the Romania based automobile company founded in 1966 • It was later acquired by Renault in 1999 with an ambition to make Romania the automobile hub for Europe and Central Asia • Duster positioned as the ‘shockingly affordable car in Europe is considered as one of its most successful launch 4. 4. SUV Market in India SUV’s MUV’sVehicle Categories in India Renault’s Category Innovation Compact SUV A SUV that married the comfort of a sedan, to the rugged strength of a SUV 5. 5. Renault Duster “Made in India” • Globally sold as Dacia Duster, it was sold as Renault Duster in India due to higher brand awareness among Indian consumers for Renault • Globally positioned as the ‘shockingly affordable’ car it was re-positioned as ‘for the unstoppable Indian” • Highly Localized, carrying 60 per cent localized parts 6. 6...
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...Charles E. Harvey Thomas C. Lawton (McGraw-Hill, New York, 2006) Table of Contents Dedication Acknowledgements Table of Contents List of figures Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Breakout Strategy Getting on the Fast Track Staying out Front Breakout Dynamics Putting Vision to Work Being a Magnet Company Delivering the Promise Executing Breakout Breakout Leadership Appendix: case study companies Index List of Figures Figure 1.1 Figure 2.1 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 Figure 5.4 Figure 5.5 Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 7.1 Figure 7.2 Figure 7.3 Figure 8.1 Figure 8.2 Figure 8.3 Figure 9.1 The Breakout Strategy Cycle Companies Getting on the Fast Track Companies Staying Out Front Types of Capital and the Capital Accumulation Process The Vision Wheel State Transition for Harley-Davidson: Organization State Transition for Harley-Davidson: Culture State Transition for Harley-Davidson: Relationships State Transition for Harley-Davidson: Markets The Six Pillars of a Value Proposition Leveraging up the Apple Value Proposition Reconciling Different Value Propositions Leveraging up Samsung Electronics’ Value Proposition Components of a Business Model Aligning the Business Model and Value Proposition Business Model Needs Analysis Delivering Strategy System Balance and Strategy Delivery at CEMEX Organizational Culture and Cultural Reproduction Breakout Leadership Capabilities ...
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...Toyota (Chapter 1) Overview. This case concerns the systems used by Toyota to become the third largest automobile manufacturer in the world. The case illustrates how this organization strives to serve customers and achieve a profit. The case intentionally emphasizes features of Toyota's manufacturing system, rather than its marketing strategies per se, to show how the whole organization is focused on serving customer wants and needs, not just the marketing department. Suggestions for Discussion Questions 1. In what ways is Toyota's new-product development system designed to serve customers? There are a number of features to this system that make it customer oriented. The Toyota system responds more quickly than competitors, allowing the company to correct any mistakes and react to market trends faster than competitors. The system has a chief engineer responsible for the product from design to marketing. This may allow consumer research to function as a direct input into engineering specifications rather than become a secondary concern after the product is designed. Since the corporate philosophy is to serve customers, consumer inputs are more likely to be used develop better new products. 2. In what ways is Toyota's manufacturing system designed to serve customers? There are a number of features in Toyota's manufacturing systems that are designed to serve customers, including the following features. Employees, even on the assembly line, are trained to consider their...
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...deceased happens to be, several relatives from across the country are there within two days of the occurrence. I take great pride in the fact that my family members are willing to go to such lengths to be with their family members when they most need it, and as immediately as possible. After the initial gathering of friends and family takes place, a ceremony is normally in the works. My experience is that our family is geared towards having a memorial service instead of a funeral service. Often we take advantage of the deceased’s hobbies or interests and incorporate them into the ceremony. For example, my great uncle David passed away five years ago. In order to celebrate his life and what he loved, almost everyone wore some type of Harley Davidson memorabilia because he enjoyed riding his motorcycle so much. After the ceremony, there is always some type of reception, usually held at the eldest family members home, where there is plenty of food to go around everyone five or six times. After the day of the memorial passes, everyone usually stays in town for another day or two, and inevitably they return home, wherever home for them may be. As I said before, I was not raised in a Christian home, so whenever occurrences of...
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...danderson@bentley.edu Office Phone: 781 891 2238 Class Times: Section 100: Monday, 7:30 - 9:50 pm Office Hours: For quick/easy questions, send me an email. For tough questions, career advice and other matters, face to face is better, and I’m happy to meet with you by appointment. Description: GS601 provides an enterprise-wide perspective on the management of information technologies (IT), software applications and the operational processes they support, and the data and knowledge that inform business processes and decisions. The course focuses on how IT professionals and non-technical managers work together to ensure that applications and data are aligned with organizational strategy and business processes. The cases and readings examine how companies in various industries use IT to serve customers well, manage operations efficiently, coordinate with business partners, and make better business decisions. A key theme -- IT as a double-edged sword -- reflects a central challenge: how to maximize the strategic benefits of investments in hardware and software, while minimizing accompanying technical and business risks. The course places equal weight on technical and managerial skills. Our primary objective is to help students prepare to be effective contributors to IT initiatives in partnership with IT professionals, including external service providers here and abroad. Course Learning Objectives: · Understand how information systems – comprised of...
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...Harley Davidson (HD): Preparing for the Next Century Q1 How would you characterize HD’s primary challenge(s) as of the end of 2005? Stock prices dropped 17% due to lower forecasts, in spite of positive trending financials. Lower forecasts were due to growing saturation within their target market. Saturation was occurring due to fewer younger buyers replacing aging buyers. Fewer younger buyers was occurring because HD did not have a highly successful plan to win them over, noting pointed attempts with Buell and the V-Rod. Therefore: * their issues are not cyclical, but structural * their issues are not urgent in the sense that creditors will force bankruptcy in the immediate future * however, they must be addressed to maintain long-term strength as an organization * further, this is more of a strategic issue than it is tactical * and, HD may be approaching the upper limits of their current business model Stock analysts were seeing that HD stock was inflated as a strong working solution did not appear to be in place to address these issues. All things being equal, past performance did not appear to be sustainable. Q2 Deconstruct HD’s macro environment (PEST) and industry (Porter’s 5). Economic: Given that HD is a big ticket discretionary consumer luxury product, the strength of the economies in their principle markets is very important. An economic downturn would have a downward pressure on sales. Conversely, further economic growth would create a...
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...Business Basics A Introduction A sign posted beside a road in Colorado states, “Failing to plan is planning to fail.” Playnix Toys posted the sign after successfully completing its 20th year in the toy business in Colorado. The company’s mission is to provide a superior selection of high-end toys for children of all ages. When the company began, it generated interest by using unique marketing strategies and promotions. The toy business has a lot of tough competition. Large chain stores such as Wal-Mart and Target offer toys at deep discount prices. Finding the right strategy to remain competitive is difficult in this industry, as FAO Schwarz discovered when it filed for bankruptcy after 143 years in the toy business.1 This plug-in introduces basic business fundamentals beginning with the three most common business structures—sole proprietorship, partnership, and corporation. It then focuses on the internal operations of a corporation including accounting, finance, human resources, sales, marketing, operations/production, and management information systems. A.1 LEARNING OUTCOMES A. 1. Define the three common business forms. A. 2. List and describe the seven departments commonly found in most organizations. A. 3. Describe a transaction and its importance to the accounting department. A. 4. Identify the four primary financial statements used by most organizations. A. 5. Define the relationship between sales and marketing, along with a brief discussion of the marketing...
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...------------------------------------------------- © Kozminski University 2014 Executive Summary The aim of this analysis is to decide whether to grant a loan to BMW Group. BMW is one of the biggest car producers in the world. The company produces also motorcycles and offers the financial services. In the ‘Conclusions’ section it is presented, that the company is stable and well-performing. Also the ratios are growing and its position on the market is strong. The Company BayerischeMotorenWerke AG (BMW) is a German holding company and automobile manufacturer that focuses on the production of luxury cars and motorcycle. It divides its activities into the three main segments : Automobiles, Motorcycles and Financial Services. The company owns three brands: BMW, MINI and Rolls-Royce. BMW being also a Financial Services company, offers its customers a loans and...
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...intriguing and creative Guerrilla marketing. Indulge yourselves with MARKSMAN traditions such as TWEETS, ITS ALL ABOUT AD-ITUDE, REWIND and get acquainted with our new addition “SQUAREHEAD”! We, at Interface are overwhelmed by the increasing number of entries we have been receiving in response to our call for articles. We take this opportunity to thank all our readers for their enthusiasm and for making our job more challenging- we love it! Keep writing in! We would also like to congratulate the winner of our featured articles section Mr. Abhimanyu Sukhwal. Our featured articles shall take you through the unique, penniless marketing of Old Monk; explore how 4Ps are being used to sell not just products or services but also socio-politico awakening, case in point, AntiCorruption campaign by Anna Hazare; next we open the Pandora‟s box...
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