...Harley Davidson has had a rollercoaster ride of success. During its earlier years, Harley quickly jumped to the top of motorcycle sales worldwide. With its simple V-Twin engine, Harley had created a bike that was both appealing and reliable. The biggest appeal was how easy the engine was to tinker with as motorcycle mechanics were far and few between, but most of all the sound of “raw power” was what owners loved. This love for raw power and made in America machinery, brought many loyal customer to Harley throughout the 40’s and 50’s. These customers were generally viewed as tough people, such as U.S. Military, Hell’s Angels, and Hollywood rebels. Harley became and America icon and was now associated with things like the U.S. Flag and bald eagles. As Harley continued to lead the way in market share and sales America, the Japanese wanted its piece of this market share. Honda’s entry into the U.S. market was nearly opposite of Harley in their marketing approach, as they stumbled onto a segment of customers being more “Family-Oriented”. In 1965, Honda was selling 1 out of every 2 motorcycles purchased in the U.S. More Japanese firms began to follow Honda, offering quieter, faster, and less expensive motorcycles and began leading the way in sales and market share in the U.S. As Harley’s bottom line began to dwindle away, they had to go public to raise capital. After as dismal IPO, Harley was eventually acquired by AMF who’s CEO tried to drastically change Harley’s handcrafted...
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...9-906-410 REV: APRIL 5, 2007 RICHARD L. NOLAN SURESH KOTHA Harley-Davidson: Preparing for the Next Century There are very few products that are so exciting that people will tattoo your logo on their body. — Richard Teerlink, Retired CEO, Harley-Davidson In 2003 Harley-Davidson, under the leadership of Jeffery Bluestein, celebrated its 100 birthday. The company, which almost went bankrupt in 1970, had successfully shed its product and marketing doldrums and was once again the market leader of the U.S. heavyweight motorcycle industry. For the last 18 years the company had led the industry in retail sales with a commanding lead of 50% market share in the United States and 32% globally. Noted Fortune: “Harley . . . ranks among America’s top growth stocks since its 1989 IPO [initial public offering]. Its 37% average annual gain runs just behind the 42% pace of another ‘86 debutante: Microsoft.”1 While the company’s successful history was in his thoughts, Bluestein was aware of the formidable issues facing him and his top management team. The company’s customer base had grayed considerably since the early 1990s, and the average age of Harley riders rose from 35 to 47 years in the past decade. Younger Americans (25- to 34-year-old men) seemed to prefer the light sports bikes offered by Suzuki, Honda, Yamaha, and Kawasaki. Bluestein recognized these concerns by noting: “The only thing that can stop us is if we get complacent. Even though we’ve been successful, we can’t stand still...
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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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...Table of Contents Executive Summary …..….…………………………………………………………………………………………………………………………1 Harley-Davidson’s Competitive Advantages ..………………………………………………………………………………………….2 Symbol of Innovation and Toughness ……………………………………………………………………………………….…2 Uniqueness and Distinction …………………………………………………………………………………………………………2 Facing Challenges ………………………………………………………………………………………….…….……………………..3 Future Sustainability ……………………………………………………………………………………………………………………3 Vulnerability ……………………………………………………………………………………………………………………………….4 Challenges of the 21st Century ………………………………………………………………………………………………………………….4 Strategies to Address the Challenges ………………………………………………………………………………………….5 Short-Term Strategies as Harley Matures ……………………………………………………………………………………6 Long-Term Survival ……………………………………………………………………………………………………………………..7 DaimlerChrysler Automotive Group …………………………………………………………………………………………………………8 Business Strategies ……………………………………………………………………………………………………………………..8 Production Issues ………………………………………………………………………………………………………………………..9 Harley-Davidson’s Transformation ……………………………………………………………………………………………10 Why DaimlerChrysler Fell ………………………………………………………………………………………………………….11 Ford Motorcycles ………………………..…………………………………………………………………………………………………………12 Strategies ……….…………………………………………………………………………………………………………………………12 Customer-Perceived Value …..…………………………………………………………………………………………………..13 Extension of the...
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...Harley-Davidson: Preparing for the Next Century English 3345 - Business Team #4: Natalie Martell Martha Martinez Virginia Lopez Myles Melendez History, development, & growth: The birth of the Harley-Davidson legend began around the 1900’s, in a small shed in the Davidson family backyard in Milwaukee. What started out as an ambition for Walter Davidson, to be the best bicycle rider, turned out to be a step into a multimillion dollar business. William D., Walter, and Arthur Davidson, along with their long time friend William S. Harley, built their first motorcycle using the best available tools, which were their hands and brains. The Harley –Davidson Motor Company was put into motion in 1903 when they built three of the first model motorcycles, and so began its 100 year journey. In 1907, they had one full-time employee, and they sold 50 motorcycles, so they filed for incorporation of the company. The Davidson’s and Harley were always trying out new innovations to make their motorcycles better and faster. In 1908 the reputation of the company was raised a level higher through the winning victory race of Walter’s Harley motorcycle with the V-twin engine which they designed themselves. This race was one of many that Walter would go on to win with his Harley, and eventually transformed the company into the world's leading producer of motorcycles. They were always looking to improve and make the best machine there could be, and by 1918 Harley-Davidson...
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...Harley-Davidson: Preparing for the Next Century English 3345 - Business Team #4: Natalie Martell Martha Martinez Virginia Lopez Myles Melendez History, development, & growth: The birth of the Harley-Davidson legend began around the 1900’s, in a small shed in the Davidson family backyard in Milwaukee. What started out as an ambition for Walter Davidson, to be the best bicycle rider, turned out to be a step into a multimillion dollar business. William D., Walter, and Arthur Davidson, along with their long time friend William S. Harley, built their first motorcycle using the best available tools, which were their hands and brains. The Harley –Davidson Motor Company was put into motion in 1903 when they built three of the first model motorcycles, and so began its 100 year journey. In 1907, they had one full-time employee, and they sold 50 motorcycles, so they filed for incorporation of the company. The Davidson’s and Harley were always trying out new innovations to make their motorcycles better and faster. In 1908 the reputation of the company was raised a level higher through the winning victory race of Walter’s Harley motorcycle with the V-twin engine which they designed themselves. This race was one of many that Walter would go on to win with his Harley, and eventually transformed the company into the world's leading producer of motorcycles. They were always looking to improve and make the best machine there could be, and by 1918 Harley-Davidson...
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...9-906-410 REV: APRIL 5, 2007 RICHARD L. NOLAN SURESH KOTHA Harley-Davidson: Preparing for the Next Century There are very few products that are so exciting that people will tattoo your logo on their body. — Richard Teerlink, Retired CEO, Harley-Davidson In 2003 Harley-Davidson, under the leadership of Jeffery Bluestein, celebrated its 100 birthday. The company, which almost went bankrupt in 1970, had successfully shed its product and marketing doldrums and was once again the market leader of the U.S. heavyweight motorcycle industry. For the last 18 years the company had led the industry in retail sales with a commanding lead of 50% market share in the United States and 32% globally. Noted Fortune: “Harley . . . ranks among America’s top growth stocks since its 1989 IPO [initial public offering]. Its 37% average annual gain runs just behind the 42% pace of another ‘86 debutante: Microsoft.”1 While the company’s successful history was in his thoughts, Bluestein was aware of the formidable issues facing him and his top management team. The company’s customer base had grayed considerably since the early 1990s, and the average age of Harley riders rose from 35 to 47 years in the past decade. Younger Americans (25- to 34-year-old men) seemed to prefer the light sports bikes offered by Suzuki, Honda, Yamaha, and Kawasaki. Bluestein recognized these concerns by noting: “The only thing that can stop us is if we get complacent. Even though we’ve been successful, we can’t stand still...
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...Harley Davidson Preparing For The Next Century Harley Davidson has had a rollercoaster ride of success. During its earlier years, Harley quickly jumped to the top of motorcycle sales worldwide. With its simple V-Twin engine, Harley had created a bike that was both appealing and reliable. The biggest appeal was how easy the engine was to tinker with as motorcycle mechanics were far and few between, but most of all the sound of ³raw power´ was what owners loved. This love for raw power and made in America machinery, brought many loyal customer to Harley throughout the 40¶s and 50¶s. These customers were generally viewed as tough people, such as U.S. Military, Hell¶s Angels, and Hollywood rebels. Harley became and America icon and was now associated with things like the U.S. Flag and bald eagles. As Harley continued to lead the way in market share and sales America, the Japanese wanted its piece of this market share. Honda¶s entry into the U.S. market was nearly opposite of Harley in their marketing approach, as they stumbled onto a segment of customers being more ³Family-Oriented´. In 1965, Honda was selling 1 out of every 2 motorcycles purchased in the U.S. More Japanese firms began to follow Honda, offering quieter, faster, and less expensive motorcycles and began leading the way in sales and market share in the U.S. As Harley¶s bottom line began to dwindle away, they had to go public to raise capital. After as dismal IPO, Harley was eventually acquired by AMF who¶s CEO tried...
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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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...------------------------------------------------- Harley-Davidson Question 1: What are Harley-Davidson’s current sources of competitive advantage? The challenge for a marketing strategy is to achieve sustainable competitive advantage. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justify higher prices. At present, Harley-Davidson has a number of sources of competitive advantage. 1. Brand image: Since its inception, Harley-Davidson established an image of “raw power”, which became its major selling point. Throughout its history, Harley motorcycles were associated with people who were willing to break the traditional mold or willing to live on the edge. Its brand image reflected rugged individuality and the frontier spirit of the United States. This strong sense of nationalism connected to Harley motorcycles resulted in brand recognition and loyalty that continues to this day. Harley’s “tough” brand image is a competitive advantage in terms of attracting customers who favor or relate to this image. However, in some cases, its brand image is a competitive disadvantage because it does not appeal to certain target segments such as female riders. 2. Product customization: The most distinctive feature of Harley was the V-twin engine. The V-twin engine’s simple design allowed owners to tinker with their engines. At present, Harley offers a complete line...
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...Harley-Davidson/Ducati Case Study November 20, 2013 Question 1 Ducati: Ducati is an Italian motorcycle manufacturing company that is renowned for its high performance and stylish motorcycles. Ducati is committed to racing competitions, state of the art design, style, and most importantly, an immense passion for bikes. Ducati has created a strong bond with its customers, beginning on the racetracks and spreading worldwide. Ducati builds high performance bikes for bike enthusiasts, known as “Ducatisti”. Ducastisti are individuals who value performance as the main attribute in a motorcycle. Since Ducati delivers this, it creates brand loyalty. Since the early 90s, Ducati has created a distinctive community image with local and national Ducati enthusiast clubs by placing Ducati as a symbol of refined skills and craftsmanship that every motorcycle evokes and represents. In the World Superbike Championship, Ducati has won 15 out of the last 18 Riders’ titles and 16 Manufacturers’ titles. In conclusion, Ducati customers are confident that they are purchasing high performance motorcycles. Harley Haley Davidson is exhibited as an American icon. Consumers view and associate Harley Davidson with riders, wear leather, have tattoos and with police officers, military dispatch riders and motorcycle gangs. Harley’s image is also viewed as something that is catered for and used by Caucasian American males in their 40-50 (Nolan pg.2-3).Harley Davidson’s riders feel a lifestyle connection...
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...they were first introduced to the riding public in 1998. With the development of the new Vision, a luxury touring bike, and the steady release of aggressively-styled cruisers, the company had continually innovated throughout its first decade in business. Yet Blackwell pondered the recurring questions facing Victory Motorcycles and Polaris. He wondered if the initial decision to diversify into heavyweight motorcycles was the right road to take. He realized Polaris took a big risk by moving into motorcycles and going up against the recognized powerhouses in the industry. He questioned if Victory could continue successfully competing against the Japanese giants, new energetic and innovative motorcycle companies, and their closest rival Harley-Davidson. Victory began making motorcycles in 1998. From 1998 to 2006 Polaris had invested over $100 million in motorcycle development and by 2006 the division was profitable for the first time. Victory sales were $113...
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...Write a 700- to 1,050-word paper in which you define marketing. Include in your paper your personal definition of marketing and definitions from two different sources. Based on these definitions, explain the importance of marketing in organizational success. Provide at least three examples from the business world to support your explanation. Properly cite sources used in the paper. Format your paper consistent with APA guideline DEFINITION OF MARKETING By know this .com Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer. Marketing is the process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals." American Marketing Association. My personal definition Marketing is a set of activities, which will satisfy the objectives of both the organizations its stakeholders including customer. Marketing is the process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individuals and organizational goals. (www.wikipedia.com) There are two major aspects of marketing which is the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). The four general sets of activities...
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...Your student ID _________________________________ Your Name _____________________________________ Your Signature __________________________________ THE UNIVERSITY OF NEW SOUTH WALES Australian School of Business School of Marketing MARK1012: Marketing Fundamentals Final Examination Session 1, 2011 Instructions: This examination paper consists of TWO sections, Section A and Section B; (TWELVE printed pages excluding this page). Printing is double sided, so check each page carefully. You have two [2] hours to complete this examination plus 10 mins reading time Read the questions carefully and answer all questions as instructed. Answer the TWO short essay questions in SECTION 1 in the space provided under each question. Questions must be answered in ink. Write all your MULTIPLE CHOICE answers (SECTION 2) in the Generalised Answer Sheet provided. Note that there are 50 (FIFTY) Multiple Choice Questions. Print your full name and Student number {z… } on the first page of each book and sign Use of UNSW approved calculators is permitted. No other material is to be taken into the examination room. This paper is marked out of 35 as indicated in your Course Outline (35% of the overall course grade) You may NOT retain this pap SECTION 1 (Short Essay Questions) Question No. 1.1 (Answer either A or B) 4 marks A What is the product life cycle [PLC] concept? Draw a typical PLC diagram for a ‘Style’ item in the box provided. B What is meant...
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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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