Brief Information of Company
Harley Davidson is one of the best motorcycle
producer in world. This company not only produce
motorcycle but also produce boat, t-shirt, bag, leather
Jacket ,helmet and kind accessories, etc. Thanks to
selection HD ,their customer’s life style obvious that
show their freedom.
History of Harley
1901–William S. Harley, age 21, completes a blueprint drawing of an engine
designed to fit into a bicycle.
1903 – William S. Harley & Arthur Davidson (Walter)
1909 – First V-twin powered bikes, it became most enduring icons of Harley
1917 – 1/3 rd of the bikes were sold to the U.S military, at last 20,000 HD
bikes were used in World War I (1918).
1920 – HD dealerships spread across 74 countries.
1930–Bill Davidson, Jr. wins the Jack Pine endurance contest with 997
points of 1,000.
1943–Harley-Davidson receives the first of its four Army-Navy "E" Awards for
excellence in wartime production.
1955–Harley-Davidson produces almost 60,000 WLA models during the war for
1987 – Entered into American & New York stock exchanges.
1998–A new assembly facility opens in Manaus, Brazil, the first operations outside of
2001 – Two big plants constructed in Milwaukee & Kansas cities.
2004–HD recorded its 19th
consecutive year of record earnings
2009– Harley-Davidson announces expansion into India.
2010–The XL Forty-Eight is introduced, recalling the raw, custom Sports of earlier
Harley is the only major American Manufacturer of heavy weight motor cycles.
Have more than 15,000 employees.
History of Harley
Values are the heart of HD business, they guide our
actions and serve as the framework for the decisions
and contributions our employees make at every level
of the Company.
Tell the Truth.Tell the Truth.
Be Fair.Be Fair.
Keep Your Promises.Keep Your Promises.
Respect the Individual.Respect the Individual.
Encourage Intellectual Curiosity.Encourage Intellectual Curiosity.
Product extensions Motor Cycles
Buell motor cycles:
wholly owned subsidiary of
Harley by 2003 (closed
• HD is the largest manufacturer of heavyweight
motorcycles in the world by market share, capturing half
the U.S. market and a third of the global market
• As a luxury good, HD competes primarily on design
and quality, rather than price, which keeps margins high;
gross margin in 2011 is projected to be approximately 34%
• Harley Davidson announces a 73.5% increase in
income in year-ago comparisons, totaling $119.3 million
for the first quarter of 2011 Increases in income were
driven by a 1.5% increase in revenue, totaling $1.22 billion
• Computer-based inventory control systems could play a role
in managing motorcycle inventories
• Technology also impacts design
• Modern motorcycles also are relatively free of oil leaks,
vibration, and are more comfortable than those of the past
• Communication across continents is easier and cheaper than
ever before because of computer-based inventory control
Social, cultural, demographic, and natural
• As aging couples with excess income are Harley Davidson’s target
market, the aging population growth and income growth are good
signs for the company
• The U.S. veteran population has increased by 1.1% , Veterans tend
to be motorcycle owners so sign of market segment growth for
• Motorcycles are mostly used during warmer months which are
generally March through August in the northern United States and
Canada so the motorcycles riders intend not to buy motorcycles until
they can ride them.
• The United States has the greatest income inequality among
developed nations ,This indicates a large (growing) potential market
size for Harley Davidson as it is the leader in the Motorcycle market
with about 50% market
• The changes in the lifestyle of the majority of youth population the
world-over has resulted in an enhanced business for HD
Political, governmental and
• The Environmental Protection Agency (EPA) regulates
automobile and motorcycle emissions
• Future revisions could negatively impact the motorcycle
industry. Steel prices increased 57% and aluminium increased
by 24%, so that the cost increases on to consumers, thus
raising the price of the product
• The environmental protection laws create on additional
pressure for companies
• Human resource legislation mostly in favour of the
employees also does have an impact on the profitability of the
• The internationalization of the business of the company is
concerned the moving of production facilities to those
• Its main competitors are Honda and Yamaha based on their
world-wide market share
• Harley’s competitors are more diversified, they are less
vulnerable to industry changes
• Honda and Yamaha also offer products that sell well in the
international markets compared to Harley
• Harley products are more expensive than its competitors, but
are known for service and saleability
• Touring bikes have increased in popularity with each year.
Victory, Honda, Suzuki, and Harley have expanded their
touring line of motorcycles to cater to the aging market.
Harley offers eight variations of the touring motorcycle
• To determine HD’s strengths and weaknesses, an internal
assessment is required
• Harley only has 7.7% of European market share (the second
largest motorcycle market in the world), and 25.3%of the
• Harley-Davidson’s strengths are in the U.S. market, as 80%
of Harley’s net revenue comes from U.S. sales
• Harley was viewed as sub-par when compared to British
• Harley has a reputation for style and quality
• Harley-Davidson also introduced water-cooled engines, fuel
injection, and catalytic converters to improve exhaust
• Harley’s strength in this area is largely due to its marketing
abilities in the U.S. market
• Harley customers are extremely loyal to their brand and 90%
of Harley owners intend to purchase another Harley
• Management information systems could be used to more
effectively manage inventory at Harley .This is currently one
of Harley-Davidson’s few internal weaknesses
PORTER Five Forces Analysis
Forces Strategic Significance
Internal Rivalry LOW-MODERATE
Threat of New Entrants LOW
Threat of Substitutes
Bargaining Power of Buyers LOW
Bargaining Power of
Market share and financial analysis
U.S. dealer Network
Increasing number of
U.S. industry growth
Asian industry growth
Declining European growth
Dealer inventory system
STAR PROBLEM CHILDREN
1.0 0.50 0.0
Relative Market Share
Harley-Davidson RELATIVE MARKET SHARE 48%
GROWTH RATE 13.029
Conclusion • Harley- Davidson have to change American
culture and helped the future of motorized
• Must implement latest technology &
• Loyal customers are not sufficient for
company to survive.
• “it’’s a journey but not a destination”