1. Briefly 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.
3. History of HD 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 Davidson history.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.
4. History of HD1943–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 military use. 1987 – Entered into American & New York stock exchanges.1998–A new assembly facility opens in Manaus, Brazil, the first operations outside of the U.S. 2001 – Two big plants constructed in Milwaukee & Kansas cities.
5. History of HD 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 Sporters of earlier days.Harley is the only major American Manufacturer of heavy weight motor cycles. Have more than 15,000 employees.
7. Values Values are the heart of HD business, they guide ouractions and serve as the framework for the decisions andcontributions our employees make at every level of theCompany.
8. Product extensions Motor Cycles Bike accessories Buell motor cycles: wholly owned subsidiary of Harley by 2003 (closed now)
10. Harley - Davidson presents two new models thisyear – one for men and one for women ...
11. This is Harley for men
12. This is Harley for women
13. Mission We fulfill dreams through the experience of motorcycling,by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments.
14. PROPOSED MISSION “Constantly renewing ourselves and offer our customers the best motorcycle experience without compromising the quality.To be branded as the best motorcycle available in the world.”
15. Visio n HD, is an action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, governments and society). HD believes the key tosuccess is to balance stakeholders’ interests through the
16. PROPOSED VISION “Always be competitive and continuously improving ourcustomer satisfaction, increasing dynamic, diverse and globalmarket” The best quality motorcycle, motorcycle productsand financial services will be provided world wide is thecommitment of Harley Davidson. The total team effort ofHarley Davidson employees is devoted to full filling dreamsof customers and we believe there is not a motorcycle ridingexperience like Harley Davidson.
17. INTENSIVE STRATEGIESMarket PenetrationProduct DevelopmentMarket Development
18. Market Penetration• Get some more market share from the existing market(U.S, U.K, and Japan)• Use more marketing techniques like advertising• HD has a good brand name so it’s easy for them to eat up the competitor market share• Competition is high in this segment mostly in U.S so good choice market penetration• Expand the HOG (Harley Owners Group) to Asian countries• If the company can provide the customer satisfaction that they are providing to the U.S customers to the Asian customers they can increase the sales
19. Product Development• Younger generation and female are now coming to this segment so expand the motor cycle segments to younger generation and females.• In Europe they can increase or expand the Buell’s market share by introducing new motorcycles.
20. Market Development• Harley-Davidson can bring in their vehicle to Asian countries (India, China), because these countries have a high population and the market potential is also high.• The cost to bring in the old vehicles (old product) to India is so much difficult: - There are so much environmental laws -Taxes are problems -Levis are high in India• So starting new plant in India can solve this problem. Negotiations with the Government can solve these problems
21. CURRENT INTEGRATION STRATEGIES• Vertical Integration• Horizontal Diversification
22. Vertical Integration• HD uses both backward and forward integration• More than 750 suppliers of g&s are used in the design and manufacture of motorcycles, parts and accessories• The control of inputs is a necessary part of just-in-time manufacturing• HD has been backward integrating to maintain control over the quality of suppliers• HD owns most of its distributors• Distributing completed motorcycles throughout the world• HD is responsible for the delivery of parts and accessories
23. Horizontal Diversification• HD has acquired Buell Motorcycles and Eaglemark Financial Services, in order to provide new product lines for their customers• Buell was acquired in order to be able to provide customers with a V-twin powered Sport motorcycle• This type of motorcycle has become increasingly popular with the younger and European riders• Eaglemark provides motorcycle financing, motorcycle casualty insurance and extended service contracts for HD and Buell motorcycles• They also issue the HD Chrome VISA Card, allowing riders and customers to show their brand loyalty
24. Yasemin Şirin You might be a biker if… You can’t remember your You pull your bike into the motel room and use a bath towel to wipe You take your You carry ride names of your before they can cw You wave a abikers your when bike the your wall kids for at picture or bike you’re in your kids’ on even birthdays, dishwash in You have put motorcycle parts in but you can remember that Harley-Davidson made the Knucklehead, Panhead, Shovelhead Evolution, and Twin Cam 88 & 96
25. ORGANIZATIONAL CHART
26. MANAGEMENT• Excellent Corporate Governance has been a long standing business practice at HD, because it makes good business sense• The HD Management and Board of Directors is composed of accomplished leaders from a range of industries who meet regularly to review Company objectives and plan for future growth• These individuals draw on their diverse backgrounds and experiences• They are proud HD enthusiasts, and they work to ensure that the decisions made by HD promote fairness, financial transparency and accountability to all our shareholders
28. Economic Forces HD is the largest manufacturer of heavyweightmotorcycles in the world by market share, capturing halfthe U.S. market and a third of the global market As a luxury good, HD competes primarily on design andquality, rather than price, which keeps margins high; grossmargin in 2011 is projected to be approximately 34% Harley Davidson announces a 73.5% increase in incomein year-ago comparisons, totaling $119.3 million for thefirst quarter of 2011 Increases in income were driven by a1.5% increase in revenue, totaling $1.22 billion for 2011
29. Technological Forces• 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 systems
30. Social, cultural, demographic, and natural environment forces• 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 Harley• 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
31. Political, governmental and legal forces• The Environmental Protection Agency (EPA) regulates automobile and motorcycle emissions• Future revisions could negatively impact the motorcycle industry. Steel prices increased 57% and aluminum 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 company• The internationalization of the business of the company is concerned the moving of production facilities to those locations
32. Competitive Forces• 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
33. INTERNAL FORCES• 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 Asia/Pacific region• 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 motorcycles• Harley has a reputation for style and quality
34. INTERNAL FORCES(con’t)• Harley-Davidson also introduced water-cooled engines, fuel injection, and catalytic converters to improve exhaust emissions• 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
35. MICHEAL PORTER ANALYSIS Five Forces Analysis Forces Strategic Significance Internal Rivalry LOW-MODERATE Threat of New Entrants LOW Threat of Substitutes LOW-MODERATE ProductsBargaining Power of Buyers LOW Bargaining Power of HIGH Supplier
36. Market share and financial analysis BALANCE SHEET
37. HD CASH FLOW
38. MARKET SHARE• Competition in the motorcycle industry consists of only a handful of producers worldwide.• The Japanese producers Honda, Yamaha, Kawasaki, and Suzuki are producing a full line of motorcycles ranging from scooters to heavyweights, and together control the largest share of the market• Motorcycles are sold internationally, 3 main geographic markets North America, Asia, and Europe• The largest is the North American Market (USA and Canada account for about 60% of this market) accounting for 60% of worldwide motorcycle sales
39. MARKET SHARE (con’t)• Most Asians consider motorcycles as a basic means of transportation.• Major target areas include China, Korea, Taiwan and Vietnam.• The European Market is another market with great potentials since Europeans have a higher disposable income and enjoy a higher standard of living• Eastern Europe is not offering a good deal mainly because of its unstable political and economic environment
40. The following table details the market share by region: North American Market Share Harley-Davidson 46.40% Honda 20.20% Suzuki 9.80% Yamaha 9.30% Kawasaki 7.10% BMW 2.50% Other 4.60%
41. European Market Asia/Pacific Market Share Share• Honda 21.00% • Harley-Davidson 21.30%• Yamaha 17.70% • Honda 19.10%• BMW 15.10% • Kawasaki 15.80%• Suzuki 14.80% • Yamaha 13.60%• Kawasaki 8.50% • Suzuki 10.10%• Harley-Davidson 6.60% • BMW 7.30%• Ducati 5.70% • Ducati 6.90%• Triumph 3.50% . Other 5.90%• Other 7.00%
42. World Wide Revenue
43. 2011 Worldwide Retail Sales of Harley-Davidson Motorcycle
44. GROWTH SALES For the first time in 17 quarters, Harleyreported selling more motorcycles than in theyear-ago quarter. Growth in the U.S was themost impressive, while international growthcontributed too. Thanks to relatively surgingsales in the U.S., the mix of domestic tointernational sales has dropped from 42% lastyear to just 36% now.
45. Human ResourceIncidents that may involvea potential conflict ofinterestDisclosure of any waivers ofany conflict of interestRegular reports to theBoard.Reassess annually theHuman ResourcesCommittee performanceEstablish subcommitteesand delegate authority to
46. Human Resource Committee Duties and Responsibilities is to review the; Total compensation Career development and management succession plans Make recommendations regarding the selection and retention of officers
47. Hasan Celal Kök
48. Sturgis is a city in Meade County, South Dakota,United States. The population was 6,627 as of the 2010 census.It is more popular than some city in the USA
49. • The Sturgis Rally is a motorcycle rally held annually in Sturgis, South Dakota each first full week of August It was founded in 1938 by the Jackpine Gypsies Motorcycle Club
50. The first year in Sturgis, there were 19participants But in recent years; Attendance was estimatedat, 614,951 in 2004, and 625,250 in 2005
51. • About 50.000 people coming to this city for trade.
52. • It is the biggest motorcycle rally in the world• A lot of people comes from thousands of miles of distance• For example: Some people comes from New york by Harley Davidson motor.
53. • The distance between Sturgis and New York 1744 miles and Florida 2030 miles.• Distance isn’t important for participator
54. The others of racing place• Sturgis• Florida• Shipley• Milwauke (wisconsin)• Las vegas
55. Mümine ÇinStrategic matrix
56. STAGE 1 THE INPUT STAGEEXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR (EFE) MARTIX (CPM) EVALUATION (IFE) STAGE 2 THE MATCHING STAGESTRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRANDOPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGYTHREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIXMATRIX) EVALUATIN (SPACE MARTIX) STAGE 3 THE DECISION STAGE QUANTITATIVE STRATEGIC PLANNING MATRIX
57. STAGE 1 THE INPUT STAGEEXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR (EFE) MARTIX (CPM) EVALUATION (IFE) STAGE 2 THE MATCHING STAGESTRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRANDOPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGYTHREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIXMATRIX) EVALUATIN (SPACE MARTIX) STAGE 3 THE DECISION STAGE QUANTITATIVE STRATEGIC PLANNING MATRIX
60. INTERNAL ANAYLSIS FACTOR (IFE) MATRIXSTRENGHT WEIGHT RATING WEIGHT SCORE1-Strong brand name 0.15 4 0.602-ıt has strong market department 0.15 3 0.453-Strong relations built on trust and respect 0.10 3 0.30with supliers and dealers4-It is only major American motorcycle 0.10 3 0.30manufactures5-The standart and performance segments 0.10 4 0.40of Harley Davidson make up 70 % of theEuropean heavy weight motorcycle marketWEAKNESS WEIGHT RATING WEIGHT SCORE1. Harley davidson dosn’t emphasize price 0.10 2 0.50 in it’s product1. Loss of benefits 0.10 3 0.601. Lack of opportunity for advancement 0.10 3 0.301. Facing engoing capacity constraints 0.05 4 0.201. Difficult to attract and retain talented 0.05 4 0.40 employee TOTAL 1.00 4.05
61. STAGE 1 THE INPUT STAGEEXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR (EFE) MARTIX (CPM) EVALUATION (IFE) STAGE 2 THE MATCHING STAGESTRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRANDOPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGYTHREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIXMATRIX) EVALUATIN (SPACE MARTIX) STAGE 3 THE DECISION STAGE QUANTITATIVE STRATEGIC PLANNING MATRIX
62. Strong marketing Product Quality Brand Recognition Trademark Licensing n gt hsS tre Supplier relationship Designer Store Service Distribution Channel Wow Biking experience!
63. Weakness Price factor Brain drain Reliant on few suppliers Market share Ongoing capacityconstraints
64. ThreatsHarleys ongoing capacityrestraintsLoss in domestic market share inrecent yearsCompetitors of Harley DavidsonEnvironmental protection lawsHigher production CostsRecession
65. The international market is now larger than the U. S. Customers value quality parts. uni ties ort Women and younger riders areOp p increasing becoming interested in bikes. Industry registrations of heavyweight motorcycles are increasing.
66. SWOT Analysis S-O Strategies • Expand production into Europe and Asia • Expand marketing to female riders • S-T Strategies • Increase strong brand name W-O Strategies ●Pursue foreign markets more agressively • W-T Strategies • Improve employee relationships
67. SWOT MATRIX WEAKNESSES STRENGTHS Dealer inventory systemCustomer retention International marketFinancial position shareProduct selection Expensive productU.S.market share Product selectionU.S. dealer Network International dealer THREATS OPPORTUNITIES Union relationsIncreasing number of Aging U.S.populationriders CompetitorU.S. industry growth diversificationAging population Declining EuropeanAsian industry growth growth Availability substitus
68. SPACE Matrix RatingsFinancial Strength(FS) +6Leverage +4Liquidity +3Return on invesment +4Working capitalIndustry Strength(IS) +5Growth potential +4Profit potential +4Capacity utilization +5Ease of entryEnvironmental Stability(ES) -4Competitive pressures -2Risk -5Price range of competing products -2Demand fluctuationsCompetitive Advantage(CA) -2Market share -1Loyalty -1Product life cycle -1
69. SPACE MATRIX Conservative FS Aggressive +6 +5 +4 +3 +2 X +1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 CA IS -1 -2 -3 -4 -5 Competitive Defensive -6 ES
70. BCG Matrix Relative Market Share 1.0 0.50 0.0 +30 STAR PROBLEM CHILDRENIndustryGrowthRate COW DOG -30 Harley-Davidson RELATIVE MARKET SHARE 48% GROWTH RATE 13.029
71. INTERNAL-EXTERNAL (IE) MATRIXHarley-Davidson U.S. MARKET SHARE 49%Harley-Davidson EUROPEAN MARKET SHARE 07%Harley-Davidson ASIAN MARKET SHARE 22% 4 4 strong 3 avarege 2 Weak 1 H high H.D US Market EFE Total Weighted Score 49% 3 H.D ASIAN medium Market 22% 2 H.D EUROPEAN Market Low 7% 1
72. GRAND STRATEGY MATRIX Rapid Market Growth QUADRANT:2 QUADRANT :1Weak StrongCompetitive CompetitivePosition QUADRANT:3 QUADRANT:4 Position Slow Market Growth
73. STAGE 1 THE INPUT STAGEEXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR (EFE) MARTIX (CPM) EVALUATION (IFE) STAGE 2 THE MATCHING STAGESTRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRANDOPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGYTHREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIXMATRIX) EVALUATIN (SPACE MARTIX) STAGE 3 THE DECISION STAGE QUANTITATIVE STRATEGIC PLANNING MATRIX
74. QUANTITATIVE STRATEGIC MATRIX (QSPM) E.P. EUROPE E.P. ASIASTRENGHTS WEIGHT AS TAS AS TAS Net income of 2010 was $146.545,it is very big rate to compare with the 0.0225 3 0.0225 previous year 2009 0.075 3The standard and performance segments of 3 0.135 2 0.09Harley Davidson make up70% of the EUROPEAN heavy weigtedmotorcycle market 0.045Harley Davidson operates in two segments: 0.05 3 0.0375 Harley Davidson motorcyles & related products and HDFS(Harley Davidson 4 Financial Service) 0.0125Harley Davidson is the only majör American heavyweight motorcyle manuf 0.05 4 0.2 4 0.2Strong brand name 0.075 4 0.3 2 0.15WEAKNESS 0High price 0.075 2 0.15 2 0.15Harley Daviidson has problems in gaining more market share in someEuropean countries(That’s one of the main markets for heavyweight 3 0.9 3 0.9motorcyles outside U.S). 0.03They didn’t yet start its sales in India one of the biggest market s 0.05 3 0.15 3 0.15Required production is not met ,analysing the future of heavyweightmotorcyle market 4 0.1 4 0.1 0.025OPPORTUNİTES 0The European demand for Harley Davidson is the highest international marketand represents the single largest motorcyle market in the World 4 0.3 2 0.15 0.075The international heavy weight market is growing and is now larger than theU.S. heavyweight market 0.075 4 0.3 3 0.225Women and younger riders are increasing becoming intrested in bikes 0.05 3 0.15 4 0.2Market share increasing in Europe and Asia for the last two years 0.025 3 0.075 4 0.1Increasing demand U.S market for bikes 0.1 2 0.2 3 0.3Customer value quality parts 0.125 1 0.0125 2 0.025THREATHarleys ongoing capacity restraints caused a shortage supply and a loss indomestic market share in recent years 0.75 4 0.3 3 0.225The European Union’S motorcyles noise standars are more stringent than thoseof Environmental Protection Agencies in the U.S increased enviromental stand 0.012 3 0.0375 2 0.025 5
75. Conclusion• Harley- Davidson have to change American culture and helped the future of motorized vehicles.• Must implement latest technology & facilities.• Loyal customers are not sufficient for company to survive.• “it’’s a journey but not a destination”
76. PossibleStrategies into Foreign Markets Expand • Asia • Europe Product Development • Expand Motorcycle line for younger market • Buell expansion Concentric Diversification • Other recreational vehicles • Expand HOG and BRAG owner member g
77. PossibleStrategies Made new alliances with some local b companies to produce low cost • India Increasıng dıversity programing • Tour • museum Increasing advertising