Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. MACRO – Socio-Cultural <ul><li>Europe </li></ul><ul><ul><li>The population growth in Europe has been increasing since 1999 through 2002 </li></ul></ul>
  2. 2. MACRO – Socio-Cultural <ul><li>The market for motorcycles or two-wheeled vehicles has stabilized just under 25,000 after a spike in 1997. </li></ul>
  3. 3. MACRO – Socio-Cultural <ul><li>Registration of vehicles increased for passenger vehicles, but a decrease for two wheelers. </li></ul>
  4. 4. MACRO – Socio-Cultural <ul><li>Japan </li></ul><ul><ul><li>The population has been steadily increasing for the past 10 years, along with the density and also the mean age of the population. </li></ul></ul><ul><ul><li>Currently the mean age of the population is 41.43 years </li></ul></ul>
  5. 5. MACRO – Socio-Cultural <ul><li>The population aged 20-24 has been steadily decreasing since 1996 </li></ul><ul><li>The population aged 35-39 has been steadily increasing since 1997 </li></ul>
  6. 6. MACRO – Socio-Cultural <ul><li>High population density in Japan of 349.62 people per square km </li></ul><ul><li>A huge surge of car ownership of 64% in just over twenty years </li></ul><ul><li>Japan has an extremely strained road network. </li></ul>
  7. 7. MACRO – Socio-Cultural <ul><li>United States </li></ul><ul><ul><li>There was significant population growth in the warmer climate states such as California, Florida, Texas and Nevada. </li></ul></ul>
  8. 8. MACRO – Socio-Cultural <ul><li>Currently there are 5.5 million motorcycle owners in the U.S. but only 3.9 million are registered </li></ul>
  9. 9. MACRO – Political-Legal <ul><li>Europe </li></ul><ul><ul><li>Transportation regulations are set out by governments and agencies of the individual countries within the European Union </li></ul></ul><ul><ul><li>Legislation has been set forth to control emissions and braking systems. </li></ul></ul><ul><ul><li>Other laws regulate the use of motorcycles such as licensing, safety regulations, and equipment requirements. </li></ul></ul>
  10. 10. MACRO – Political / Legal <ul><li>Japan </li></ul><ul><ul><li>There is currently a new proposal for emission standards for Japan </li></ul></ul><ul><ul><li>The legal minimum age to drive a lightweight is 16 and 18 for heavyweights </li></ul></ul><ul><ul><li>Japan has responded to many American requests regarding laws for motorcycles and motorcycle riders. </li></ul></ul>
  11. 11. MACRO – Political/Legal <ul><li>United States </li></ul><ul><ul><li>All 50 states require motorcycle riders to obtain a special license to operate a motorcycle </li></ul></ul><ul><ul><li>Currently under the Motorcycle Helmet Act, states have different stipulations regarding mandatory use of helmets </li></ul></ul>
  12. 12. Industry Overview <ul><li>The primary NAICS code is 336991 </li></ul><ul><ul><li>Motorcycle & arts Manufacturing. </li></ul></ul><ul><li>The annual industry sales were reportedly worth $19.2 Billion in 2003 </li></ul><ul><ul><li>12.7% increase from 2002 revenue totals. </li></ul></ul><ul><li>The annual growth rate of the motorcycle industry over the span of three years is 4.11%. </li></ul>
  13. 13. Industry Overview <ul><li>The 2003 industry return rates are above average when compared to other industries and are listed as follows : </li></ul><ul><ul><li>Return on Assets (ROA) is 10.2%, </li></ul></ul><ul><ul><li>Return on Equity (ROE) is 22.7% </li></ul></ul><ul><ul><li>Return on Investment (ROI) is 37.9%. </li></ul></ul>
  14. 14. Industry Overview <ul><li>There are 17,151 people employed in the U.S. motorcycle industry alone. </li></ul><ul><li>Currently under the NAICS code 336991 there are 22 firms that operate solely in the motorcycle and parts manufacturing industry. </li></ul><ul><li>Some examples include BMW, Suzuki, Honda and Polaris Industries. </li></ul>
  15. 15. INDUSTRY – Strategic Group Map Rough & Tough Perceived Image Sophisticated Low High Quality of Product Kawasaki Harley-Davidson Honda BMW Yamaha Suzuki
  16. 16. Value Chain Analysis <ul><li>Corporate HQ/ Executive </li></ul><ul><ul><li>3 Year sales increase </li></ul></ul><ul><ul><li>28 % U.S,15 % Europe, 17% Japan. </li></ul></ul>
  17. 17. Corporate HQ/ Executive <ul><li>The return ratio’s are significantly higher than the competition’s </li></ul>
  18. 18. Market Capitalization <ul><li>The market is confident that Harley-Davidson is going to remain a long term market leader. </li></ul>
  19. 19. Corporate Strategy Vertical Integration <ul><li>Harley-Davidson is a mid-stream company with its main focus on manufacturing motorcycles. </li></ul><ul><li>It would not be beneficial for Harley-Davidson to backwards integrate. </li></ul><ul><li>It would not be beneficial for Harley-Davidson to forward integrate </li></ul>
  20. 20. Vertical Integration <ul><li>Potential Problems and Recommendations </li></ul><ul><li>The dealer/Supplier relationships is the foundation of its successful supply chain management </li></ul><ul><li>Harley-Davidson should continue to build positive relationships to retain the competitive advantage </li></ul>
  21. 21. Corporate Strategy Horizontal Diversification <ul><li>Harley-Davidson is not horizontally diversified </li></ul><ul><li>Harley only has one NAICS code 336991 </li></ul><ul><li>The industry of manufacturing motorcycles, bicycles and parts. </li></ul>
  22. 22. Horizontal Diversification <ul><li>Harley-Davidson products and services include: </li></ul><ul><ul><li>Harley Gear –clothing </li></ul></ul><ul><ul><li>Harley accessories </li></ul></ul><ul><ul><li>Harley-Davidson Financial Services </li></ul></ul><ul><li>The merchandise and financial services act as catalysts to the sale of Harley-Davidson motorcycles and to the image of the Harley way of life. </li></ul>
  23. 23. Horizontal Diversification <ul><li>Potential Problems and Recommendations </li></ul><ul><ul><li>Harley-Davidson is dominating the motorcycle manufacturing industry. </li></ul></ul><ul><ul><li>Harley-Davidson has such a loyal customer base, strong brand name and image </li></ul></ul><ul><ul><li>it would be detrimental if they diversify into markets unrelated to motorcycles. </li></ul></ul>
  24. 24. Corporate Strategy Geographic Diversification <ul><li>Harley-Davidson currently operates in three main global regions: </li></ul><ul><ul><li>North America, </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>Asia. </li></ul></ul><ul><li>Harley-Davidson operates under a global strategy </li></ul><ul><li>It offers standardized products across global markets </li></ul><ul><li>Competitive strategy is centralized </li></ul>
  25. 25. Geographic Diversification <ul><li>International revenue accounted for approximately 18%, of net revenue </li></ul><ul><li>Harley-Davidson 2003 Market Share </li></ul><ul><ul><li>50% United States </li></ul></ul><ul><ul><li>8% Europe </li></ul></ul><ul><ul><li>26% Asia </li></ul></ul><ul><li>Harley-Davidson outpaced the industry in sales in each region in 2003 </li></ul><ul><li>It is recommended that Harley-Davidson remains in the European, Japanese markets </li></ul>
  26. 26. Geographic Diversification <ul><li>Potential Problems and Recommendations </li></ul><ul><li>The company has expressed interest in other markets </li></ul><ul><ul><li>South America, Africa and Southeast Asia. </li></ul></ul><ul><li>Recommend that Harley-Davidson enters the Chinese market through a strategic alliance with Zongshen Motorcycle Group. </li></ul><ul><li>Not recommended entry into South American or African markets at this time </li></ul>