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Harley VS Honda presentation


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Harley VS Honda Strategic Decisions

Published in: Automotive
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Harley VS Honda presentation

  1. 1. VS. Course : Business Strategy Professor: Alexandros Papalexandris     Live free or die tryin' The Easy Riders: Andreou Anastasios Athanasiou Ioannis Kakavoulis Anastasios Kallis Nikolaos Mehta Arjun
  2. 2. Introduction
  3. 3. Video
  4. 4. Harley-Davidson from birth to maturity • By 1953 Harley is #1 American manufacturer of motorcycles. • In 1959, Honda entered the US market => rebirth of motorcycling in the US. • Japanese producers soon moved up-market in the heavyweight sector. • In 1969, Harley-Davidson was acquired by AMF. • End of 1970s Honda became the market leader in the heavyweight motorcycles in the US.
  5. 5. Harley-Davidson rebirth In 1981, the then CEO , organized a leverage buyout. ● The new management team brought a revolution. ● US government imposed 49% temporary tariff. ● The 1990s saw year-on-year uninterrupted growth in the heavyweight motorcycle market and a continued increase in Harley’s market share. ●
  6. 6. The Brand & The Product ● Harley Experience(individuality, freedom & adventure). ● HOG(1983) ● Harley VS. Competitors ● Personalization(engine types, gas tanks, frames, etc.).
  7. 7. Distribution ● 620 U.S Dealerships. ● Dealer Development Program ● Demand greater than Supply
  8. 8. International Expansion ● Brand Image & European market. ● Buell(1998) ● HOG's and Dealer's Development Program.
  9. 9. People & Management ● Management & Employee Relationship ● Working Policies ● Organizational Structure
  10. 10. PORTER’S 5 FORCES MODEL FOR HARLEY-DAVIDSON Threat of new entrants(Low) Power of customers(Low) Very high entry barrier § Requires high capital investment and is a mature industry § § Low economies of scale § Since product is differentiated customer tends not to be price sensitive Rivarly among existing firms § § Harley-Davidson-Yamaha-SuzukiHonda Harley’s help from ITC and government allowed them to catch up to their competitors and gain some ground in market share Power of suppliers(High) § § Steel, basic electric equipment and shipping of the final motorcycles. Harley has ’preferred suppliers’ and there is a trust between them because suppliers generate profit Threat of substitutes § Cars, sport bikes, and scooter bikes. BUT Harley is a luxury vehicle, so there are few close substituters for this heavyweight motorcycle
  11. 11. Founded in 1948 by Soichiro Honda ● In 1949 Takeo Fujisawa became partner. ● Fujisawa brought along his financial expertise and the marketing strengths. ● In 1951 Honda unveiled a breakthrough design that doubled horsepower over competitive 4-stroke engines. ● With this innovation Honda was off and putting and by 1952 demand was brisk. ●
  12. 12. In 1952 first motorcycle factory ppurchased. ● In 1958 the Honda 50cc Supercub was introduced. ● Overnight Honda was overwhelmed with Supercub orders. In 1959 Honda had a 23% market share in Japan ●
  13. 13. Honda enters U.S market ● Honda is the first Japanese company to begin the invasion. ● No strategy. Just to see what they could sell (What a strategy!!!). ● ● The start-up inventory with 25% of each of its four products: The 50cc Supercub. The 125cc. The 250cc The 305cc . Los Angeles becomes the base of operations in the start.
  14. 14. ● In 1960 , the first machines had problems. ● Honda redesigned the motor for the US market.
  15. 15. By 1964, 1 of 2 motorcycles in the US sold was a Honda. ● Early 1970's Japanese manufactures accounted for more than 85% of U.S motorcycle sales. ● At the end of 1970's, Honda dethroned Harley from market leader in heavyweight motorcycles in United States ●
  16. 16. S • High and powerful research and development R & D  • Innovation  • Best market share leadership  • Strong and powerful brand equity  • Different and unique products   • Popularity is termed as one of the best strength of the which results in betterment for the company O W Cost structure of the Honda is high as compare to other automobile manufacturers  • Honda focus more on international deposits as compare to domestic deposits   • Honda products are termed as inoffensive in terms of style and design  • In truck line, the Honda Company is not offering strong products and proposals • Honda has the best opportunity to use its R & D in producing cars according to the needs and demands of their customer. This is only possible because of the increase is in demand for less pollution cars.  • Various models there are the which caters the lower segment  • Fuel efficiency is now a days termed as one of the best opportunity the which cans results in the best productivity for the company  • Alliances are the best opportunities for the Honda Company  • Honda cans increase of its production by focusing on sales and research  T One of the major threat is the economic slowdown. • All the external changes for instance taxes, politics as well as government are the major threats for the Honda Company  • Another threat is the lower cost competitors  • Price war is also consider as an Important threat for this company  • Oil prices are contributing a lot towards the loss of the Honda company  • Second movers are the major threat for the Honda company  • Substitute products are the major threats for the Honda company 
  17. 17. Thank you .!.