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Harley davidson’s Focus Strategy - BS sem 3

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This ppt is about the HArley Davidson's Focus Strategy.
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Harley davidson’s Focus Strategy - BS sem 3

  1. 1. HARLEY DAVIDSON’S FOCUS STRATEGY
  2. 2. BACKGROUND • Established by William Harley and Arthur Davidson • Heavy Customization and characteristic design > chopper style • Largest manufacturing company supported by 2000 dealers in 67 countries • Biggest supplier of bikes to army during WWll IMP. STRATEGY • Long term business Strategy “ Delivering Results through Focus” • Key element > ‘ Drive growth by focusing on the power of the brand • Four Basic pillars > a) Growth b) Continuous Improvement c) Leadership Development d) Sustainability
  3. 3. ACQUISITIONS TREND • 1993 > Buell Motorcycle Corp. (51% + 49%) • Retained position by creating a lifestyle and also gave immense riding experience. • 1999 > launched Customer Vehicle Operations (CVO) • Attended bike rallies • July 11,2008 > Italian company MV Augusta Group for $109 mn. • Tattooed the logo on their bodies • Became a high commodity and customers willing to pay any price to get one. Harley created a niche that no other motorcycle brand can ever fill.
  4. 4. OTHER STRATEGIES EMPLOYED • Shortened product development lead times and transformed operations to be flexible and customer led. • Value over price Strategy (Must have attitude) • 1981 > Introduced JIT • 1992 > Circle Based Org. Structure • 1999 > Customer Vehicle Operations • 2009 > Delivering Results through focus • 2010 > multigenerational & multi cultural marketing strategy Operating Revenue (2011): Shipments 2011 Increased from $ 4859336 to $ 5311713 National 152180 International 80937
  5. 5. WOMEN • Fast growing women’s bike market. DRAWBACKS • Aging Customer base • Faced competition from Japanese Motorbikes in 1970-1980. • Created a group ‘ The Ladies Of Harley ‘ to generate more interest amongst young women. • Dealers organize ‘Garage Parties’ where they can learn about heavy bikes and customization • Dropping sales in 2009 . • Internal competition from Victory Motorcycles & Big Dog Motorcycles • Average age 35 in 1987 reached to 45 in 2005 SALES : declined 22.1% to $803.3 mn which was $1.03 bn a yr ago Shipped 54236 bikes which was down by 27.4%
  6. 6. PORTER’S FIVE FORCE MODEL FORCES STRATEGIC SIGNIFICANCE Internal Rivalry From Victory & Big Dog Motorcycles in US Threat of new entrants They couldn’t stand against Harley in terms of the effect they pulled. Threat of substitute products They were the pioneers Bargaining power of buyers They were willing to pay anything for the bike Bargaining power of suppliers Supplier Diversity
  7. 7. THREATS STRENGTH • Aggressive marketing strategies • Competition • Customer Loyalty • Lower cost competitors or imports • Social Clubs and cause based marketing • Product substitution • Selling life style & high quality products • Baby boomers who are the potential buyers are aging • Use of Social Media WEAKNESS • Innovation OPPORTUNITY • Expanding demographics • Emerging markets - India & China and expansion abroad • • • • • • Not a strong global influence Very narrow product line across industries Product Price brand new. Limited product range Purchase frequency is low Refused to change on time
  8. 8. THANK YOU FOR PAYING ATTENTION

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