Harley-Davidson was founded in 1903 and is the largest motorcycle manufacturer in the world. However, its core customer base of men over 35 is shrinking, so it must pursue growth opportunities abroad and attract new demographics. The document outlines Harley-Davidson's strategy, strengths, challenges from foreign competition, and alternatives like expanding into foreign markets, lowering costs, and targeting women and younger riders to remain competitive.

1. Emily Hernandez

2. Building a Legend

3. The Company
● Founded in 1903 in Milwaukee, WI by
William Harley and Arthur Davidson
● Largest motorcycle manufacturer in
the world
● Manufactures and sells heavyweight
custom and touring motorcycles, a
line of motorcycle parts, accessories,
general merchandise and related
services
● One of the most familiar and loved
brands in the United States

4. Business Strategy Framework
● “Harley-Davidson's purpose of fulfilling dreams of personal freedom is the foundation
for the Company's core strategies, which include:
○ Delivering high-demand, profitable products and premium retail experiences
○ Strengthening Harley-Davidson through agility and responsiveness to be a leader
in the global marketplace
○ Extending the Harley-Davidson brand's reach beyond core customers and
markets
○ Cultivating great talent, leadership and culture to enable a sustainable future”

5. Customer Value
Proposition
Perceived benefits to customers:
● Functional
● Emotional
● Social
● Self-Expressive
"Harley-Davidson stands for independence, freedom,
individuality, expressing one's self, adventure on the
open road, and experiencing life to its fullest."-Joanne
Bischmann, VP of Marketing for Harley-Davidson

6. Harley Owners Group (HOG)
● Sponsored brand community created in 1983
● 1 million members
● Serves to promote product, and lifestyle
○ Sponsors many motorcycle events, including rallies and rides for Harley
Davidson motorcycle enthusiasts

7. Core
Competencies
● Brand image/loyalty
● Differentiation strategy
● Customization or aftermarket
● Wide distribution network
● Skillful workforce
● Efficient engine technology
● Promoting lifestyle through HOG

8. Problem: Shrinking market share due to...
Foreign competition
● Japanese
motorcycles (Honda
and Suzuki)
● Stylish bikes
● Cost less to
manufacture
● Discounting
Ut enim ad minim veniam,
quis nostrud
High costs
● Heavily unionized
workforce
● Relying on
single/limited
suppliers
Myopic Target Segment
● Core customers are
men over the age of
35
● Baby boomers
segment shrinking
● No new customers
to replace current
customers

9. Alternatives
Foreign Market Penetration New Market SegmentsLower Costs

10. 1: Penetrate Foreign Markets
● Stop relying on U.S market
● Form strategic alliances and joint
ventures to enable entry into
foreign markets
● Multidomestic strategy- tailor
product extensions accordingly
to meet tastes of geographic
market

11. 2: Lower Costs
● Knowledge of local conditions, sharing of costs, resources, and assets
● Renegotiate delivery costs of components used to manufacture the motorcycle
● Consolidate factories into geographically appropriate areas to reduce shipping
costs to dealerships
● Negotiating concessions from the union to reduce man-hour cost
● Analyze production line for maximum efficiency

12. 3: New Market Segments- Women
● Develop products and services
for females domestically and
internationally
● 28% increase in the last 5 years
● Lower CC models
● Lower seat height
● Lower center of gravity
● Optional automatic transmission
● Campaign “Don’t just go along for
the ride”

13. 3: New Market Segments-Younger Customers
● Recruit younger customers to build
lifetime customer loyalty
● Make new motorcycles more
affordable with lower-interest
financing
● Offer greater customization
● Translate campaigns into the Digital
Age

14. Conclusions
In order to remain a leader in the industry, Harley Davidson should:
● Be more responsive to market trends
● Focus on collaboration and strong supplier relationships to deliver cost and
quality improvement in the long-term.
● Sell products and promote the experience of motorcycling to both core
customers and outreach customers such as women and young adults.

15. Discussion Questions
● Should Harley Davidson lower its prices to appeal to younger
markets? Will this affect their image?
● Do you see any limitations to the viability and growth of HD in the
future?