MODULE 2
HARLEY
DAVIDSON
Group D10
Gabriela D’cunha –
14052
Genevieve Nora Dias –
14053
Jovita Francy Dcosta –
14056
Manisha Kumari – 14058
Mario Allen Clement –
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CONTENTS
Harley Davidson
History
Mission/Vision Statement and Values
Revenue Distribution
Macro Analysis
Objectives vs. Strategies adopted
External Analysis
Internal Analysis
SWOT Analysis
Recommendations
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HARLEY DAVIDSON
 Milwaukee, Wisconsin - first decade of the 1903.
 William Harley & Arthur Davidson
 Heavyweight custom and touring motorcycles.
 Gained market during 1st and 2nd world war.
 Automobile and Cycle Trade Journal – First paper
Advertisement.
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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HISTORY
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MISSION/VISION
STATEMENT AND VALUES
Mission Statement:
"We fulfill dreams through
the experience of
motorcycling, by providing
to motorcyclists and to the
general public an
expanding line of
motorcycles and branded
products and services in
selected market segments."
Tell the truth - Be fair - Keep promises - Respect the
individual - Encourage intellectual curiosity
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REVENUE
DISTRIBUTION
USA,
67.50
%
Europe
,
16.70
%
Japan,
5.60%
Canad
a,
3.80%
Austral
ia,
3.30%
Rest of
the
world,
3.10%
Motorc
ycles
54%
Parts
13%
Mercha
ndise
4%
Other
29%
Product line Breakup(in mi
Region wise Breakup(in millions)
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19
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Sales($ Million)
Sales($ Million)
MACRO ANALYSIS
Political
 As an American Icon
 Opportunities in
developing
economies(India, China)
Economic
 Global recession
 Increase in price of raw
material
Social
 Diverse lifestyle (Clubs,
garage academies)
 Married male around 35-45
Legal
 Helmets being forced across
the globe
 Licensing of vehicles with
added taxes
Environmental
 Environmental laws different
from country to country
 Manufacturing organization
with vehicles.
Technological
 Efficient motorcycles
 Twin engine breakthrough
 Wide Range of products
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OBJECTIVES VS.
STRATEGIES ADOPTED
Differentiation
strategy
Long term
business
strategy
JIT inventory
policy
Value over
price
 Enhance profitability &
productivity.
 Shortening lead times.
 Flexible manufacturing.
 Premium retail experience.
Provide
support
Produce
product
Create
demand
H.D circle organization
LSC
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EXTERNAL ANALYSIS
Opportunities
International Heavy
weight motorcycle market
growing
European Demand for
Harleys has increased.
Asian economy is
opening up to imported
vehicles
Alliances with domestic
players are possible
A market for women
Threats
Fuel prices are fluctuating
Average buyers age is 42
and above
European noise
regulations
Competition have larger
marketing resources
International importing
tax and increasing labor
cost
Currency value falling
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INTERNAL ANALYSIS
Strengths
Robust Cash Flow
strong market position
and brand image
Relationship with the
retailers
Only major American
company
HOG - 750000+
members world wide
Customizing bikes
Weakness
Decreasing financial
performance
High price
Demand vs supply
Difficult to attract and
retain employees
Attrition rate increased
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SWOT ANALYSIS
Strengths
 Proven product quality
 Strong market position
 Brand image
 Wide distribution network
Opportunities
 Low interest rates
 Emerging markets
 Women riders
 Used bikes can be a bought
back by dealers
Weakness
 Costly
 Strong only in heavyweight
motor cycle
 Competitors
 Market stability
Threats
 Environmental protection
laws
 Oil prices
 Increase in labor costs
 competition
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RECOMMENDATIONS
 Reinforce alliance with Asian distribution network
 Create more attractive offerings at low interest
rates
 R&D must optimize fuel consumption
 Product development
 Horizontal Diversification
 Bring the heritage to the rest of the globe
 Expand manufacturing facilities
 Use television marketing
 Market to all age groups/make segments of
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Harley Davidson