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Harley Davidson Case Study
- 2. Presented by : Jyoti Amit Maulik Daman
- 3. The case at hand...... • HOGS - History • In 1903 three brothers, William, Walter and Arthur Davidson with the neighborhood friend Harley, fabricated first H-D motorcycle • More than 100 years old U.S. company • Personified the American desire for power, speed and personal freedom • Heavy weight bikes u • Survived two worlds war and great depression sfdsfddfdsfffffffffffffffffffffffffffffffffffffffffffdfssssssssssssssssssssssssdsfdsfdsfdsfddsewy • 1953 HD was sole domestic marker of motorcycle • initial public stock offering in 1965
- 4. AMF acquired H-D… Advantages Disadvantages
- 5. Entry of Japanese motorcycle companies… High Quality Honda, Strategy to Ultimately create attacked Suzuki,Y niche Harley amaha… market Low end market with light weight bikes
- 6. H-D from 1973 to 1983.… Ignored the threat from International competitors Because of quality problems market share plummeted from 75% in 1973 to 25% in 1983 $25 million loss in 1982, Achieved substantial tariff protection from U.S. Congress Unsuccessful attempts to improve productivity by cutting wages and automation
- 7. Emphasize on Total Quality Improvement .… Supplier training Flatter Employee and supplier organization Involvement partnership structure Massive worker Walk the Talk Statistical training in TQ process control Customer needs Cross functional and satisfaction quality teams Just -In -Time
- 8. Importance of Quality to the rebirth…….. After TQC Market share grown to 63%
- 9. Survival under AMF… H-D is high end vehicle, where quality and customization are important factors. Customer focus. AMF focuses only on production competing with foreign motor.
- 10. Targeting other motorcycle segments… • Changing trends • Diversification : hedging your risk. Advantage • Available supply chain for two wheelers • Hamper brand image • Production strategy is different for both the products • Layout for both the product is different : Job shop type Disadvantages product layout
Editor's Notes
- Organization of agriculture: A clear long-term vision where inter-sectorallinkages are explicit.• Sustainability and natural resource management: Prescription must lie in thedomain of political economy. Otherwise, allocating funds for watersheddevelopment, agroforestry, soil conservation, and so on will not produce desiredresults.4• Institutional change: Policy document must spell out new approaches and newinstitutions free from the shackles of bureaucratic and self-help framework.• Investment priorities: There is a need to develop a consensus on investmentthemes, priorities and policies. Policy document must lend strength to the claimfor greater investment in rural areas, and also re-examine its programmes in thelight of complementarities.• Incentives: Document must articulate a clear vision on the incentive framework.• Risk management
- Increased productionDrove down qualityFinal quality inspection more than 50% of timeDefects in the hands of customersHOGs personified American desire for power, speed , personal freedom1965, Harley made its initial public stock offering
- Youth trend is not only heavy weight but also light weight vehicle Diversification : hedging your risk.As conversant with the supply chain of 2 wheelers, H-D can use the competence to target different segments. H-D has distribution channel