This Presentation includes History of bikes, history of Harley , current position in the market , how harley davidson survived from several challenges , what strategies they adopted and what are entrepreneur aspect of the company.

1. 100 years ago Most of the
people owned a horse and
only the rich had
motorbikes. Today most of
the people has motorbike
and only rich have horses.

3. Out line
▪ History of Bikes and Harley Davidson .
▪ Past challenges and survival strategies.
▪ A comprehensive Market analysis.
▪ How Harley Davidson created value and differentiated.
▪ An understanding of entrepreneurship side of Harley Davidson.

4. History of
Motorbikes
▪ After 1860 Europeans
started to make many
designs prototype.
▪ 1890’s bicycle was
popular mode of
transportation despite
of poor state of the
roads.
▪ until in 1885 Daimler
made a wooden
engine motorbike.(7
miles/hour).

5. They had a dream
William S . Harley Arthur Davidson Davidson Walter
1901 - 1903

6. They started from a
small shed with a big
dream.
Milwaukee , USA

8. • 1907 – Another
Davidson
brother(William A.
Davidson joined
the team.
• 1907 – Production
increased to 150
motorcycle.
• H-D became a fully
devoted company.

9. In 1909 they madeV-Twin
cylinders which made Harley
a trade mark.
You can still find the same
Cylinders in today’s model.

10. Turning threat to
Opportunity :
1917 –When USA
enters WWI, Harley
devoted all efforts for
Producing bikes for US
army. In that year
Harley produced 8000
Military bikes.
Also duringWWII
1942-1945
Harley D. turned out
88,000 Motorcycles
forAmerican Soldiers.
Harley received Navy
Army Award on 1945
for great performance
and reliable machines.

11. TheWrecking Crew
A Marketing Strategy or a
Revolutionary Event ?
1919-1921
Changed Harley’s
reputation from slow and
reliable to invincible and
fast, riding those bikes
104 miles/hour

12. A success Story▪ From a small Shed to 67
countries.
▪ In 1921 Harley Davidson
turned out to be World’s
largest Motorcycle
Manufacturer with Covering
67 countries and having
catalogues in 7 languages.

13. Great Depression
1929
▪ In 1929 stock market
crash temporarily hurt
sales, decreased the sales
from 21000 to 3700 units.
▪ In order to survive
company manufactured
industrial power plants
based on their motorcycle
engines.
▪ They also designed and
build three wheeled side
cars called Servi-car which
continued in production
until 1973.

14. HONDA VS Harley-d
Quality
Price50 cc
1000
CC

15. ▪ Honda : Mass production/Lean
production .
Resources and Capabilities :Lower
cost, fuel efficient and reliable unlike
Harley.
▪ Harley : Job shop.
Resources : brand and loyal
customers.
Capabilities: customized bikes.
▪ By 1959 Honda turned to be
worlds largest Motorcycle
producer.
Resources and Capabilities

16. BENCHMARKING HONDA
▪ In 1980 while the only goal was survival managers of
Harley visited Honda office in Ohio and they observed :
Neat Assembly line.
Minimum paperwork.
Just in time system.
Workers responsible for quality.

17. Results
 Employee involvement.
Just in time.
Statistical control trainings to employees to ensure the quality.
 Inventory turnover increased from 2 to 7 per year.
 Productivity went up by 50%.
 WIP inventory reduced up to 75%.
 Operating profit increased by 59 Million USD.
 Market share increased by 97%
 Harley listed on NYSE.
New Approach

18. Mergers and Acquisition
▪ In 1965 went to public.
▪ In 1969 Harley merged with AMF (
American Machine & foundry).
▪ Expanded production without
considering the quality.
▪ Downsized the company ,workers
strike.
▪ Reliability and reputation dropped.
▪ Produced low priced bikes but dealers
couldn’t sell it because of low margin.
▪ Goal was to survive.
▪ In 1981 AMF sold the company to a
group of 13 investors including
founders family members.
▪ to get into sport model bikes HD
acquired Buell in 1998

19. Harley Davidson Today
• Mission Statement.
• Today’s Position.
• Current Strategies.
• Mission Statement.
• Corporate and business strategies.

20. Mission : We ride with our customers and apply this deep
connection in every market we serve to create superior
value for all of our stakeholders.
Vision : fulfilling dreams
of personal freedom.

21. Harley is not Just a
bike it’s a lifestyle . FreedomComfort
Open Roads
Independent

22. Basicallywedon’tbelieveinlightweightmarket.Webelievethatmotorcycles
aresportsvehicles,nottransportationvehicles.Evenifamansayshebought
amotorcyclefortransportation,itsgenerallyforleisuretimeuse.The
lightweightmotorcycleisonlysupplemental.
-WilliamHarley(Founder).

23. Corporate Strategy
Entering market new
markets with new products.
V-Rod 1000 CC for Youth Street rod 2005 for
women
Sportster 2004 for women
Penetrate Indian Market
Acquisition of buell in 1998 to get
into sports model

24. Products and Merchandising

25. Giving Back to community
• Building Strong, Skilled and sustainable communities.
• All Company, dealers, suppliers, customers and employees takes part in causes, charity events and donations.
• Providing free save riding courses for the customers.

26. • ProductDesign.
• Materialselection.
• EnergyConsumption.
• Manufacturing.
• DistributionOperations.

27. My Recommendations
My learnings
• How an entrepreneur stick to his idea and
never give up on his dreams.
• Why response to environment is really
important.
• The key to a successful business is
understanding to when and how to
response to the environment.
• Differentiation is all about emotions.
• To grow international exposure : Europe and Asia prefer light weight , high technology,
sportive and low priced motorcycle.
• They need to make a deep emotional connection with young generation as they are
their next customers.
• There should be more dealerships available in countries they are selling motorbikes for
example in Istanbul there is only one dealership while in USA you can find a dealership in
every 20-30 mile.