This document provides an overview of the history and business strategies of Harley-Davidson and Honda motorcycles. It describes how Harley-Davidson was the top American motorcycle manufacturer until Japanese companies like Honda entered the US market in the 1950s and 1960s. Honda's innovation and focus on quality allowed it to quickly gain a large market share. The document also discusses how Harley-Davidson struggled after being acquired by AMF in the 1960s but was able to regain success in the 1980s. Porter's Five Forces model is applied to analyze Harley-Davidson's competitive environment. Key aspects of Honda's history, expansion to the US, and strengths are summarized as well.

1. VS.
Course : Business Strategy
Professor: Alexandros Papalexandris
Live free
or die tryin'
The Easy Riders:
Andreou Anastasios
Athanasiou Ioannis
Kakavoulis Anastasios
Kallis Nikolaos
Mehta Arjun

2. Introduction

3. Video

4. Harley-Davidson
from birth to maturity
•
By 1953 Harley is #1 American manufacturer of motorcycles.
•
In 1959, Honda entered the US market => rebirth of motorcycling in the US.
•
Japanese producers soon
moved up-market in the
heavyweight sector.
•
In 1969, Harley-Davidson was
acquired by AMF.
•
End of 1970s Honda became the
market leader in the heavyweight
motorcycles in the US.

5. Harley-Davidson rebirth
In 1981, the then CEO ,
organized a leverage buyout.
●
The new management team
brought a revolution.
●
US government imposed
49% temporary tariff.
●
The 1990s saw year-on-year uninterrupted growth in the
heavyweight motorcycle market and a continued increase in
Harley’s market share.
●

6. The Brand & The Product
●
Harley Experience(individuality, freedom & adventure).
●
HOG(1983)
●
Harley VS. Competitors
●
Personalization(engine types, gas tanks, frames, etc.).

7. Distribution
●
620 U.S Dealerships.
●
Dealer Development
Program
●
Demand greater than
Supply

8. International Expansion
●
Brand Image &
European market.
●
Buell(1998)
●
HOG's and Dealer's
Development Program.

9. People & Management
●
Management & Employee Relationship
●
Working Policies
●
Organizational Structure

10. PORTER’S 5 FORCES MODEL FOR HARLEY-DAVIDSON
Threat of new entrants(Low)
Power of customers(Low)
Very high entry barrier
§
Requires high capital investment
and is a mature industry
§
§
Low economies of scale
§
Since product is differentiated
customer tends not to be price
sensitive
Rivarly among existing firms
§
§
Harley-Davidson-Yamaha-SuzukiHonda
Harley’s help from ITC and
government allowed them to catch
up to their competitors and gain
some ground in market share
Power of suppliers(High)
§
§
Steel, basic electric equipment
and shipping of the final
motorcycles.
Harley has ’preferred suppliers’
and there is a trust between
them because suppliers generate
profit
Threat of substitutes
§
Cars, sport bikes, and scooter
bikes. BUT Harley is a luxury
vehicle, so there are few close
substituters for this
heavyweight motorcycle

11. Founded in 1948 by Soichiro Honda
●
In 1949 Takeo Fujisawa became partner.
●
Fujisawa brought along his financial
expertise and the marketing strengths.
●
In 1951 Honda unveiled a breakthrough
design that doubled horsepower over
competitive 4-stroke engines.
●
With this innovation Honda was off and
putting and by 1952 demand was brisk.
●

12. In 1952 first motorcycle factory ppurchased.
●
In 1958 the Honda 50cc Supercub was introduced.
●
Overnight Honda was overwhelmed with Supercub orders. In 1959
Honda had a 23% market share in Japan
●

13. Honda enters U.S market
●
Honda is the first Japanese company to begin the invasion.
●
No strategy. Just to see what they could sell (What a strategy!!!).
●
●
The start-up inventory with 25% of each of its four products:
The 50cc Supercub.
The 125cc.
The 250cc
The 305cc .
Los Angeles becomes the base of operations in the start.

14. ●
In 1960 , the first machines had problems.
●
Honda redesigned the motor for the US market.

16. By 1964, 1 of 2 motorcycles in the US sold was a Honda.
●
Early 1970's Japanese manufactures accounted for more than 85% of U.S
motorcycle sales.
●
At the end of 1970's, Honda dethroned Harley from market leader in
heavyweight motorcycles in United States
●

17. S
• High and powerful research and
development R & D
• Innovation
• Best market share leadership
• Strong and powerful brand equity
• Different and unique products
• Popularity is termed as one of the best
strength of the which results in betterment for
the company
O
W
Cost structure of the Honda is high as
compare to other automobile manufacturers
• Honda focus more on international deposits as
compare to domestic deposits
• Honda products are termed as inoffensive in terms
of style and design
• In truck line, the Honda Company is not offering
strong products and proposals
•
Honda has the best opportunity to use its R & D in
producing cars according to the needs and demands
of their customer. This is only possible because of the
increase is in demand for less pollution cars.
• Various models there are the which caters the lower
segment
• Fuel efficiency is now a days termed as one of the best
opportunity the which cans results in the best
productivity for the company
• Alliances are the best opportunities for the Honda
Company
• Honda cans increase of its production by focusing on
sales and research
T
One of the major threat is the economic
slowdown.
• All the external changes for instance taxes,
politics as well as government are the major
threats for the Honda Company
• Another threat is the lower cost competitors
• Price war is also consider as an Important
threat for this company
• Oil prices are contributing a lot towards the
loss of the Honda company
• Second movers are the major threat for the
Honda company
• Substitute products are the major threats for
the Honda company

18. Thank you .!.