Harley Davidson Case Examination Essay

Harley-Davidson

Circumstance Analysis

Harley-Davidson should customize is merchandise and service offerings for the 55-64 year old segment, and expand its Rental and Rider's Edge programs to stay growing Industry leader in

motorcycles

-- Market leader with fifty percent domestic and 32% global market share in motorcycles -- Stock prices CAGR since 1989: 32%

- American popular lifestyle brand

- Faithful customers: 900, 000 people in Harley-Davidson Owner Group - 50% of product sales to reproducing customers

Aging customer

basic and

problems to

entice new

consumers

- Average customer era grew via 35 in 1994 to 47 in 2004

- Young clients are not captivated by the brand

- Ladies are still simply 10% of clients

-- 2005 product sales target cut back by 10, 000 cycles

- Inventory price dropped 17%

How can Harley-Davidson always grow despite its ageing customer base and difficulty to draw new customers? Harley-Davidson should:

Modify product and service giving to

look after the 55-64 year-old part,

retaining it for a decade longer

Broaden the local rental program to

increase seeding, bringing even more new

consumers into the foundation

Expand the Rider's Border program to

increase seeding in the

underexplored women and small

segment

Harley-Davidson dominated america market during the first half the 1900's, yet lost talk about to the disastrous competition of Japanese companies towards the 70's 1908 – 1920's

1930's – 50s

1960's – 1970's

Competitive advantage

Development

Performance in race-tracks

Solid brand photo

- Well-known ambassadors

- National symbol status

Powerful/large motorcycle

Good brand photo

- Ambassadors

- Nationwide symbol position

Competitors

Of india Motorcycles

European entrants

Western entrants

Harley-Davidson

Hands-on men; untraditional, " rugged” life-style

Motorcycle

Industry

HDI Market share

Family, girls,

younger, more mature

66%

60 per cent

Japanese

15%

The Japanese entrants developed and dominated the untapped mass market of families, ladies and young and older bikers Harley-Davidson

Adapt offering to

55-64 yr. portion

Expand Rental

Program

Broaden Rider's

Advantage Program

Implementation

plan

Risks

Harley-Davidson succeeded in restructuring itself to outlive and job application growth Just before transformation (70's)

After change (80's +)

Harley-Davidson

Harley-Davidson Japanese

Japanese

Breadth of target

Production

Impact of Harley's change

• ALL OF US revenues: +80%

• Internat. revenues: + 170%

• Operating income: + $59M

• Market Share (heavy): +97%

Marketing features

Innovation

Top quality

Strongest

Poorest

Harley-Davidson broadened offerings and target segments, increased efficiency and top quality, and superior marketing strategy Harley-Davidson

Adapt supplying to

55-64 yr. section

Expand Rental

Program

Grow Rider's

Advantage Program

Implementation

plan

Hazards

In june 2006, the share price lowered due to the provider's uncertain capability to continue to grow in the future, and also to meet the objective of providing 400, 1000 bikes by simply 2007 Harley-Davidson

riders avg. age

+16%

2000

339. 000 329. 000

35

Stock: -17%

580

348 438

112 166 174 214 267

1998

-3%

47

2 . 453

2 . 064

1 ) 763

1 . 531

1 ) 350

1996

+34%

5. 015

4. 624

Income (000)

4. 091

three or more. 407

2 . 943

year 1994

Expected motorcycles

sold in june 2006

2002

761 890 Revenue (000)

2005

1994

2004

Planned Tweaked

Due to a great ageing customer base and inefficient new-clients fascination, management lowered by twelve, 000 the expected 2005 sales Harley-Davidson

Adapt supplying to

55-64 yr. part

Expand Local rental

Program

Grow Rider's

Edge Program

Execution

plan

Risks

Harley-Davidson should increase product sales by tailoring its merchandise and services offerings towards the 55-64 yr old segment, and expanding its Rental and Rider's Advantage programs you

Adapt merchandise and support

offering to cater for the 55-64

year-old segment

--...



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