By: Abhishek Mishra

ISBE-A/SS/10-12 IIPM, Ahmedabad

Mission:
We fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market Segments.

Vision:
Harley-Davidson is an action-oriented, international company, a leader in its commitment to continuously improve [its] mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, Government, and society). Harley-Davidson believes the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities.

History:
y Harley-Davidson or H-D or Harley is an American motorcycle manufacturer founded in Milwaukee, Wisconsin during the first decade of the 20th century. y It was one of two major American motorcycle manufacturers to survive The Great Depression . y In 1901, William S. Harley, age 21, drew up plans for a small engine with a displacement of 7.07 cubic inches (116 cc) and four-inch (102 mm) flywheels. The engine was designed for use in a regular pedal-bicycle frame. This couldn t run on steep hills. y Work immediately began on a new and improved secondgeneration machine. This first "real" Harley-Davidson motorcycle had a bigger engine of 24.74 cubic inches (405 cc) with 9.75 inches (25 cm) flywheels weighing 28 lb (13 kg).

Clockwise from top left: William S. Harley, William A. Davidson, Walter Davidson, Sr., Arthur Davidson

1907 Model

Harley-Davidson 1000 cc HT 1916

y In 1917, the United States entered World War I and the military demanded motorcycles for the war effort. Harleys had already been used by the military in the Pancho Villa Expedition but World War I was the first time the motorcycle had been adopted for combat service. HarleyDavidson provided about 15,000 machines to the military forces during World War I. y By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. Their motorcycles were sold by dealers in 67 countries. Production was 28,189 machines. y In 1921, a Harley-Davidson, ridden by Otto Walker, was the first motorcycle ever to win a race at an average speed of over 100 mph (160 km/h).

Harley-Davidson 1200 cc SV 1931

The Great Depression:

y The Great Depression began a few months after the

introduction of their 45 cubic inch model. HarleyDavidson's sales plummeted from 21,000 in 1929 to 3,703 in 1933. Despite those dismal numbers, HarleyDavidson proudly unveiled its lineup for 1934. y In order to survive the remainder of the Depression, the company manufactured industrial power plants based on their motorcycle engines. They also designed and built a three-wheeled delivery vehicle called the Servi-Car, which remained in production until 1973.

Servi-Car

The First Expansion:

y In the mid 1930s, Alfred Rich Child

opened a production line in Japan with the 74 cubic inches (1,210 cc) VL. The Japanese license-holder severed its business relations with HarleyDavidson in 1936 and continued manufacturing the VL under the Rikuo name.

World War II:

y One of only two American cycle manufacturers to survive the Great Depression, Harley-Davidson again produced large numbers of motorcycles for the US Army in World War II and resumed civilian production afterwards, producing a range of large V-twin motorcycles that were successful both on racetracks and for private buyers. y Harley-Davidson, on the eve of World War II, was already supplying the Army with a military-specific version of its 45 cubic inches (740 cc) WL line, called the WLA. y Harley-Davidson received two Army-Navy E Awards, one in 1943 and the other in 1945, which were awarded for Excellence in Production.

XA model

WLC for the Canadian military

Restructuring and Revival

y In 1981, AMF sold the company to a group of thirteen investors led by Vaughn Beals and Willie G. Davidson for $80 million. y Inventory was strictly controlled using the just-intime system. y In the early eighties, Harley-Davidson claimed that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers. After an investigation by the US International Trade Commission, President Reagan imposed in 1983 a 45% tariff on imported bikes and bikes over 700 cc engine capacity. Harley Davidson subsequently rejected offers of assistance from Japanese motorcycle makers.

Buell Motorcycle Company

y Harley-Davidson's association with sport

bike manufacturer Buell Motorcycle Company began in 1987 when they supplied Buell with fifty surplus XR1000 engines. y Buell continued to buy engines from Harley-Davidson until 1993, when Harley-Davidson bought forty-nine percent of the Buell Motorcycle Company. y Harley-Davidson increased its share in Buell to ninetyeight percent in 1998, and to complete ownership in 2003.

2005 Dyna Super Glide Custom 2002 Sportster 883 Custom

2002 Softail Heritage Classic. 2003 Harley Davidson XL1200 Custom Anniversary Edition

Harley-Davidson offers factory tours at four of its manufacturing sites, and the Harley-Davidson Museum, which opened in 2008, exhibits HarleyDavidson's history, culture, and vehicles, including the motor company's corporate archives.

Harley-Davidson culture

Idris Mootee s Brand Life Cycle for Harley-Davidson

Product Life Cycle:

Brand Segmentation:
y Sensory y Sociable y Worriers y Independent

Ansoff Matrix

Products
Present New

Market Penetration

Product Development

Markets
Market Development Diversification

The Balanced Scorecard

Financial Objectives Measures > Targets > Initiatives

Customers Objectives  Measures >Targets > Initiatives

Business Processes

Strategy

Objectives > Targets  Measures > Initiatives

Learning and Growth Objectives Measures > Targets > Initiatives

Three Ways in which Companies Formulate their Strategy

Strategy
An integrated set of actions designed to create sustainable advantage over the competitors

Strategy Thinking
Creative, Entrepreneurial insight into a company, its industry and its environment

Formal Strategic Planning Systematic comprehensive approaches to developing strategies

Opportunistic Strategic Decision Making Effective responses to unexpected opportunities and problems

What drives the Competitor ?

What the competitor is doing or is capable of doing ?

Objectives

Strategy

Competitor Response Profile

Assumptions Resources and Capabilities

Example of Critical Success Factors (CSFs) across Primary Resources

Industry CSFs
Deliver On-Time Service. Implement Hub-andspoke system effectively. Monitor the legal and regulatory environment.

Peer CSFs
Continually Reduce Cost Per Passenger Mile. Attract Merger Opportunities. Increase Code Share Partnerships.

Enterprise CSFs

Environmental CSFs
Enhance Relationships with new Labor Leadership.

Temporal CSFs Enhance Brand Image. Address Decrease in Customers due to Security Issues.

Management CSFs
Optimize Crew Utilization. Manage Budgets.

Just In Time Strategy

Register Order

Customer

Manufacture Product

Stock Management

Provider

Generate Orders To Providers

Product: Variety Quality Design Features Brand Name Packaging Services

Target Customer Intended Positioning

Price: List Price Discounts Allowances Payment Payment Period Credit Terms

Target Customer Intended Positioning

Placement: Channels Coverage Assortments Location Inventory Logistics

Promotion: Advertising Personal Selling Sales Promotion Public Relations

Strategy Recommendation and Implementation:

Market Penetration:
y Get some more market share from the existing market, like U.S,

U.K, and Japan etc through more marketing techniques like advertising. Harley-Davidson has a good brand name so it s easy for them to eat up the competitor market share if they can provide some more customer benefit. y Competition is high in this segment mostly in U.S so market penetration can be a good choice for the company. y Expand the HOG (Harley Owners Group) to Asian countries, if the company can provide the customer satisfaction that they are providing to the U.S customers to the Asian customers they can increase the sales.

Product Development:
y Younger generation and female are now coming to this segment so

expand the motor cycle segments to younger generation and females. y In Europe they can increase or expand the Buell s market share by introducing new motorcycles.

Market Development:
y Harley-Davidson can bring in their vehicle to Asian countries like India

and China, because these countries have a high population and the market potential is also high.

Diversification:
y Bring in new vehicles to new markets like India and China which is a

good choice. y New types of recreational vehicles is the best choice.

Thank You.
Any Questions ?