OVERVIEW/PROBLEM STATEMENTThe following are the problems of Harley Davidson1. Declining market2. Poor economic climate3. Competition from Japanese manufacturers4. Poor quality of products5. Young Generation not buying the productCOMPANY PROFILEThe Davidson brothers, William D., William S., Walter and Arthur founded Harley Davidson, Inc. in 1903. In the first year, only three motor cycles were produced. In 1904 production increased to eight motorcycles. Company present office is located at Juneau Avenue in Milwaukee, USA. In 1907 the company was incorporated.In 1965, Harley-Davidson ended family ownership with a public stock offering and then in 1969, merged with American Machine and Foun ...view middle of the document...
Harley-Davidson¡¦s two main business segments are Motorcycles/ Related Products, and Financial services. With the purpose to expand its international market, the company acquired the Buell Motorcycle Company in 2000. Buell markets and distributes Harley-Davidson products through independent dealerships in Italy. The company¡¦s financial services unit (HDFS) provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.STRAGETYDifferentiation StrategyDue to heavy competition Harley Davidson has to adopt a focused differentiation strategy to targets a segment or limited number of segments in the market with a unique product, or service features, which persuades customers that it is superior to competitor¡¦s offerings.Prior to the management buyout in 1981, Harley was plague by quality issues, which tarnished the brand image and resulted in the company losing its position as market leader in the heavy weight motorcycle market. Post buy our, the management of Harley implemented a continuous improvement process, which increased quality dramatically, while at the same time reducing costs.Another diversification strategy that proved to be very successful for Harley Davidson was the licensing of the Harley Davidson brand name for use on a clothing range, to be sold exclusively through the Harley dealerships. This strategy has also worked very well for Harley. It was enabled Harley Davidson to leverage their hugely successful brand and reach consumers who previously would never be thought of as consumers.Growth StrategyGrowth strategy model provides some useful insights into the various growth strategies employed by Harley-Davidson over time, Harley-Davidson adopted a market penetration strategy that was centered on its core and somewhat narrow, range of heavy weight motorcycles. The market for this range of Harley¡¦s product had reached maturity and sales were decliningVertical StrategyHarley Davidson foll...
