Harley Davidson Case
HARLEY DAVIDSON: Preparing for the Next Century
Executive Summary:
Harley Davidson (HD) was established in 1903 by Harley, Arthur and Walter Davidson, and till date has proven to be an undisputed leader in the US heavyweight motorbike industry. The case discusses its strategies of sustaining a large market share as the motorbike Enterprise enters the 21st Century.
During the first three decades, HD prioritized quality of its product by employing research and development (R&D). The Company was distinctively known for its “V-twin” engine. It targeted elderly males, characterized by power and toughness, to ride its heavyweight bikes. However, in 1950s, its market share received a threat from Japanese companies who completely transformed the demographics and size of US motorbike industry by offering a “family-oriented” model. This lead to a decline in HD’s market share and depicted its image as a “niche” player.
Consequently HD had to consider some important modifications to take over the market, again. In 1960’s the firm went public for the first time. It started imitating the Japanese production methods to penetrate the non-traditional market segment. In addition to that, to create a socially responsible image of the company, in 1983, it formed Harley Owners Group (HOG). Later, during the last decade of the 20th Century, it acquired Buell Corporation to introduce a sportster line for young enthusiasts.
As the US motorbike giant entered the 21st Century, it launched some enticing projects including ‘Rental programmes’ and ‘Rider’s edge’ to occupy the largest market share. Despite of the ultimate bankruptcy situation it faced in 1970s, Harley Davidson has been able to outshine the motorbike industry with its consistent efforts and a unique brand positioning.
Harley Davidson’s Competitive Advantage:
For a company to sustain profits higher than the Industry average, it is very crucial to design a business strategy that provides it with a competitive
Executive Summary:
Harley Davidson (HD) was established in 1903 by Harley, Arthur and Walter Davidson, and till date has proven to be an undisputed leader in the US heavyweight motorbike industry. The case discusses its strategies of sustaining a large market share as the motorbike Enterprise enters the 21st Century.
During the first three decades, HD prioritized quality of its product by employing research and development (R&D). The Company was distinctively known for its “V-twin” engine. It targeted elderly males, characterized by power and toughness, to ride its heavyweight bikes. However, in 1950s, its market share received a threat from Japanese companies who completely transformed the demographics and size of US motorbike industry by offering a “family-oriented” model. This lead to a decline in HD’s market share and depicted its image as a “niche” player.
Consequently HD had to consider some important modifications to take over the market, again. In 1960’s the firm went public for the first time. It started imitating the Japanese production methods to penetrate the non-traditional market segment. In addition to that, to create a socially responsible image of the company, in 1983, it formed Harley Owners Group (HOG). Later, during the last decade of the 20th Century, it acquired Buell Corporation to introduce a sportster line for young enthusiasts.
As the US motorbike giant entered the 21st Century, it launched some enticing projects including ‘Rental programmes’ and ‘Rider’s edge’ to occupy the largest market share. Despite of the ultimate bankruptcy situation it faced in 1970s, Harley Davidson has been able to outshine the motorbike industry with its consistent efforts and a unique brand positioning.
Harley Davidson’s Competitive Advantage:
For a company to sustain profits higher than the Industry average, it is very crucial to design a business strategy that provides it with a competitive