Harley Davidson Future Strategy
1. Company Overview
Harley-Davidson Motor Company (HDMC) is one of the world leaders in the production, marketing and servicing of motorcycles in the US and throughout the world. The company manufactures a range of motorcycles and has established a network of dealerships in the US and overseas, and has a series of merchandising and selling strategies, including a growing financing business. The company is headquartered in Milwaukee, Wisconsin.
In terms of distribution of revenue, Harley-Davidson’s worldwide motorcycle sales (HDMC and BMC) generated 79.9% of the motorcycles segment’s total revenue, and increased by 8.4% during 2004. In addition the parts and accessories, general merchandise and other items accounted for 20.1% of revenues in 2004, and witnessed annual growth of 8.8% expecting to increase to 26% in 2005 fiscal year results.
The company focuses on the design, manufacturing, selling and service of heavyweight (engine displacement of 651+cc) performing motorcycles, in addition to touring and custom bikes. Within the last five years the company has also moved into a wide range of motorcycle parts, accessories, clothing and collectibles. What is remarkable about Harley-Davidson is their ability to consistently be the market share leader in heavy motorcycles. As of 2004, based on retail sales of new motorcycles their market share was 49.5% in the US alone. The US is Harley-Davidson’s largest geographical market, accounting for 81.7% of revenues in 2004, followed by Europe (9.5% of revenues), Japan (3.8%), Canada (2.7%), and other countries (2.2%). The US recorded annual growth of 7.6% in 2004. Growth rates in other geographies were as follows: Europe (14%), Japan (11.1%), Canada (1.8%), and other countries (22.7%) according to DataMonitor (2005).
Another significant point about Harley-Davidson is the passion of their users, which the company openly promotes in their Harley Owners Group (HOG). The HOG has approximately 900,000 members worldwide.
Harley-Davidson Motor Company (HDMC) is one of the world leaders in the production, marketing and servicing of motorcycles in the US and throughout the world. The company manufactures a range of motorcycles and has established a network of dealerships in the US and overseas, and has a series of merchandising and selling strategies, including a growing financing business. The company is headquartered in Milwaukee, Wisconsin.
In terms of distribution of revenue, Harley-Davidson’s worldwide motorcycle sales (HDMC and BMC) generated 79.9% of the motorcycles segment’s total revenue, and increased by 8.4% during 2004. In addition the parts and accessories, general merchandise and other items accounted for 20.1% of revenues in 2004, and witnessed annual growth of 8.8% expecting to increase to 26% in 2005 fiscal year results.
The company focuses on the design, manufacturing, selling and service of heavyweight (engine displacement of 651+cc) performing motorcycles, in addition to touring and custom bikes. Within the last five years the company has also moved into a wide range of motorcycle parts, accessories, clothing and collectibles. What is remarkable about Harley-Davidson is their ability to consistently be the market share leader in heavy motorcycles. As of 2004, based on retail sales of new motorcycles their market share was 49.5% in the US alone. The US is Harley-Davidson’s largest geographical market, accounting for 81.7% of revenues in 2004, followed by Europe (9.5% of revenues), Japan (3.8%), Canada (2.7%), and other countries (2.2%). The US recorded annual growth of 7.6% in 2004. Growth rates in other geographies were as follows: Europe (14%), Japan (11.1%), Canada (1.8%), and other countries (22.7%) according to DataMonitor (2005).
Another significant point about Harley-Davidson is the passion of their users, which the company openly promotes in their Harley Owners Group (HOG). The HOG has approximately 900,000 members worldwide.