International Business Strategy
HARLEY DAVIDSON AND THE INTERNATIONAL MARKET FOR LUXURY GOODS
Once a company decides to expand in emerging international markets, it faces a stream of decision making sequences and marketing strategies. The criteria to select entry market exclusively depends on country infrastructure, political risk, market access and potential, shipping considerations, foreign exchange, service requirements, timing, product fit and factor cost, conditions etc.
Type A company:
Identifying a country
Since the appeal of developing economies is their rapid growth, I have identified India as a new market for Harley Davidson, the Milwaukee- based motorcycle manufacturer.
Importance of location
India is the second-largest motorcycle market in the world
Twelfth largest economy in the world, fourth largest (GDP $3.528 trillion, 2009) by purchasing power parity.
Rising middle class and significant investment in construction of new highways have opened the door to leisure motorcycle riding.
Company’s objective
To import its motorcycles, accessories, riding gear and evaluate how best to evolve its approach to the new market.
To find local dealer, partners who can share the passion and commitment to building customer relationships, the Harley-Davidson brand and business in India for the long term
Company’s strength:
• Global leader in cruising and touring motorcycles with sales in more than 70 countries
• Good marketing division, dealer promotions, customer events, magazine, direct-mail, advertising and public relations.
• HOG (Harley Owners Group) having 7, 50,000 members world wide.
Weakness:
• High price, costly bikes in this category
• Required production is not met, analyzing the future of Heavyweight motorcycle market • Harleys average buying age is 42 years old and increasing
Factors affecting attractiveness:
Rapid development of India’s economy and physical infrastructure
Establishment of dealer financing relationship to
Once a company decides to expand in emerging international markets, it faces a stream of decision making sequences and marketing strategies. The criteria to select entry market exclusively depends on country infrastructure, political risk, market access and potential, shipping considerations, foreign exchange, service requirements, timing, product fit and factor cost, conditions etc.
Type A company:
Identifying a country
Since the appeal of developing economies is their rapid growth, I have identified India as a new market for Harley Davidson, the Milwaukee- based motorcycle manufacturer.
Importance of location
India is the second-largest motorcycle market in the world
Twelfth largest economy in the world, fourth largest (GDP $3.528 trillion, 2009) by purchasing power parity.
Rising middle class and significant investment in construction of new highways have opened the door to leisure motorcycle riding.
Company’s objective
To import its motorcycles, accessories, riding gear and evaluate how best to evolve its approach to the new market.
To find local dealer, partners who can share the passion and commitment to building customer relationships, the Harley-Davidson brand and business in India for the long term
Company’s strength:
• Global leader in cruising and touring motorcycles with sales in more than 70 countries
• Good marketing division, dealer promotions, customer events, magazine, direct-mail, advertising and public relations.
• HOG (Harley Owners Group) having 7, 50,000 members world wide.
Weakness:
• High price, costly bikes in this category
• Required production is not met, analyzing the future of Heavyweight motorcycle market • Harleys average buying age is 42 years old and increasing
Factors affecting attractiveness:
Rapid development of India’s economy and physical infrastructure
Establishment of dealer financing relationship to