A Case Study On Harley Davidson

A CASE STUDY ON HARLEY
DAVIDSON:
DEFENDING A PIECE OF DOMESTIC PIE

About Harley Davidson
 Founded in 1903 by William S Harley and the Davidson brothers.

 Symbolizes the all-American attributes of individuality, freedom and passion for adventure.

 By 1960 Japanese motor companies hit the country

 In 1969 AMF, a recreational equipment conglomerate

 By 1976 Harley-Davidson offered 4 models
 With the 80s Harley-Davidson started its revitalization program with the government help.  Harley-Davidson Inc. had $1.04 billion net income (up 8.7% from '05) it sold
349.196 units to retailers (21,7 % abroad) and it has a domestic market share of
49,3% for heavyweight motorcycles.

S.W.O.T Analysis
Strengths &
Opportunities

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Strong image
Brand loyalty
Strong investment in research and Customization
The only American manufacturer
Created Subculture

Weaknesses
& Threats

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Small Company
Not the best Engines
American Company, so not a very good image abroad
Current markets becoming too narrow for higher profits
Increasing Immigration in US

Harley Davidson: a victim of unfair competitive practices or its own lack of strategic vision ?
 In the 60s and 70s Japanese technology bumped the world.
 Harley Davidson should have been prepared to the entry of new products, reactions with strong advertising and campaigning.
 It should have developed better products and processes before the Japanese could come into the market.
 Despite the lack of data to defend the Japanese against selling below costs
(dumping), it looks like they were more efficient in their processes.
 Therefore, Harley Davidson was not a victim of unfair competitive practices.

Harley Davidson: Does Size Matter ?
 Being a small scale producer can pose to be a disadvantage or rather a problem when competing with a producer who is able to reap the benefits of large scale economy.  The Japanese were selling their products worldwide, they could reduce their costs due to large scale