The dealerships are becoming a one stop shop for bikes, accessories, clothing and financing. She added that Harley toys, built by the likes of Mattel and Kenner, are an excellent way to extend the passion for Harleys to a younger audience, and with an aging customer base, this is a key marketing challenge. Neither of these actions has resonated with the younger riders Harley sought to reach by taking them. How were we going to compete against these giants? Also, a bakery that only bakes treats for cats and dogs would also be using a niche advantage. Based on your analysis, do you recommend any changes in strategy to address the threats facing the company? After reading through some of the comments towards the very end of the case, it is obvious that functionality is a major concern in implementing th new system. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. Journal of management, 17 1 , 99-120.
However, now that other motorcycle manufacturers have developed similar styles, Harley-Davidson now uses product development as an intensive growth strategy secondary to market penetration. In fact, its line was so static over the years that many of the parts from a 1937 model fit on the 1969 design. In the last five years, Victory models have been selling at prices more closely comparable with Harley-Davidson. So that, the company needs to keep their relationship in the right ways. We believe that motorcycles are sports vehicles, not transportation vehicles. Harley-Davidson has made two unsuccessful attempts to attract young, performance-oriented riders from these sport motorcycle competitors.
Harley always develops new styles around their signature image to make sure that the product is not only a high quality piece of equipment but is also charismatic. The company grows by applying this intensive strategy in entering new markets. Time and again, the company seemed to be heading into a wall. Again, war vaulted Harley-Davidson into a position of higher volume, improved reputation, and deeper loyalty with owners and soldiers. Competitors are so intent on grabbing market share in the lucrative heavyweight class that they sometimes try to copy Harley's styling and even its sound.
Norling 69 Chairman of the Board, GlobalFoundries Inc. International Management Individual Assignment Table of Contents 1. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. But Harvard's Professor Shapiro disagreed. The most successful companies create an advantage that is unique just to the company and not easily copied.
The depression had an unfavorable effect on Harley as it did with most corporations, but it outlasted the crisis and celebrated its fiftieth year in 1953 as the sole survivor in the motorcycle industry. This was created through the development of mini-niches and the heavy construction of the parts. The Lifestyle Hook What kept Harley going in its darkest days, and what is driving it now in high gear, is the plain fact that the motorcycle it makes is not just a product but rather the centerpiece of a lifestyle -- even for its managers. Ironically, most of these rivals produce their motorcycles in the Harley-Davidson style or using actual Harley-Davidson components. This discussion suggests that, at the end of the day, Harley-Davidson may need a transnational strategy that strives for global efficiencies, but also caters to the local customs and consumer preferences. The Harley Owners Group, or H.
Can a user browsing my Web site read my Web. These dealerships are used to distribute products, accessories, and merchandise. They force Harley-Davidson to continually innovate and customize its product. Harley employees take 80 hours of courses each year in such subjects as statistical process control, learning techniques to enhance quality and productivity. Harley did turn public in 1965, but was bought by thirteen senior Harley- Davidson executives in 1981. Meanwhile, the Harley-licensed restaurant in Manhattan, modeled after the Hard Rock Cafe, will soon be joined by another, in Las Vegas.
Administration did a turnaround in the mid-1980 s, nevertheless, bringing about a fiscally sound open organization today. A diversification strategy of any type is unlikely to be a realistic option for the company because of its distinctive history. We all know that Harley-Davidson users are not only men, but also women. Davidson, the grandson of one of the founders, the company had a vital link to its design heritage. It is a highly productive business within the community hence the competition being very strong as well. Harley's marketing vice president, Joanne M.
Few suspected that this design would become so integral to modern motorcycles. Exhibit 1: Board of Directors Board Member Age Title Other Boards Barry K. In 2004, Kawasaki introduced the Vulcan ©2000 24 with a 2,053 cubic centimeter engine, the largest mass-produced V-Twin motorcycle ever. Of those similar in size to Harley-Davidson models, product features are comparable. Therefore, the challenge for companies is to find a way of achieving a sustainable competitive advantage over the other competing products and firms in the marketplace. Army, Harley-Davidson sales exploded during World War I.