Friday Feb 21st 2014
Full time (Day), September 2013
Harley Davidson Case Study
Business Strategy-BMGT 43370
“I the undersigned confirm that the work submitted here is entirely my own work, and that any work of others which is included has been properly referenced and acknowledged according to normal academic guidelines. “
Name: Prashant Saxena Student Number: 13203328
“When you buy Harley Davidson, you don’t buy a motorbike but you buy a Harley experience”, this is the main marketing strategy on which Harley Davidson as a brand has emerged out especially in US market. But there are number of factors which are pushing the sales and revenue of the company in not so desired direction, as the company also experienced first net loss in output and revenue in 25 years in the year 2009. The major factors attributing towards this decline is the ageing of its customers. The target customers of the company are middle-aged people who are now ageing and the youth is more attracted towards technologically advanced sports bike. Moreover, the strategy with which Harley Davidson got so much popularity in US is not paying off in international market, as it can be seen by their market share which is 55.7%, 13.7%, 21% and 7% in North America, Europe, Asia Pacific and Latin America respectively in the year 2011 for heavyweight motorcycle segment. Even low production volume in comparison to its competitors has imposed significant cost disadvantages to Harley Davidson.
From 1984 to 2008, Harley Davidson enjoyed dominance in US market and a continuous growth rate in its output and revenue. It can be attributed to its 3M strategy, i.e., Management, Marketing and Manufacturing. But they were not that successful in International market when they tried to expand its business. It can be analysed below with the help of Porter’s Five Force Competition Framework:
Porter’s Five Forces for Competition Framework...