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Briefly Information of
Company best
Harley Davidson is one of the
motorcycle producer in world. This company
not only produce motorcycle but also produce
boat, t-shirt, bag, leather Jacket ,helmet and
kind accessories, etc. Thanks to selection
HD ,their customer’s life style obvious that
show their freedom.

Histor
y

History of HD
1901–William S. Harley, age 21, completes a blueprint drawing of an
engine designed to fit into a bicycle.
1903 – William S. Harley & Arthur Davidson (Walter)
1909 – First V-twin powered bikes, it became most enduring icons of
Harley Davidson history.
1917 – 1/3 rd of the bikes were sold to the U.S military, at last 20,000
HD bikes were used in World War I (1918).
1920 – HD dealerships spread across 74 countries.
1930–Bill Davidson, Jr. wins the Jack Pine endurance contest with 997
points of 1,000.

History of HD
1943–Harley-Davidson receives the first of its four Army-Navy
"E" Awards for excellence in wartime production.
1955–Harley-Davidson produces almost 60,000 WLA models
during the war for military use.
1987 – Entered into American & New York stock exchanges.
1998–A new assembly facility opens in Manaus, Brazil, the first
operations outside of the U.S.
2001 – Two big plants constructed in Milwaukee & Kansas cities.

History of HD
2004–HD recorded its 19th consecutive year of record earnings
2009– Harley-Davidson announces expansion into India.
2010–The XL Forty-Eight is introduced, recalling the raw,
custom Sporters of earlier days.
Harley is the only major American Manufacturer of heavy weight
motor cycles.
Have more than 15,000 employees.

Today

Values
Values are the heart of HD business, they guide
our actions and serve as the framework for the
decisions and contributions our employees make at
every level of the Company.

Product extensionsMotor CyclesBike accessoriesBuell motor cycles: wholly owned subsidiary of
Harley by 2003 (closed now)

Brand extensions

•
•
•
•
•
•
•Merchandise
Helmet
Boats
Clothes (Jackets…)
Mugs
Collectibles….
Lighter
Watch
Beer
Bars

Harley - Davidson presents two new models this
year – one for men and one for women ...

This is Harley for
men

This is Harley
for women

Mission

We fulfill dreams through the experience of
motorcycling,
by providing to motorcyclists and to the
general public an expanding line of
motorcycles, branded products and services

PROPOSED MISSION
“Constantly renewing
ourselves and offer our
customers the best
motorcycle experience
without compromising
the quality.To be branded
as the best motorcycle
available in the world.”

Visi
on
HD, is an action-oriented,
international company, a leader in its
commitment to continuously improve
our mutually beneficial relationships
with stakeholders (customers,
suppliers, employees, shareholders,

PROPOSED VISION

“Always be competitive and continuously improving our
customer satisfaction, increasing dynamic, diverse and global
market” The best quality motorcycle, motorcycle products
and financial services will be provided world wide is the
commitment of Harley Davidson. The total team effort of
Harley Davidson employees is devoted to full filling dreams
of customers and we believe there is not a motorcycle riding
experience like Harley Davidson.

INTENSIVE STRATEGIES
Market Penetration

Product Development

Market Development

Market Penetration
•
•
•
•
•
•

Get some more market share from the existing market(U.S,
U.K, and Japan)
Use more marketing techniques like advertising
HD has a good brand name so it’s easy for them to eat up the
competitor market share
Competition is high in this segment mostly in U.S so good
choice market penetration
Expand the HOG (Harley Owners Group) to Asian countries
If the company can provide the customer satisfaction that they
are providing to the U.S customers to the Asian customers they
can increase the sales

Product Development
•

Younger generation and female are now
coming to this segment so expand the motor
cycle segments to younger generation and
females.
•
In Europe they can increase or expand the
Buell’s market share by introducing new
motorcycles.

Market Development
•

Harley-Davidson can bring in their vehicle to Asian
countries (India, China), because these countries have a
high population and the market potential is also high.
•
The cost to bring in the old vehicles (old product) to
India is so much difficult:
- There are so much environmental laws
-Taxes are problems
-Levis are high in India
•
So starting new plant in India can solve this problem.
Negotiations with the Government can solve these
problems

CURRENT
INTEGRATION
STRATEGIES
• Vertical Integration

• Horizontal
Diversification

Vertical Integration
• HD uses both backward and forward integration
• More than 750 suppliers of g&s are used in the design
and manufacture of motorcycles, parts and accessories
• The control of inputs is a necessary part of just-in-time
manufacturing
• HD has been backward integrating to maintain control
over the quality of suppliers
• HD owns most of its distributors
• Distributing completed motorcycles throughout the world
• HD is responsible for the delivery of parts and accessories

Horizontal Diversification
•
•
•
•
•

HD has acquired Buell Motorcycles and Eaglemark Financial
Services, in order to provide new product lines for their
customers
Buell was acquired in order to be able to provide customers
with a V-twin powered Sport motorcycle
This type of motorcycle has become increasingly popular
with the younger and European riders
Eaglemark provides motorcycle financing, motorcycle
casualty insurance and extended service contracts for HD and
Buell motorcycles
They also issue the HD Chrome VISA Card, allowing riders
and customers to show their brand loyalty

Yasemin
You
Şirin

might be a
biker if…

You can’t remember yo
You pull your bike into the motel room and
You take You carryatnames oronyour b
your kids’a bikers evenyour
kids for a ride of
picture birthda
You wave put motorcyclewhe
You have
par
but you can remember
Harley-Davidson made
Knucklehead, Panhead
Evolution, and Twin Ca

ORGANIZATIONAL CHART

MANAGEMENT
•

Excellent Corporate Governance has been a long
standing business practice at HD, because it makes
good business sense
•
The HD Management and Board of Directors is
composed of accomplished leaders from a range of
industries who meet regularly to review Company
objectives and plan for future growth
•
These individuals draw on their diverse
backgrounds and experiences
•
They are proud HD enthusiasts, and they work to
ensure that the decisions made by HD promote
fairness, financial transparency and accountability to
all our shareholders

EXTERNAL FORCES
•

Economic Forces

•

Technological Forces

•

Social, cultural, demographic, and natural
environment forces

•

Political, governmental and legal forces

•

Competitive Forces

Economic Forces
HD is the largest manufacturer of heavyweight
motorcycles in the world by market share, capturing half
the U.S. market and a third of the global market
As a luxury good, HD competes primarily on design and
quality, rather than price, which keeps margins high; gross
margin in 2011 is projected to be approximately 34%
Harley Davidson announces a 73.5% increase in income
in year-ago comparisons, totaling $119.3 million for the
first quarter of 2011 Increases in income were driven by a
1.5% increase in revenue, totaling $1.22 billion for 2011

Technological Forces
•

Computer-based inventory control systems could
play a role in managing motorcycle inventories
• Technology also impacts design
• Modern motorcycles also are relatively free of oil
leaks, vibration, and are more comfortable than those
of the past
• Communication across continents is easier and
cheaper than ever before because of computer-based
inventory control systems

Social, cultural, demographic,
and natural environment forces
•
•
•

•

•

As aging couples with excess income are Harley Davidson’s target
market, the aging population growth and income growth are good
signs for the company
The U.S. veteran population has increased by 1.1% , Veterans tend to
be motorcycle owners so sign of market segment growth for Harley
Motorcycles are mostly used during warmer months which are
generally March through August in the northern United States and
Canada so the motorcycles riders intend not to buy motorcycles until
they can ride them.
The United States has the greatest income inequality among
developed nations ,This indicates a large (growing) potential market
size for Harley Davidson as it is the leader in the Motorcycle market
with about 50% market
The changes in the lifestyle of the majority of youth population the
world-over has resulted in an enhanced business for HD

•
•

•
•
•

Political, governmental
and
legal forces regulates
The Environmental Protection Agency (EPA)

automobile and motorcycle emissions
Future revisions could negatively impact the motorcycle
industry. Steel prices increased 57% and aluminum increased
by 24%, so that the cost increases on to consumers, thus
raising the price of the product
The environmental protection laws create on additional
pressure for companies
Human resource legislation mostly in favour of the
employees also does have an impact on the profitability of the
company
The internationalization of the business of the company is
concerned the moving of production facilities to those
locations

Competitive Forces
•
•
•
•
•

Its main competitors are Honda and Yamaha based on their
world-wide market share
Harley’s competitors are more diversified, they are less
vulnerable to industry changes
Honda and Yamaha also offer products that sell well in the
international markets compared to Harley
Harley products are more expensive than its competitors, but
are known for service and saleability
Touring bikes have increased in popularity with each year.
Victory, Honda, Suzuki, and Harley have expanded their
touring line of motorcycles to cater to the aging market.
Harley offers eight variations of the touring motorcycle

INTERNAL FORCES
•
•
•
•
•

To determine HD’s strengths and weaknesses, an
internal assessment is required
Harley only has 7.7% of European market share (the
second largest motorcycle market in the world), and
25.3%of the Asia/Pacific region
Harley-Davidson’s strengths are in the U.S. market,
as 80% of Harley’s net revenue comes from U.S.
sales
Harley was viewed as sub-par when compared to
British motorcycles
Harley has a reputation for style and quality

INTERNAL FORCES(con’t)
•

Harley-Davidson also introduced water-cooled
engines, fuel injection, and catalytic converters to
improve exhaust emissions
• Harley’s strength in this area is largely due to its
marketing abilities in the U.S. market
• Harley customers are extremely loyal to their brand
and 90% of Harley owners intend to purchase another
Harley
• Management information systems could be used to
more effectively manage inventory at Harley .This is
currently one of Harley-Davidson’s few internal
weaknesses

MICHEAL PORTER ANALYSIS
Five Forces Analysis
Forces

Strategic Significance

Internal Rivalry

LOW-MODERATE

Threat of New Entrants

LOW

Threat of Substitutes
Products

LOW-MODERATE

Bargaining Power of Buyers

LOW

Bargaining Power of
Supplier

HIGH

Market share and financial analysis
BALANCE SHEET

HD CASH FLOW

MARKET SHARE
•

Competition in the motorcycle industry consists of
only a handful of producers worldwide.
• The Japanese producers Honda, Yamaha, Kawasaki,
and Suzuki are producing a full line of motorcycles
ranging from scooters to heavyweights, and together
control the largest share of the market
• Motorcycles are sold internationally, 3 main
geographic markets North America, Asia, and Europe
• The largest is the North American Market (USA
and Canada account for about 60% of this market)
accounting for 60% of worldwide motorcycle sales

MARKET SHARE (con’t)
•

Most Asians consider motorcycles as a basic means
of transportation.
•
Major target areas include China, Korea, Taiwan
and Vietnam.
•
The European Market is another market with great
potentials since Europeans have a higher disposable
income and enjoy a higher standard of living
•
Eastern Europe is not offering a good deal mainly
because of its unstable political and economic
environment

The following table details the
market share by region:
North American Market
Share
Harley-Davidson
Honda
Suzuki
Yamaha
Kawasaki
BMW
Other

46.40%
20.20%
9.80%
9.30%
7.10%
2.50%
4.60%

European
Market Share
•
•
•
•
•
•
•
•
•

Honda
Yamaha
BMW
Suzuki
Kawasaki
Harley-Davidson
Ducati
Triumph
Other

21.00%
17.70%
15.10%
14.80%
8.50%
6.60%
5.70%
3.50%
7.00%

Asia/Pacific
Market Share
•
•
•
•
•
•
•

Harley-Davidson
Honda
Kawasaki
Yamaha
Suzuki
BMW
Ducati
. Other

21.30%
19.10%
15.80%
13.60%
10.10%
7.30%
6.90%
5.90%

World Wide Revenue

2011 Worldwide Retail Sales of
Harley-Davidson Motorcycle

GROWTH SALES
For the first time in 17 quarters, Harley
reported selling more motorcycles than in the
year-ago quarter. Growth in the U.S was the
most impressive, while international growth
contributed too. Thanks to relatively surging
sales in the U.S., the mix of domestic to
international sales has dropped from 42% last
year to just 36% now.

Human Resource
Incidents that may
involve a potential
conflict of interest
Disclosure of any
waivers of any
conflict of interest
Regular reports to
the Board.
Reassess annually
the Human
Resources
Committee

Human
Resource Duties
Committee
and
Responsibilities is
to review the;
Total
compensation
Career
development and
management
succession plans
Make

Hasan Celal
Kök

Sturgis is a city in Meade County, South Dakota,
United States.
The population was 6,627 as of the 2010 census.
It is more popular than some city in the USA

• The Sturgis Rally is a motorcycle rally held
annually in Sturgis, South Dakota each first
full week of August
It was founded in 1938 by the Jackpine
Gypsies Motorcycle Club

The first year in Sturgis, there were 19
participants
But in recent years; Attendance was estimated
at, 614,951 in 2004, and 625,250 in 2005

• About 50.000 people coming
to this city for trade.

• It is the biggest motorcycle rally in the world
• A lot of people comes from thousands of
miles of distance
• For example: Some people comes from New
york by Harley Davidson motor.

• The distance between Sturgis and New York
1744 miles and Florida 2030 miles.
• Distance isn’t important for participator

The others of racing place
•
•
•
•
•

Sturgis
Florida
Shipley
Milwauke (wisconsin)
Las vegas

Mümine Çin
Strategic matr

STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION
(EFE)

COMPETITIVE PROFIL
MARTIX (CPM)

INTERNAL FACTOR
EVALUATION (IFE)

STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESSOPPORTUNITIES
–THREATS –(SWOT
MATRIX)

STRATEGIC
BOSTON
INTERNAL-E
POSITION AND CONSULTING XTERNAL ACTION
(BCG)
(IE)MATRIX
EVALUATIN
(SPACE MARTIX)

STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX

GRAND
STRATEGY
MATRIX

STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION
(EFE)

COMPETITIVE PROFIL
MARTIX (CPM)

INTERNAL FACTOR
EVALUATION (IFE)

STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESSOPPORTUNITIES
–THREATS –(SWOT
MATRIX)

STRATEGIC
BOSTON
INTERNAL-E
POSITION AND CONSULTING XTERNAL ACTION
(BCG)
(IE)MATRIX
EVALUATIN
(SPACE MARTIX)

STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX

GRAND
STRATEGY
MATRIX

EXTERNAL ANALYSIS FACTOR (EFE) MATRIX

COMPETITIVE PROFILE MATRIX(CPM)
Harley davidson

honda

yamaha

Critical succes factor

weight

rating

Weighed score

rating

Weighted
score

ra Weighed
ti score
ng

Product selection

0.15

2

0.30

4

0.60

4

0.60

Product quality

0.10

3

0.30

4

0.40

3

0.30

Price
competıtıveness

0.10

1

0.10

3

0.30

4

0.30

Market share

0.15

3

0.45

3

0.45

3

0.45

Management

0.05

4

0.20

4

0.20

4

0.20

Financial position

0.05

4

0.20

3

0.15

3

0.15

Customer loyalty

0.20

4

0.80

2

0.40

2

0.40

0.20

2

0.40

4

0.80

4

0.80

Global expansion
Total

1.00

2.75

3.30

3.20

INTERNAL ANAYLSIS FACTOR (IFE) MATRIX
STRENGHT

WEIGHT

RATING

WEIGHT SCORE

1-Strong brand name

0.15

4

0.60

2-ıt has strong market department

0.15

3

0.45

3-Strong relations built on trust and respect
with supliers and dealers

0.10

3

0.30

4-It is only major American motorcycle
manufactures

0.10

3

0.30

5-The standart and performance segments of 0.10
Harley Davidson make up 70 % of the
European heavy weight motorcycle market

4

0.40

RATING

WEIGHT SCORE

WEAKNESS

WEIGHT

1.

Harley davidson dosn’t emphasize price 0.10
in it’s product

2

0.50

1.

Loss of benefits

0.10

3

0.60

1.

Lack of opportunity for advancement

0.10

3

0.30

1.

Facing engoing capacity constraints

0.05

4

0.20

1.

Difficult to attract and retain talented
employee

0.05

4

0.40

TOTAL

1.00

4.05

STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION
(EFE)

COMPETITIVE PROFIL
MARTIX (CPM)

INTERNAL FACTOR
EVALUATION (IFE)

STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESSOPPORTUNITIES
–THREATS –(SWOT
MATRIX)

STRATEGIC
BOSTON
INTERNAL-E
POSITION AND CONSULTING XTERNAL ACTION
(BCG)
(IE)MATRIX
EVALUATIN
(SPACE MARTIX)

STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX

GRAND
STRATEGY
MATRIX

Strong

en
tr
S

hs
gtmarketing
Product Quality
Brand
Recognition
Trademark
Licensing

Weakness

Price factor
Brain drain
Reliant on few
suppliers
Market share
Ongoing capacity

Threats
Harleys ongoing
capacity restraints
Loss in domestic
market share in recent
years
Competitors of Harley
Davidson
Environmental
protection laws

The international
market is now larger
than the U. S.

ie s
it
nCustomers value
rtu
po
quality parts.
Op
Women and younger
riders are increasing
becoming interested
in bikes.
Industry registrations

SWOT Analysis

S-O Strategies
• Expand production into
Europe and Asia
• Expand marketing to female
riders
S-T Strategies
• Increase strong brand name
W-O Strategies
Pursue foreign markets more
agressively

SWOT
STRENGTHS MATRIX

Customer retention
Financial position
Product selection
U.S.market share
U.S. dealer Network

OPPORTUNITIES
Increasing number of
riders
U.S. industry growth
Aging population
Asian industry growth

WEAKNESSES
Dealer inventory system
International market
share
Expensive product
Product selection
International dealer
THREATS
Union relations
Aging U.S.population
Competitor
diversification
Declining European
growth
Availability substitus

SPACE Matrix

Ratings

Financial Strength(FS)
Leverage

+6

Liquidity

+4

Return on invesment

+3

Working capital

+4

Industry Strength(IS)
Growth potential

+5

Profit potential

+4

Capacity utilization

+4

Ease of entry

+5

Environmental Stability(ES)
Competitive pressures

-4

Risk

-2

Price range of competing products

-5

Demand fluctuations

-2

Competitive Advantage(CA)
Market share

-2

Loyalty

-1

Product life cycle

-1

Product quality

-1

SPACE MATRIX
Conservative

FS

Aggressive

+6
+5
+4
+3
+2

X
+1

-6

-5

-4

CA

-3

-2

-1

+1
-1

+2

+3 +4

+5

+6
IS

-2
-3
-4
-5

Defensive

-6
ES

Competitive

BCG Matrix
Relative Market Share
+30

1.0

STAR

0.50

PROBLEM CHILDREN

Industry
Growth
Rate

-30

COW

Harley-Davidson
GROWTH RATE

DOG

RELATIVE MARKET SHARE

48%
13.029

INTERNAL-EXTERNAL (IE) MATRIX
Harley-Davidson

U.S. MARKET SHARE 49%

Harley-Davidson EUROPEAN MARKET SHARE 07%
4

Harley-Davidson ASIAN MARKET SHARE 22%
H
EFE Total
Score

high

4

strong

3

H.D US
Market
49%

Weighted

3

H.D ASIAN
Market
22%

medium

H.D EUROPEAN
Market
7%

2

Low

1

avarege

2

Weak

1

GRAND STRATEGY MATRIX
Rapid Market Growth
QUADRANT:2

Weak
Competitive
Position

QUADRANT:3

QUADRANT :1

QUADRANT:4

Strong
Competitive
Position

Slow Market Growth

STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION
(EFE)

COMPETITIVE PROFIL
MARTIX (CPM)

INTERNAL FACTOR
EVALUATION (IFE)

STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESSOPPORTUNITIES
–THREATS –(SWOT
MATRIX)

STRATEGIC
BOSTON
INTERNAL-E
POSITION AND CONSULTING XTERNAL ACTION
(BCG)
(IE)MATRIX
EVALUATIN
(SPACE MARTIX)

STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX

GRAND
STRATEGY
MATRIX

QUANTITATIVE STRATEGIC MATRIX (QSPM)
E.P. EUROPE

STRENGHTS

WEIGHT

AS

TAS

3

0.0225

0.135

2

0.09

0.05

3

0.0375

3

3

Harley Davidson operates in two segments:
Harley Davidson motorcyles & related products and HDFS(Harley
Davidson Financial Service)
0.0125
Harley Davidson is the only majör American heavyweight motorcyle
manuf

AS

0.0225

Net income of 2010 was $146.545,it is very big rate to compare
with the previous year 2009
0.075
The standard and performance segments of
Harley Davidson make up70% of the EUROPEAN heavy weigted
motorcycle market
0.045

E.P. ASIA

TAS

4

4

0.2

4

0.2

4

0.3

2

0.15

2

0.15

2

0.15

3

0.9

3

0.9

The European demand for Harley Davidson is the highest international
market and represents the single largest motorcyle market in the World

3
4

0.15
0.3

3
2

0.15
0.15

0.1

4

the U.S. heavyweight market

4
4

0.3

3

0.225

3

0.15

4

0.2

3

0.075

4

0.1

0.1

2

0.2

3

0.3

0.12
5

1

0.0125

2

0.025

0.05
Strong brand name
0.075
WEAKNESS
High price
0.075
Harley Daviidson has problems in gaining more market share in
some European countries(That’s one of the main markets for
heavyweight motorcyles outside U.S).
0.03
OPPORTUNİTES
They didn’t yet start its sales in India one of the biggest market s
0.05
0.07
Required production is not met ,analysing the future of
5
heavyweight motorcyle market is growing and is now larger than
The international heavy weight market
0.025

0.07
5

0

0

0.1

Women and younger riders are increasing becoming intrested in bikes
0.05
Market share increasing in Europe and Asia for the last two years
0.02
5
Increasing demand U.S market for bikes
Customer value quality parts

THREAT
Harleys ongoing capacity restraints caused a shortage supply and a loss

Conclusion
• Harley- Davidson have to change American
culture and helped the future of motorized
vehicles.
• Must implement latest technology & facilities.
• Loyal customers are not sufficient for
company to survive.
• “it’’s a journey but not a destination”

Possible
Strategiesinto Foreign Mark
Expand
• Asia
• Europe

Product Development

• Expand Motorcycle line for youn
market
• Buell expansion

Concentric Diversification

• Other recreational vehicles
• Expand HOG and BRAG owne

Possible
Strategies

Made new alliances with s
local bike
companies to produce low c
• India

Increasıng dıversity progr
• Tour
• museum

Increasing

advertising

Thanks for paying attention

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