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What are the strategic factors facing harley davidson
What are the strategic factors facing harley davidson
Harley davidson on the domestic and international market
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It doesn’t matter if you are in Germany, China or in Timbuktu you know the brand of Harley-Davidson. You can find a dealership on every continent except one, Antarctica.
Many of Harley-Davidson customers love the fact that Harley-Davidson motorcycles are made in America. For the last century, Harley-Davidson has been the only true American made motorcycle. Harley-Davidson has helped the American economy by having their factories and dealerships here in America, and by staffing those facilities.
During an interview in April of 2015 at the Loyalty Expo Brad Marg, the Chief Operations Officer of Harley Davidson, said he believes it’s the high-quality products and the dealerships, that are responsible for keeping their loyal customers. Harley-Davidson
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The down side is, employment comes with higher wages and taxes. Harley-Davidson had been partnered up with the unions for the last few decades, which caused those wages to be even higher. The higher wages are one of the reasons, companies are looking to move their operations overseas including Harley-Davidson.
Product cost has gone up due to increases in the price of raw materials, labor, and overhead. They’ve had to liquidate assets (such as closing at least 2 of their facilities) and had to lay off those employees who were employed at those locations in an attempt to help balance out those increases.
Harley-Davidson has a challenging time getting into the European Market. The European market is flooded with motorcycles from Asia and from Europe itself. American motorcycles are more expensive than those produced in Europe and in Asia. Only fourteen percent of their total sales come from Europe.
The opportunity to grow in Asia and India is limitless. The land and labor are cheaper and could help with lowering the operations cost, which can only help the product cost, and their profit margin. Harley-Davidson has just opened a new facility in Thailand and are hoping that the production there will help offset the costs here in
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Advertisements need to be increased, with innovative ideas to capture the interest of these demographics. (Maybe Hollywood could help by producing a movie that puts Harley-Davidson front and center). Harley-Davidson is working on recruiting women riders by offering three to four-day riding courses at their dealerships. They believe by offering the classes, more women who have been dreaming of riding, but were too afraid to, will gain their courage through these classes.
With the younger generations, they can be both an opportunity and a threat for Harley-Davidson. As young adults enter the world, more and more of them have higher debts (due to college costs), than the generations did before them. Harley-Davidson has launched an internship, for 8 college students, for the summer. They will all receive the three to four-day riding courses and a free motorcycle to take across the country. Their assignment is to take photos and post as much as they can on social media in hopes to spark interest in the younger generation.
Harley-Davidson Financial can work with lower interest rates so, more people will be interested in financing with them, instead of the
Harley-Davidson (HD) has taken a number of steps to deliver a higher value to clients. One of the core activities in that field is establishing personalized relationships with their customers by face-to-face and social media channels. Harley Owners Groups (H.O.G.) alongside with the riding clubs were founded all over the world setting up multiple types of membership based events like major destination rides, rallies, local charity events, and etc. There is a significant personal benefit offered through such events in the face of socializing and bonding with fellow bike enthusiasts, fostering closer ties between them, sharing a spirit of freedom and adventure.
Thesis: Even though there is a lot of skepticism towards Chinese car companies making a foothold in the American car market, with the right marketing and not rushing into the market, there is a good chance that the Chinese car companies will follow the Japanese car companies and carve a spot in the American market.
European-wide qualification is directly controlled. Global cooperation strengthens the BMW Group and allows folks to detect more intensely with the makes of the collection: with the subtleties of BMW, the city agility of MINI, the esteem worth of Rolls-Royce or the driving desire of BMW Motorrad. It paves the mode for consumers to experience BMW Finest round the world.
The interesting part of this industry is the fact that there is no company with a dominant market share. Even though some revenue numbers might be higher for some companies, each company has a specialty that it brings to the industry. One of the main costs is manufacturing their products. A major reason the companies are moving manufacturing plants to Asia and South America is to lower manufacturing costs.
External Opportunities • More people (94%) have new requirements for bicycles; the customers need bikes in different fields. • The popularity of Lance Armstrong has increased the interest on road bike, which represent 5% of the market. • The growing interest in cycling this is result in magazine coverage and the using of bikes and accessories in window displays that related to cycling.
The first strategic alternative for Harley-Davidson (HD) to address is that of adjusting pricing. Throughout the years HD has been known for its ability to provide high quality motorcycles to its customers, however this quality comes at a high price. To those customers who are willing and able to pay HD’s higher price for quality the present pricing schedule is acceptable. Unfortunately, to those unable to pay this higher price HD’s motorcycles are unattainable making competitor bike financially more appealing. In order to increase HD’s sales, and consequently in...
The biggest challenge facing Harley-Davidson is poor quality. Beals and other mangers visited Japanese plants, as well as Honda's plant in Marysville, OH. There they learned that they were not being beat by automation or advanced manufacturing processes, but by a professional management team and motivated workers.
A Harley-Davidson motorcycle is more than just a mode of transportation or ordinary product. It's
During the 1970's, HD was facing a decline in market share due to increased competition with Japanese companies. By phasing out weak models, becoming more selective, and limiting sales and promotions, HD was able to carve out a niche in the marketplace which it enjoys today. Now again faced with a period of decline, HD is relying on its newly adopted marketing objectives. First, HD needs to expand its potential customer base to include enthusiasts and non-enthusiasts young males, and females into buying HD motorcycles over any other competitor. This thought is accomplished through the introduction of the VRSC’S, and the lower and narrow Sportsters, Dyna’s, Softail’s and positioning them in the market to a younger demographic. Secondly, HD needs to position the VRSC’S, Sporster, Dyna and Softail to also appeal to first time buyers of motorcycles. HD's strong brand identity can help pull in new clients.
Since Harley-Davidson is already a big player in cruise market, to be profitable in this sector might be time consuming and difficult for Ducati. Also, Harley-Davidson has a loyal customer base which might make it tougher for Ducati to attract more customers towards its side.
Same problems of expansion exist in the market of India. Uber is facing regulatory issues in the Indian market. Ola is another big competitor for Uber in the Indian market. These are the problems in Asian countries, facing by the Uber, one of leading company of Francisco. Uber needs to expand in international markets but is facing these issues and worried about its expansion results. Differences in the culture of these countries are also problematic for Uber for getting profits.
Harley-Davidson institutes a pull strategy in the promotion of the FXDS-CONV Dyna Convertible. Due to the limited number of dealerships (for example, there are only five in Nashville and the surrounding communities) customers must actively seek out a location to purchase this bike. Also, because so many customers decide to customize their Dyna Convertibles, they must place a special order with the dealer, who in turn must contact intermediaries along the distribution channel in order to satisfy the customer. Further, the fact that demand for Harley motorcycles far exceeds the supply indicates that a pull strategy is in place.
Every company has some kind of Revenue and they all have costs that are associated with running the company. It is also true that if a company wants to increase their Revenue, their costs will increase too. It is every company’s goal to maximize revenue and either through Production or Services, and minimize cost. These things are easy to figure out, but actually identifying the production and figuring out how it will increase or decrease with change is very difficult.
Honda, like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, Honda was already famous for motorcycles in UK, but it was less well known in terms of the automobiles. While Honda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Honda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.
Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson from the US and Mahindra & Mahindra have set up manufacturing bases in India. Furthermore, according to internal projections by Mercedes Benz Cars, India is set to become Mercedes Benz’s fastest-growing market worldwide ahead of China, the US and Europe.