Response To Globalization: Harley-Davidson: Response To Globalization

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Harley-Davidson: Response to Globalization
Despite its image as a quintessential American company, Harley-Davidson (HD) has been an international company since shortly after its founding in 1903. In 1912, HD began exporting to Japan; eight years later in 1920, it was the world’s largest motorcycle manufacturer with 2000 dealers in 67 countries (Gardiner, 2014). Beginning with their dealings in Japan HD has had to navigate the hurdles associated with international trade, including having a major export market (Japan) on the opposite side of a war. With HD looking to expand in foreign markets as a growth strategy, it encounters additional obstacles to market entry in each country.
Harley Davidson’s International Business Environment
Economic, …show more content…

The concept of recreational riding is new to the Chinese; therefore, HD has had to promote leisure riding to move their heavyweight bikes. Toward this end, HD established its Harley Owner Group (HOG) chapters in Beijing, Chengdu, Qingdao, and Shanghai; these owners clubs sponsor rallies and bike rides that promote leisure riding (Miller, 2012). Furthermore, they cooperate with local governments when planning their rallies, demonstrating benefit to the community and instilling confidence in Harley.
Political
As mentioned earlier Harley Davidson has dealt with the international political environment since the 1930s when Japan its chief foreign market became increasingly military, ultimately opposing the allied powers in WWII. It still faces political challenges today though not as severe.
When considering entry to China piracy was a concern. Thus, HD serves China as an import market rather that producing motorcycles inside China. In country manufacturing would reduce costs allowing greater market penetration but at greater risk of counterfeit …show more content…

Customers often brand their clothing, automobiles, and themselves with the familiar Harley eagle logo. Through the HOG chapters, HD sells the adventure as much as the bike which makes cutting into HDs market share difficult for foreign competitors (Cavusgil, Knight, & Riesenberger, 2014).
In the U.S., Harley is best known for its heavyweight touring and cruiser motorcycles. However, in Europe there is demand for high-speed, high performance motorcycles that can navigate their higher speed limit highways. In Europe, HD sells a more diverse line of motorcycles to meet the markets demand (Cavusgil, Knight, & Riesenberger, 2014).
HD is reducing production cost for motorcycles by moving some production offshore. In India, a low cost manufacturing center, HD is building bikes for the Indian and European markets. Similarly, assembling motorcycles inside Brazil reduces cost for that market (Harley, 2014).
Conclusion
Harley-Davidson has weathered difficulties in international business from almost its beginning. It is positioning itself to compete in foreign markets using analysis of the cultural, economic, and political environment of the markets it is seeking to enter. By diversifying worldwide HD is reducing the risk inherent when operating in a single

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