Harley Davidson Case Analysis In 2007, Harley Davidson was the world’s most profitable motorcycle company. They had just released great earnings and committed to achieve earnings per share growth of 11-17% for each of the next three years. Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task seeing Harley’s domestic market share recently top off at just under 50%. The domestic market was where Harley’s achieved the most growth over the past 20 years and with it leveling off, where was Harley going to get the 11-17% was the million dollar question. Harley Davidson has built a brand that is more than just the spread eagle on a load rumbling motorcycle, but for those who purchase a Harley they are purchasing a lifestyle, an experience, or piece of American culture if you will.
The company has also outsourced its manufacturing processes to reduce the cost of production enabling the company to offer its products at better prices. In addition, the company is planning to introduce low cc motorcycles that are relatively cheaper as it endeavors to diversify. Harley Davidson future outlook is bright. Its decision to enter emerging markets presents growth opportunities as the income levels in these countries rise. An increasing number of people in these countries have sufficient to afford luxuries such as motorbikes.
The automaker recently revised 2016 guidance, increaseing its full year expectations 25 cents per share. General Motors is the largest of U.S. automakers and generates 35% of its revenue in North America. The company receives the remaining portion of revenues from global markets subject to currency risk from a strong U.S. dollar. This is a concern for GM as they must compete not only with U.S. automakers but also international car makers such as Toyota. That said, the company is positioned to benefit from its investments domestically, new product launches and partnerships.
EXECUTIVE SUMMARY Harley-Davidson is the largest market share holder of motorcycles over 750cc in the United States. After the expansion of our production and distribution capacity, we will be in the position to meet the increasing demand for our motorcycles and other products. Growth potential appears very good especially in the overseas market. Gaining a larger market share in these area may require a further increase in production and distribution capacities. We must plan for expansion now and continue to grow as a company.
The company’s motorcycles are uniquely designed – their designs along with exhaust notes are distinct. More so, they are noted for their being heavily customized; the customization brought about the chopper motorcycle style. Harley-Davidson as a brand has been and still does attract a loyal (brand) community, with the Harley-Davidson’s logo licensing accounting for approximately 5% of the net revenue of the company (41 million US Dollars in 2004). Its range of products in the United States is priced between 8,100 and 31,000 US Dollars. Annual sales for 2012 in total were 5.6 billion US Dollars, with net income at 624 million US Dollars, or 11% of the sales.
A growing company also means a higher price to obtain. The better-off test is anot... ... middle of paper ... ...ompany’s corporate strategy is to eventually enter into the other side of the recreational vehicle market and that could be achieved with the acquisition of Polaris. We are looking into opportunities to have strategic fit with a new company to make sure we have better competitive advantage. Here at Harley-Davidson, we do marketing differently and that includes giving people the experience to test drive our motorcycles so they can feel the experience of the ride. We are unconventional in our marketing concepts but it has proven to pay dividends.
In 1983, the company started to see growth in US market share of the leading motorcycle manufacturers. The company was able to grow due to the quality of the bikes being enhanced and production efforts being more efficient. Upper management also started what is called Harley Owners Group (HOG) to start the excitement between customers. This was a great way for the company to better its culture and give customers an opportunity to connect with each other and share stories. HOG eventually became a big success as the company continued to grow.
At that poi... ... middle of paper ... ...eature in the Softail line for 2001s Twin Cam 88b; carburetion was used on the previous Twin Cam 88 models. Buell Motorcycle is a production racing version of Harley Davidson, unique styling, and state of the art engine design offer riders both street and track an aggressive and powerful machine. FORBES MAGAZINE names Harley-Davidson Company of the Year (December 20, 2001) “Harley-Davidson, Inc. has been named Company of the Year by FORBES Magazine, one of the worlds leading business publications.” Key factors for the FORBES Company of the year award included Harley-Davidson’s record sales growth and earnings, along with strong overall financial performance. This is due to the great strides in engineering and development, along with the respect of the American people for an outstanding American company.
Thanks to GM, many of the popular vehicle brands that are available, they have produced. You can understand how vital GM has been to the automotive world when you find out that “it was the world’s largest car maker from 1931 to 2008, when it was surpassed by Toyota” (Costantini). The history of GM dates back to 1908. At this time or to be more specific on September 16, GM was founded in Flint, Michigan, by William C Durant (General Motors Company, 2011). The company started as Durant-Dot Carriage Company which started in 1886 and by 1900 was producing over 100,000 carriages a year (Flint).
Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete. Harley-Davidson, the corporation, has many things to brag about. On top of their financial success over the years, they have built a solid reputation as a fair, honest, and caring company. In January 2002, Forbes magazine named Harley-Davidson its “Company of the Year for 2001and in February, Fortune magazine selected them as one of the nation’s “Most Admired Companies.” Every employee at the company can be proud of these achievements because the corporate culture stresses the importance of all employees. While maintaining a level of success in these areas, they have managed to increase their revenues for the last sixteen years straight.