By 1914 the Postal Service had more than 4,800 Harley-Davidson motorcycles in its transportation fleet. By the time World War I was over, Harley-Davidson had become the largest motorcycle manufacturer in the world, and its motorcycles could be bought from more than 2,000 dealers in 67 countries worldwide. Overtime, Arthur Davidson gradually removed himself from the business operations and spent more time on his other work. He established a trust fund and donated land for a Boy Scout camp and supported a Wisconsin home for the blind. When Davidson died he left behind a motorcycle empire and a publicly traded company worth over $10 billion.
While maintaining a level of success in these areas, they have managed to increase their revenues for the last sixteen years straight. Even in the economic downturn of the last year, Harley-Davidson posted record revenue and earnings. Harley-Davidson states their mission as “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments.” They have performed wonderfully over the past hundred years, and have not forgotten their mission or where they came from. Over the years they have stuck with the things they know, and also expanded into related services and products. Out of the 151 motorcycle manufacturers, Harley-Davidson and Indian were the only two companies to survive the Great Depression.
Harley-Davidson Inc. founded in 1903 and produced most of its motorcycles to be sold to the US military during World War 1. In 1953, Harley-Davidson became the only US motorcycle manufacturer for the next 46 years (Harley Davidson Museum). In 1988, Mr. Richard Teerlink was appointed the Chief Operating Officer of Harley-Davidson Inc. until 1997 (Bloomberg). Mr. Teerlink started with Harley around 1981 as VP and CFO of Harley, which was when the company was trying to reshape its corporate culture. This was a time when the company was facing serious competition from Japanese motorcycle manufacturers like Honda, who were continuing to take up US market share since the 1960s.
Introduction Harley-Davidson, Inc. (NYSE: HOG, HDI formerly) is one among the top heavyweight motorcycle manufacturers worldwide. It manufactures heavy motorcycles and is US-based (Milwaukee, Wisconsin to be exact). Harley-Davidson is a parent company of a group of companies – inclusive of the Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company makes sales of over 750cc class motorcycles made for cruising on highways; it offers over 30 models of motorcycles for touring alongside custom-made Harleys via a network spread across the world comprising over 1,600 dealers across 6 continents. The company’s motorcycles are uniquely designed – their designs along with exhaust notes are distinct.
The first Desmo Ducati was the very successful 125cc Gran Prix bikes of the late 1950s. These bikes were runners up in the 1958 World Championship. (Wilson 92) Ducati was building single cylinder bikes with shaft driven camshafts for fifteen years, when the company decided to move into the bigger bike market. The 750 went on sale in 1971, and a sports version appeared the following year. Later the capacity was increased to 900cc.
Harley Davidson had shown and brought great accomplishments to the table in its history as a very notable motorcycle manufacturer, wholesaler, and reproducer since the early 1900’s. In the early years of its time, the market accounted for 70% of all bikes sold that were bought from Harley Davidson. During the 1960’s, the invasion of Honda started to take its toll on the market of Harley Davidson here in the United States. Honda instituted a strategy that focused the approach directly on the new customer satisfaction toward a new customer. This would lead to multiple reactions, different motorcycles being made, and lastly a whole new way of marketing towards the customers’ demand and target market.
1. COMPANY OVERVIEW Harley Davidson Inc. was found in 1903 by William S. Harley and Davidson brothers- Walter and Arthur. Since then the company has produced the most recognized motorcycles in the world. The company has been named to Fortune’s list of “100 Best Companies to work for”. The company has also been ranked #3 in automotive quality behind Rolls-Royce and Mercedes Benz by Harris Interactive, a worldwide market research and consulting firm.
During his tenure as a CEO, records of revenue and earnings increased. All this was through new development of products, upgrades in technological advances, strengthening a dealer network, and lastly a close to the customer marketing. Through all these initiatives, Harley Davidson continues to be one of the best American manufactured Motorcycle
He later withdrew from the venture after a disagreement with business associates over numbers and prices of cars to be produced. Working independently in a small shed in Detroit, Henry Ford developed two four cylinder, 80-horsepower race cars called the “999” and the “Arrow”, with $28,000 of capital raised from friends and neighbors. Henry Ford established a new shop on June 16, 1903. In this facility the Ford Motor Company began production of a two cylinder, eight-horsepower design called the Model A. The company produced 1,708 of these models in the first year of operation.
SITUATION ANALYSIS The motorcycle market over 750cc has been increasing over the last five years. The Harley-Davidson 1996 model year production line, sold though a world wide network of more than 1,000 dealers, includes 20 cruiser, factory custom and touring motorcycles, as well as police motorcycles. Harley-Davidson benefits form having one of the world’s most recognized and respected brand names and our motorcycle model names are among the best known in the industry: The Competition and Market share This chart shows the competition and market share for 1995 in the United States: Current Market Situation Overall Net sales for 1995 of $1.4 billion were $191.6 million, or 16.5%, higher than net sales for 1994. Net income and earnings per share from continuing operations were $111.1 million and $1.48, for 1995 as compared with $96.2 million and $1.26, for 1994. Net income and earnings per share from discontinued operations were $1.4 million and $.02, for 1995 as compared with $8.0 million and $.11, for 1994, which included a $4.6 million, or $.06 per-share, one-time tax benefit related to the legal reorganizat... ... middle of paper ... ...Harley-Davidson dealerships), bringing the year-end total to approximately 150.