Case Study Presentation Presented By Najam us Saqib[BT – 02 – 01] Shoaib Javed[BT – 02 – 24] Ghazal Zaheer [BT – 02 – 44] Ahtasham Rizvi [BT – 02 – 47]

Case Study Presentation

Presented By

Najam us Saqib [BT – 02 – 01]

Shoaib Javed [BT – 02 – 24]

Ghazal Zaheer [BT – 02 – 44]

Ahtasham Rizvi [BT – 02 – 47]

BBA – IT (6th Semester)

2002 – 2005

Institute of Management Sciences

BZU - MULTAN

Harley DavidsonConducting Business Electronically

Introduction To

Harley DavidsonMission & Vision StatementsTime Line (The Ups & Downs)

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Mission & Vision Statements

• Mission

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

• Vision

– To continuously improve our mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, governments and society)

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Company Profile

• Works harder to build genuine relationships with their customers

• Has created loyalty through a pattern of steadfast interactions with its customers

• Reinvents the customers’ experience in ways that would strengthen the sense of affiliation that the customer has with the products and services

• Our values are the heart of how we run our business– Tell the Truth

– Be Fair

– Keep Your Promises

– Respect the Individual

– Encourage Intellectual Curiosity

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Company Profile

• Since going public in 1986, Harley has increased earnings at an average annual rate of 37 percent

• Without the shadow of any doubt, HARLEY DAVIDSON is a brand that has achieved cult status and outstanding financial performance

• That's what makes the story of Harley-Davidson so interesting. We want to know how they got there. And the answer is not in one story but in three.

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The 3 fascinating Stories!

• Beginnings & Survival– 1903: William Harley & Arthur

Davidson started the company[ output only 1 Motorbike ]

– 1909: introduced its trademark bike; a 2 cylinder, v-twin engine (the fastest motorcycle at that time)

– 1910: Sold 3200 Bikes [since 1903]

– 1917: brought World War I to the United States and Harley sold twenty thousand motorcycles to the U. S. Army

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• Beginning & Survival (cont.)– 1920: Depression in economy hit everybody hard but it

devastated motorcycle companies

• Two companies, Harley-Davidson and an Indian, manufacturing motorcycles in the United States survived. [Total motorbikes sold that year total 6,000 ONLY]

– 1939 To 1945: World War II revitalized Harley's fortunes. The company sold almost 100,000 of their WLA model to the US military

– 1947: Introduced the classic black motorcycle jacket. It was the start of the Wild One Era and Harley's second story

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• The Wild One Era– 1947: That same year a gang of motorcyclists rode into the town

of Hollister, California and simply took it over (On Harleys). The police lost control and the motorcyclists ran amok. Even the law could not stop the two-wheeled warriors.

– 1962: Honda began importing its smaller and light motorcycles into the United States

• And stated: Our bikes are for the nice people, not outlaws. They told their story in one of the most effective advertising campaigns of all time, "You meet the nicest people on a Honda."

– 1969: American Machine and Foundry (AMF) bought Harley

• Those days, managers believed that they could manage any kind of company even without knowing much about the business. That's where third story begins.

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• The Near Death Experience

– Competition was hurting sales and the Harley was in hands of immature management. Harley faced bad quality management

– 1981: 13 senior executives of the Harley-Davidson Motorcycle Company signed a letter of intent to buy the company from AMF

– The company then put in a restructured plan, incorporating management principles adopted from the Japanese, new marketing strategies, and manufacturing techniques [That’s where things started getting changed]

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• The Near Death Experience (cont.)– 1983: Harley introduced the Harley Owners Group (HOG)

– 1986: The company went public

– 1987: Got listed in New York Stock Exchange

– 1995: Jumps into E - Business

– 2000: Re-established independence from AMF

– Today, Harley has not only improved quality and won the long battle to regain its market share but has also achieved cult status with customers

– Their customers simply think it is not only the greatest motorcycle in the World but the greatest vehicle

The New Business Model

Change in Business Methodology

H-D in E – Business: The Success Continues

Financial Performance

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Restructured Business Model

• BANKRUPTCY KNOCKS!– Transformation is the Answer!

• Restructuring Plan by CEO Richard Teerlink

• Extending the Plan- jumping into E – Business

• Major objectives of the E – Business dimension– Solving warranty claims problems

– Employ Direct Marketing Strategy

– Gathering 1300 dealers on a single platform [ B2B ]

– Moving with time: Adopting new technologies [ Proactive EC ]

– Customer Relationship Management

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Transformation: E - Business

• Revolutionized marketing procedures• Gained company good will by fulfilling customers’

warranty claims– Previously claims handling took more than a week

– Now only 2 days

• Helped to refine Manufacturing Process [JIT]• Helped in cutting down the Marketing and

Operational costs

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E - Strategy

• Diverse features and services on its website• Efficient on-line purchase

– Purchase! round the clock, round the globe

– HD Credit Card

– HD online memberships

• Universal client capability • Building an HD culture by creating community of

customers

And all this contributed to pull through the leader position of Harley-Davidson in Bikes industry

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EC Benefits: CRM

• Customization & Aftermarket– Every Harley bike is extensively designed keeping in view the

ideas, requirements and enthusiasm shown by the consumer

– HD always wanted customer to get involved in product design that gives consumers a sense of individuality and freedom of expression

• Pride & Proximity– HD community gives customers a sense of pride

– Sending Gifts to the strengthen relations and friendship

– HD Gatherings & Events

• Customer E – Loyalty– CRM basically enabled the company to grasp the individuality of

customer in much more easy and efficient manner a reason to stay loyal to HD

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EC Benefits: Financial Growth

Sales

-Notice the slope of 1985 – 1995 and 1995 – 2005

-Harley made debut to E – Business in 1995

Net Income

-Notice the slope of 1985 – 1995 and 1995 – 2005

-Harley made debut to E – Business in 1995

-Reduction in Operating and Advertising expenes

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HD Relations: Investors

StockStock PriceStock Split InfoH-D vs. S&P 500Stock TrackerStock Lookup

FinancialsAnnual ReportsFinancial StatementsSEC FilingsCapital ExpendituresFinancial Factbook

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HD Services: Career Development

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HD Services: Rentals & Tours

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HD Culture: Events & Racing

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Business to Business

• HD Authorized Dealers– The symbiotic relationship

– HD provides the virtual interface of dealers while dealers provide the physical interface of the company

– HD has gathered 1300 dealers under the umbrella of one HD site

– From becoming a dealer to being a triumphant dealer

• Major Buyers– The Fire & Police Department buy HD fully loaded bikes in bulks, customized

according to their operational requirements.

– Special POLICE and Fire Fighter accessories

• Speed Guns

• Sirens

• Special Lights

• Speed Boosters – A real need while on an emergency mission

• Fire Extinguisher

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Harley Davidson: Police

• The Law Enforcer!

• Catch the bad guys out there in streets!

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Harley Davidson: Fire Fighters

• Help protect from Fire!

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Harley Davidson: Cop Training

• Training the Cop for perfection!

Products & Accessories

Harley Dream Bikes

Harley Motor Clothes Merchandise

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Products & Accessories

• Five categories of Dream Bikes

– Sporster

– Dyna

– VRSC

– Softail

– Touring

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Harley Davidson: Sportster

• The ULTIMATE FUN!

• Lighter and Sportier than most Harleys

• Length: 88 inches

• Weight: 500 lbs app.

Price: around $10,000

Rs. 6 Lacs Pak.

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Harley Davidson: Dyna

• This classic Harley chopper


• Weight: 630 lbs

Price:$13,000 to $18,000

Rs. 8 Lacs To 11 Lacs

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Harley Davidson: VRSC

• Cool H-D!

• Your companion on Special Adventures!


• Weight: 600 lbs

Price: $19,000

Rs. 12 Lacs

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Harley Davidson: Softail

• The bad guy partner!

• Watched Terminator 2? Yes? Must be knowing Softail!


• Weight: 650 lbs

Price:$14,000 to $19,000


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Harley Davidson: Touring

• The Travel Partner! Take every thing along you!


• Weight: 800 lbs

Price:$19,000 to $24,000


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H-D : Touring – Interior

• Front

– Cassette/CD/MP3/AM/FM Player

– Wind Protection Screen

– Enhanced Speed Dials & Meters

• Back

– Comfortable Seat

– Seats with Heating Capabilities

– Back Trunk Panel

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Harley Davidson: Accessories

The Company’s Website!

Introduction to The Store Front

&

Purchase Procedure

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Website: Main Page

• Click on a country

• Doing so, will let you see the information pertaining to that country

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Website: Store Front

• Loaded with latest information and news

• Lets you navigate through various sections of the site

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Purchasing: Plan!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: View!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: View!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing : View!

• View the bike through different angles

• Have a 360o view!

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Purchasing: 360o View of Bike

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Purchasing: Features!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Specifications!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Compare!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Colors!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Genuine Motor Parts


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Do The Numbers!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Need Financing?


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

Purchasing: HD is there!

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Purchasing: HD is there!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Contact Dealer!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Find Dealer!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Find Dealer!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: There You Are!


– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: There You Are!

Website

Dealer

Various Queries

Customer

Various Information

Contacts

Product

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Purchasing: General Accessories


– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just checkou

– Fill in your billing information

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– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just checkout


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– Find E - Dealer

– Choose Product

– Add to Cart



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– Find E - Dealer

– Choose Product

– Add to Cart



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Process Flow

Website Dealer

Product Info. & Credit Card

Info

Email for Order Received Notification

Product

Email to notify order delivery

Order forwardedCustomer

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• A classic success story that captured the markets by the virtue of E – Business.

• But what makes HD case special is that the company was struggling for recovery from its bad era and E-business shored them up

• HD management has shown a great deal of determination to let the company hit the sky right from the bottom line

• While we can’t neglect that E-business was a mere extension of Richard’s RECONSTRUCTION PLAN (1985), it is interesting to find that although plan worked well right from the implementation and business started growing on financial charts in the first decade (1985 – 1995) but that the real pace was gained during the second decade (1995 – 2005) when the company moved to E – Business

• So, we can see how E – commerce infuses the speed of internet into a business

Conclusion

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Thank You!

• References– Harley-Davidson at One Hundred: An American Story By Wally Bock

– Case Study on Harley-Davidson By Josef Schinwald

– Harley-Davidson Business Practices By Reginald A. Bruce

– Harley Davidson Review By “How Stuff Works”

– Annual Report of Harley Davidson By Company Website

– Various Links from the Company’s Web

Documents

Case Study Presentation Presented By Najam us Saqib[BT – 02 – 01] Shoaib Javed[BT – 02 – 24] Ghazal Zaheer [BT – 02 – 44] Ahtasham Rizvi [BT – 02 – 47]