Founded : 1903 Founders : William S. Harley, Arthur

Davidson Headquarters : Milwaukee, Wisconsin CEO : Keith E. Wandell Revenue :  $4.29 Billion (FY 2009) $798.8 million(3rd quarter 2010) Market Share : 33% Worldwide Competitors : Honda , Suzuki ,

Yamaha , KawasakiIndia Market Corporate off. : Gurgaon Registered off. : Barakhamba road,New

delhi

HARLEY-DAVIDSON MISSION STATEMENT "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." 

History speaks

1901 William S. Harley, age 21, completes a blueprint drawing.

1903 William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson motorcycle.

1905 Harley-Davidson motorcycle wins a 15 mile race in Chicago with a time of 19:02.

1918 almost all the Harley-Davidson motorcycles produced are sold for used by the U.S. military in world war 1.

Continue…

1920 Harley-Davidson is the largest motorcycle manufacturer in the world.

1922 Harley-Davidson riders sweep all eight National championship races.

1933 an art deco “eagle” design is panted on all gas tanks.

1936 introduces ‘knuckle head’. 1941 production of civilian motorcycles is almost entirely

suspended in favor of military production. 1952 launched sportster. 1969 HD mergers with the American machine and foundry

company(AMF), a long time producer of leisure products. 1971 A new class of motorcycle, the cruiser, is born .

Continue…

1981 13 executives leveraged buyout (LBO). Struggled under heavy loans.

1982 the materials as needed (MAN) application is introduced to production. This dramatically lowers the production costs and improves quality.

1992 joint venture with Buell. 2003 more then 250,000 people come to

Milwaukee for the final stop of open road tour and the HD 100th anniversary celebration and party.

Competition in Global motorcycle industry

Rivalry criteria- performance, styling, breadth of product line, image, reputation, quality of after sales services, price.

Low price by the Japanese company like Suzuki, Honda ,BMW,Yamaha,Kawasaki

Product Range Dealer's Reputation and knowledge

Regulations and legal challenges

European parliament and European countries reduce pollutant by 60% after 2003 & more 60% after 2006.

U.S. producer are subject to certification by environmental protection agency (EPA).

California air resource board (CARB)- new tailpipe emission standards.

Safety standards, Health Insurence Quality Standards

Harley Davidson’s strategy for competing in motorcycle industry

After Leverage Buyout, repositioning began

Focused on product quality Introduced pilot program Formation of Harley Ownership Group Created an image of lifestyle for biker Associated itself for the law abiding riders Introduced Buell model to lure young

bikers Establishment of Harley-Davidson

University

Tarnish Brand image of HD

HD bikers Daytona & Sturgis Rally in late 1930’s Indecent behavior, public exposures, drunkenness,

etc Rowdy, rebellious, outlaw image of bikers were

formed Different such small clubs of rowdy bikers formed

across US who rode only HD(Hells Angels, Sturgis ,etc)

Honda leveraged the tarnishing image 1969 Movie “Easy Rider” portrayed bikers as less

villainous Print ads and campaigns help improved the image

of HD riders

.

Cost leader Differentiation

Cost focusDifferentiation focus

Lower cost

Narrow target

Broad target

Differentiation

DIFFERENTIATION STRATEGYTANGIBLE :Low tech , premium priced, high quality, heavyweight engines, innovation , Expanded line of exciting motorcycles(standard, performance, custom, touring)

INTANGIBLE : 1. Aura created of distinct image, lifestyle & adventure- Rugged American Individualism2. Strong Brand Identity

The SWOT analysis

Strengths Heavyweight engine Innovative design & product features Strong Brand Equity Financial Strengths Strong brand loyalty and HOGs Strong distribution network

Weaknesses Over leveraged financial position Competency only in Heavyweight motorcycle

segment Maintaining the cost differential between low-cost

competitors and HD Lack of appeal to young riders

Swot continued….Opportunities The international heavy weight market is growing and is almost as the

U.S. heavy weight market. Alliances with other automobile manufactures are possible. Market share increasing in Europe and Asia for the two years. Increasing demand in U.S. markets for bikes. Product and services expansion

Threats

Harley ongoing capacity restraints caused a shortages supply and a loss in domestic market share in recent years.

Baby boomers who are the potential buyers are aging The European Union’s motorcycles noise standard are more stringent

then those of environmental protection agencies in the U.S. and increases environmental stand.

Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.

Shift in buyer need and tastes. Cost could become expensive from international importing- for example

in India 60% tax on total cost for importing an automobile and 30% road tax.

And the great story on Earth continues it’s majestic journey………….

Thank you