Brief Information of Company Harley Davidson is one of the best motorcycle

producer in world. This company not only produce motorcycle but also produce boat, t-shirt, bag, leather Jacket ,helmet and kind accessories, etc. Thanks to selection HD ,their customer’s life style obvious that show their freedom.

History

History of Harley

1901–William S. Harley, age 21, completes a blueprint drawing of an engine designed to fit into a bicycle. 1903 – William S. Harley & Arthur Davidson (Walter) 1909 – First V-twin powered bikes, it became most enduring icons of Harley Davidson history.1917 – 1/3 rd of the bikes were sold to the U.S military, at last 20,000 HD bikes were used in World War I (1918).1920 – HD dealerships spread across 74 countries.1930–Bill Davidson, Jr. wins the Jack Pine endurance contest with 997 points of 1,000.

1943–Harley-Davidson receives the first of its four Army-Navy "E" Awards for excellence in wartime production. 1955–Harley-Davidson produces almost 60,000 WLA models during the war for military use. 1987 – Entered into American & New York stock exchanges.1998–A new assembly facility opens in Manaus, Brazil, the first operations outside of the U.S. 2001 – Two big plants constructed in Milwaukee & Kansas cities.2004–HD recorded its 19th consecutive year of record earnings 2009– Harley-Davidson announces expansion into India.2010–The XL Forty-Eight is introduced, recalling the raw, custom Sports of earlier days. Harley is the only major American Manufacturer of heavy weight motor cycles.Have more than 15,000 employees.

History of Harley

Values are the heart of HD business, they guide our actions and serve as the framework for the decisions and contributions our employees make at every level of the Company. Tell the Truth. Tell the Truth. Be Fair. Be Fair. Keep Your Promises. Keep Your Promises. Respect the Individual. Respect the Individual. Encourage Intellectual Curiosity. Encourage Intellectual Curiosity.

Values

Product extensions Motor Cycles Bike accessories Buell motor cycles:

wholly owned subsidiary of Harley by 2003 (closed now)

Brand extensions Merchandise• Helmet• Boats• Clothes (Jackets…) • Mugs• Collectibles….• Lighter• Watch Beer

Bars

This is Harley for men

Harley For Women

INTENSIVE STRATEGIESMarket PenetrationProduct Development Market Development

ORGANIZATIONAL CHART

EXTERNAL FORCES• Economic Forces• Technological Forces• Social, cultural, demographic, and natural

environment forces • Political, governmental and legal forces• Competitive Forces

Economic Forces

• HD is the largest manufacturer of heavyweight motorcycles in the world by market share, capturing half the U.S. market and a third of the global market

• As a luxury good, HD competes primarily on design and quality, rather than price, which keeps margins high; gross margin in 2011 is projected to be approximately 34%

• Harley Davidson announces a 73.5% increase in income in year-ago comparisons, totaling $119.3 million for the first quarter of 2011 Increases in income were driven by a 1.5% increase in revenue, totaling $1.22 billion for 2011

Technological Forces

• Computer-based inventory control systems could play a role in managing motorcycle inventories

• Technology also impacts design• Modern motorcycles also are relatively free of oil leaks,

vibration, and are more comfortable than those of the past • Communication across continents is easier and cheaper than

ever before because of computer-based inventory control systems

Social, cultural, demographic, and natural environment forces

• As aging couples with excess income are Harley Davidson’s target market, the aging population growth and income growth are good signs for the company

• The U.S. veteran population has increased by 1.1% , Veterans tend to be motorcycle owners so sign of market segment growth for Harley

• Motorcycles are mostly used during warmer months which are generally March through August in the northern United States and Canada so the motorcycles riders intend not to buy motorcycles until they can ride them.

• The United States has the greatest income inequality among developed nations ,This indicates a large (growing) potential market size for Harley Davidson as it is the leader in the Motorcycle market with about 50% market

• The changes in the lifestyle of the majority of youth population the world-over has resulted in an enhanced business for HD

Political, governmental and legal forces

• The Environmental Protection Agency (EPA) regulates automobile and motorcycle emissions

• Future revisions could negatively impact the motorcycle industry. Steel prices increased 57% and aluminium increased by 24%, so that the cost increases on to consumers, thus raising the price of the product

• The environmental protection laws create on additional pressure for companies

• Human resource legislation mostly in favour of the employees also does have an impact on the profitability of the company

• The internationalization of the business of the company is concerned the moving of production facilities to those locations

Competitive Forces

• Its main competitors are Honda and Yamaha based on their world-wide market share

• Harley’s competitors are more diversified, they are less vulnerable to industry changes

• Honda and Yamaha also offer products that sell well in the international markets compared to Harley

• Harley products are more expensive than its competitors, but are known for service and saleability

• Touring bikes have increased in popularity with each year. Victory, Honda, Suzuki, and Harley have expanded their touring line of motorcycles to cater to the aging market. Harley offers eight variations of the touring motorcycle

INTERNAL FORCES

• To determine HD’s strengths and weaknesses, an internal assessment is required

• Harley only has 7.7% of European market share (the second largest motorcycle market in the world), and 25.3%of the Asia/Pacific region

• Harley-Davidson’s strengths are in the U.S. market, as 80% of Harley’s net revenue comes from U.S. sales

• Harley was viewed as sub-par when compared to British motorcycles

• Harley has a reputation for style and quality

INTERNAL FORCES(con’t)

• Harley-Davidson also introduced water-cooled engines, fuel injection, and catalytic converters to improve exhaust emissions

• Harley’s strength in this area is largely due to its marketing abilities in the U.S. market

• Harley customers are extremely loyal to their brand and 90% of Harley owners intend to purchase another Harley

• Management information systems could be used to more effectively manage inventory at Harley .This is currently one of Harley-Davidson’s few internal weaknesses

PORTER Five Forces Analysis

Forces Strategic Significance

Internal Rivalry LOW-MODERATE

Threat of New Entrants LOW

Threat of Substitutes Products

LOW-MODERATE

Bargaining Power of Buyers LOW

Bargaining Power of Supplier

HIGH

Market share and financial analysis BALANCE SHEET

HD CASH FLOW

Harley-Davidson 46.40%Honda 20.20%Suzuki 9.80%Yamaha 9.30%Kawasaki 7.10%BMW 2.50%Other 4.60%

The following table details the market share by region:

North American Market Share

European Market Share

• Honda 21.00%• Yamaha 17.70%• BMW 15.10%• Suzuki 14.80%• Kawasaki 8.50%• Harley-Davidson 6.60%• Ducati 5.70%• Triumph 3.50%• Other 7.00%

Asia/Pacific Market Share

• Harley-Davidson 21.30%• Honda 19.10%• Kawasaki 15.80%• Yamaha 13.60%• Suzuki 10.10%• BMW 7.30%• Ducati 6.90%. Other 5.90%

World Wide Revenue

STRENGTHSCustomer retentionFinancial positionProduct selectionU.S.market shareU.S. dealer Network

OPPORTUNITIESIncreasing number of ridersU.S. industry growthAging populationAsian industry growth

THREATSUnion relationsAging U.S.populationCompetitor diversificationDeclining European growth Availability substitus

WEAKNESSESDealer inventory systemInternational market shareExpensive productProduct selectionInternational dealer

SWOT MATRIX

STAR PROBLEM CHILDREN

COW DOG

1.0 0.50 0.0 +30

Industry GrowthRate

-30

Relative Market Share

BCG Matrix

Harley-Davidson RELATIVE MARKET SHARE 48%

GROWTH RATE 13.029

Conclusion • Harley- Davidson have to change American culture and helped the future of motorized vehicles.

• Must implement latest technology & facilities.

• Loyal customers are not sufficient for company to survive.

• “it’’s a journey but not a destination”