Abhishek Mishra ISBE a SS 10 12 Harley-Davidson

8/3/2019 Abhishek Mishra ISBE a SS 10 12 Harley-Davidson

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By:Abhishek MishraISBE-A/SS/10-12IIPM, Ahmedabad


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Mission:We fulfill dreams through the experiences of motorcycling, by

providing to motorcyclists and to the general public anexpanding line of motorcycles, branded products and servicesin selected market Segments.

Vision:Harley-Davidson is an action-oriented, internationalcompany, a leader in its commitment to continuouslyimprove [its] mutually beneficial relationships withstakeholders (customers, suppliers, employees, shareholders,

Government, and society). Harley-Davidson believes the keyto success is to balance stakeholders interests through theempowerment of all employees to focus on value-addedactivities.


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History:y Harley-Davidson or H-D or Harley is an American

motorcycle manufacturer founded in Milwaukee,Wisconsin during the first decade of the 20th century.

y It was one of two major American motorcyclemanufacturers to survive The Great Depression .

y In 1901, William S. Harley, age 21, drew up plans for a smallengine with a displacement of 7.07 cubic inches (116 cc)and four-inch (102 mm) flywheels. The engine wasdesigned for use in a regular pedal-bicycle frame. Thiscouldnt run on steep hills.

y

Work immediately began on a new and improved second-generation machine. This first "real" Harley-Davidsonmotorcycle had a bigger engine of 24.74 cubic inches (405cc) with 9.75 inches (25 cm) flywheels weighing 28 lb (13kg).


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Clockwise from top left: William S. Harley,William A. Davidson, Walter Davidson,Sr., Arthur Davidson


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1907 Model


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Harley-Davidson 1000 ccHT 1916


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y In 1917, the United States entered World War I and the

military demanded motorcycles for the war effort. Harleyshad already been used by the military in the Pancho VillaExpedition but World War I was the first time themotorcycle had been adopted for combat service. Harley-Davidson provided about 15,000 machines to the military

forces during World War I.

y By 1920, Harley-Davidson was the largest motorcyclemanufacturer in the world. Their motorcycles were sold bydealers in 67 countries. Production was 28,189 machines.

y In 1921, a Harley-Davidson, ridden by Otto Walker, was thefirst motorcycle ever to win a race at an average speed ofover 100 mph (160 km/h).


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Harley-Davidson 1200 cc SV 1931


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The Great Depression:y The Great Depression began a few months after the

introduction of their 45 cubic inch model. Harley-Davidson's sales plummeted from 21,000 in 1929 to3,703 in 1933. Despite those dismal numbers, Harley-Davidson proudly unveiled its lineup for 1934.

y In order to survive the remainder of the Depression,the company manufactured industrial power plants

based on their motorcycle engines. They also designedand built a three-wheeled delivery vehicle calledthe Servi-Car, which remained in production until1973.


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Servi-Car


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The First Expansion:yIn the mid 1930s, Alfred Rich Child

opened a production line in Japan with

the 74 cubic inches (1,210 cc) VL. TheJapanese license-holder severed itsbusiness relations with Harley-

Davidson in 1936 and continuedmanufacturing the VL underthe Rikuo name.


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WorldWar II:y One of only two American cycle manufacturers to survive

the Great Depression, Harley-Davidson again producedlarge numbers of motorcycles for the US Army in World

War II and resumed civilian production afterwards,producing a range of large V-twin motorcycles that weresuccessful both on racetracks and for private buyers.

y Harley-Davidson, on the eve of World War II, was alreadysupplying the Army with a military-specific version of its

45 cubic inches (740 cc) WL line, called the WLA.y Harley-Davidson received two Army-Navy E Awards, one

in 1943 and the other in 1945, which were awarded forExcellence in Production.


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XA model

WLC for theCanadian military


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Restructuring andRevival

y In 1981, AMF sold the company to a group of thirteeninvestors led by Vaughn Beals and Willie G. Davidson for$80 million.

yInventory was strictly controlled using the just-in-time system.

y In the early eighties, Harley-Davidson claimed thatJapanese manufacturers were importing motorcycles intothe US in such volume as to harm or threaten to harmdomestic producers. After an investigation by the USInternational Trade Commission, President Reaganimposed in 1983 a 45% tariff on imported bikes and bikesover 700 cc engine capacity. Harley Davidson subsequentlyrejected offers of assistance from Japanese motorcyclemakers.


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Buell Motorcycle Companyy Harley-Davidson's association with sport

bike manufacturer Buell Motorcycle Company began

in 1987 when they supplied Buell with fifty surplusXR1000 engines.

y Buell continued to buy engines from Harley-Davidsonuntil 1993, when Harley-Davidson bought forty-nine

percent of the Buell MotorcycleC

ompany.y Harley-Davidson increased its share in Buell to ninety-

eight percent in 1998, and to complete ownership in2003.


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2005 Dyna Super Glide Custom

2002 Sportster 883Custom

2002 Softail Heritage Classic.

2003 Harley Davidson XL1200Custom Anniversary Edition


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Harley-Davidson offers factory tours at four of itsmanufacturing sites, and the Harley-Davidson

Museum, which opened in 2008, exhibits Harley-Davidson's history, culture, and vehicles, including

the motor company's corporate archives.


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Harley-Davidson culture


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Idris Mootees Brand Life Cycle forHarley-Davidson


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Product Life Cycle:


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Brand Segmentation:

y

SensoryySociable

yWorriers

yIndependent


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Market Penetration Product Development

Market Development Diversification

Present New

Markets

ProductsAnsoffMatrix


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Financial

Objectives > TargetsMeasures > Initiatives

Strategy

Learning and GrowthObjectives > TargetsMeasures > Initiatives

Customers

Objectives >TargetsMeasures > Initiatives

Business Processes

Objectives > TargetsMeasures > Initiatives

The Balanced Scorecard


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Three Ways in which Companies Formulate their Strategy

Strategy

An integrated set of actionsdesigned to create sustainable

advantage over the competitors

StrategyThinkingC

reative,Entrepreneurialinsight into acompany, its

industry and itsenvironment

Formal StrategicPlanning

Systematiccomprehensiveapproaches to

developingstrategies

OpportunisticStrategicDecision

MakingEffective

responses tounexpected

opportunitiesand problems


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Competitor ResponseProfile

Objectives Strategy

AssumptionsResources

andCapabilities

What drives the Competitor ?What the competitor is doingor is capable of doing ?


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EnterpriseCSFs

Industry CSFsDeliver On-TimeService.Implement Hub-and-spoke system effectively.Monitor the legal andregulatoryenvironment.

Peer CSFsContinually ReduceCost Per Passenger Mile.Attract MergerOpportunities.Increase Code SharePartnerships.

Environmental

CSFsEnhanceRelationships with newLabor Leadership.

Temporal CSFs

Enhance Brand Image.Address Decrease inCustomers due toSecurity Issues.

Management CSFs

Optimize CrewUtilization.Manage Budgets.

Example of Critical Success Factors (CSFs) acrossPrimary Resources


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Register Order

Manufacture Product

Stock Management

Generate Orders To Providers

Customer

Provider

Just In Time Strategy


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Target

CustomerIntended

Positioning

Product:VarietyQualityDesign

FeaturesBrandNamePackagingServices

Price:List PriceDiscountsAllowances

PaymentPayment PeriodCredit Terms

Promotion:

AdvertisingPersonalSellingSalesPromotionPublic

Relations

Placement:ChannelsCoverageAssortmentsLocationInventory

Logistics

Target Customer IntendedPositioning


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StrategyRecommendation and Implementation:

Market Penetration:y Get some more market share from the existing market, like U.S,

U.K, and Japan etc through more marketing techniques like

advertising. Harley-Davidson has a good brand name so its easyfor them to eat up the competitor market share if they canprovide some more customer benefit.

y Competition is high in this segment mostly in U.S so marketpenetration can be a good choice for the company.

y Expand the HOG (Harley Owners Group) to Asian countries, ifthe company can provide the customer satisfaction that they areproviding to the U.S customers to the Asian customers they canincrease the sales.


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Product Development:

y Younger generation and female are now coming to this segment so

expand the motor cycle segments to younger generation and females.y In Europe they can increase or expand the Buells market share by

introducing new motorcycles.

Market Development:y Harley-Davidson can bring in their vehicle to Asian countries like India

and China, because these countries have a high population and themarket potential is also high.

Diversification:y Bring in new vehicles to new markets like India and China which is a

good choice.

y New types of recreational vehicles is the best choice.


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Thank You.Any Questions ?

Abhishek Mishra ISBE a SS 10 12 Harley-Davidson

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