"Harley-Davidson. Troubled Times Increase Business Case Study

Case Study: Harley-Davidson
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Case Study: Harley-Davidson
Case Overview
Harley Davidson is a leading American company that manufactures motorcycles. The firm was founded in 1903, and it has over 100 years of experience. However, in 2009 the company altered its strategy which slashed annual sales. The manufacturer made some tactical errors as well. Harley Davidson provided loans for motorcycles which resulted in a high default rate. Consequently, thousands of motorcycles entered the marketplace at a bargain price. In 2008, the company laid off 1500 employees as a result of a decrease in domestic profits, and sales. Though, international sales improved by 28 but domestic sales dropped by 25 percent.
The engineering and quality of H-D bikes are excellent, and people like to buy its motorcycles, while its traditional bikes lag in technology, as compared to rivals. In 2008, heavy bikes established 55 percent of the motorcycle market in the United States. The manufacturer faces diverse challenges in balancing the availability of motorcycles in order to increase markup for dealers and itself. H-D Company has transferred approximately 20 percent production of traditional motorcycles offshore (Bronson & Kuchan, n.d.). The objective of using this strategy is to ensure that the supply of bikes will favor domestic dealers.
Furthermore, the policy was not written, and H-D broke its policy by exporting 22 percent productions. Gain share in the European market is challenging, and the firm's market share floats around 10 percent. When it comes to the national and regional level, European differs in their preferences. Harley Davidson signed an agreement with China’s Zhongshan Motorcycle Group for developing the market in China. In the Chinese market, the biggest problem is that trade barriers and motorbikes were banned from the major portion of Beijing in 2006 (Bronson & Kuchan, n.d.). Nevertheless, the strong market for H-D motorcycles in New Zealand, and Australia.
According to HD, competition in heavy motorcycles is based on a few factors such as quality, price, reliability, customer preferences, styling, and product features. The company takes care of all these factors in order to successfully compete with its rivals. The main competitors of the company have headquarters from outside of the USA. Rival companies are operating units of large diversified firms such as Yamaha, Suzuki, Honda, BMW, and Kawasaki. The motorcycle manufacturer also faces competition from different brands in the United States such as Big Dog and Polaris. Though, some competitors such as Ducati sell performance, design, and style.
Moreover, in 2007, the H-D company was forced to control manufacturing in order to avoid an oversupply of bikes. The premium pricing strategy of the firm limits young buyers. The company has redesigned its bikes to facilitate female bike riders. The percentage of female buyers has reached 12 percent, and it is expected to increase. In 2008, HD’s strategy comprised of three objectives such as attaining funds, investment in HD brand, and reducing cost (Bronson & Kuchan, n.d.). Apart from that, the company provides a friendly environment and involves employees in ...