Ann Steward

FROM BIRTH TO MATURITY

First Motorcycle
Made in the Davidson shed
Three-horsepower engine

1909
Introduction of the V-twin engine
(unique sound)

1953
Harley is the sole surviving motorcycle producer
(out of 150 other producers since the year 1910)

1903
Harley-Davidson is founded by

William Harley
William Davidson
Arthur Davidson
Walter Davidson

REBIRTH & HEAVYWEIGHT

MARKET
1981-1982
Harley lost over $60 Million in revenue due to recession

Incorporated the JIT system MAN

Included MAN
After converting, market share grew to over 30% in 1986
and over 60% in 1990

Pushing Honda aside in Japan

Heavyweight bike leader with over half the market share

Heavy-weight
Motorcycles:
Cruiser
Touring
Performance

MISSION STATEMENT:

Fulfilling dreams of personal freedom is more than a

phrase. Its our purpose and our passion. We bring a
commitment of exceptional customer experiences to
everything we do from the innovation of our products
to the precision of our manufacturing culminating with
our strong supplier and dealer networks. We are
Harley-Davidson.
Mentions Harley experience- a critical competitive
advantage
Encompasses whole business cycle, from R&D to
selling final product
Acknowledges that customer loyalty is one of the
strongest assets for Harley-Davidson, Inc.

STRATEGIC OBJECTIVES
SUSTAINABILITY
HOG Lifestyle

GROWTH
Market expansion, appeal to Gen X and Gen Y
LEADERSHIP DEVELOPMENT
Expanding overseas, developing new bikes for new
markets
CONTINUOUS IMPROVEMENT
Buying out MV Agusta and Buell Motor Company,
developing more plants in Brazil, Australia and India

EVALUATION OF EXTERNAL ENVIRONMENT

MACRO TRENDS WILL HAVE A
SIGNIFICANT IMPACT ON THE
COMPANY AND WHAT THE
IMPACT WILL LIKELY BE
Demographics, Economics, and
Environment

TELL HOW THE MICRO

ENVIRONMENT AFFECTS THE
COMPANY
Substitutes, Suppliers,
Threat of entry, Rivalry, and
Buyers

EVALUATION OF STRENGTHS
Brand Image
Individuality, Freedom and
Adventure

Customer Loyalty
Slogan to customers:
We ride with you

New Product Development

Super-heavyweight bikes
Successful shift from young,
blue-collar workers

EVALUATION OF WEAKNESSES
Highly-imitable physical
products

Competition from diversified companies

Technologically-lagging

Vulnerability to a shift in
demographic trends

Baby-boomers, Gen. X, Gen. Y

Dependence on international
expansion
U.S. market saturation

Sensitivity to macroenvironmental factors

Customer debt from financial crises

TRANSFORMATION STRATEGY
Rethinking and restructuring of Harleys manufacturing operations, the
transformation of its product development system, and a drive to build
distribution and grow sales in the emerging markets of Asia and Latin America

GROWTH STRATEGY
Expanding sales outside of the US
Issue: Extent to which Harley needed to adapt its products, image, and
customer approach
Implementation: Modified some of its models for the European sportster
and acquired MV Agusta (Italian manufacturer)

STRATEGIES SUCCESSFUL?
August 6, 2012: Harley sold MV Agusta back to its previous owner for $3.9 million.

Plans Harley had that were not implemented:

Revitalize MV Agusta
Expand Harleys European dealership network
Build a stronger presence among younger riders