ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
harley davidson
1.
2.
3. Briefly 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.
5. History of HD
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.
6. History of HD
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.
7. History of HD
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 Sporters of earlier days.
Harley is the only major American Manufacturer of heavy weight
motor cycles.
Have more than 15,000 employees.
9. Values
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.
10. Product extensions
Motor Cycles
Bike accessories
Buell motor cycles: wholly owned subsidiary of
Harley by 2003 (closed now)
15. Mission
We fulfill dreams through the experience of motorcycling,
by providing to motorcyclists and to the general public an expanding line of
motorcycles, branded products and services in selected market segments.
16. PROPOSED MISSION
“Constantly renewing
ourselves and offer our
customers the best
motorcycle experience
without compromising
the quality.To be
branded as the best
motorcycle available in
the world.”
17. Visio
n
HD, is an action-oriented, international company, a
leader in its commitment to continuously improve our
mutually beneficial relationships with stakeholders
(customers, suppliers, employees, shareholders,
governments and society). HD believes the key to
success is to balance stakeholders’ interests through the
18. PROPOSED VISION
“Always be competitive and continuously improving our
customer satisfaction, increasing dynamic, diverse and global
market” The best quality motorcycle, motorcycle products
and financial services will be provided world wide is the
commitment of Harley Davidson. The total team effort of
Harley Davidson employees is devoted to full filling dreams
of customers and we believe there is not a motorcycle riding
experience like Harley Davidson.
20. Market Penetration
• Get some more market share from the existing market(U.S,
U.K, and Japan)
• Use more marketing techniques like advertising
• HD has a good brand name so it’s easy for them to eat up the
competitor market share
• Competition is high in this segment mostly in U.S so good
choice market penetration
• Expand the HOG (Harley Owners Group) to Asian countries
• If the company can provide the customer satisfaction that they
are providing to the U.S customers to the Asian customers they
can increase the sales
21. Product Development
• Younger generation and female are now
coming to this segment so expand the motor
cycle segments to younger generation and
females.
• In Europe they can increase or expand the
Buell’s market share by introducing new
motorcycles.
22. Market Development
• Harley-Davidson can bring in their vehicle to Asian
countries (India, China), because these countries have a
high population and the market potential is also high.
• The cost to bring in the old vehicles (old product) to
India is so much difficult:
- There are so much environmental laws
-Taxes are problems
-Levis are high in India
• So starting new plant in India can solve this problem.
Negotiations with the Government can solve these
problems
23. CURRENT
INTEGRATION
STRATEGIES
• Vertical Integration
• Horizontal Diversification
24. Vertical Integration
• HD uses both backward and forward integration
• More than 750 suppliers of g&s are used in the design
and manufacture of motorcycles, parts and accessories
• The control of inputs is a necessary part of just-in-time
manufacturing
• HD has been backward integrating to maintain control
over the quality of suppliers
• HD owns most of its distributors
• Distributing completed motorcycles throughout the world
• HD is responsible for the delivery of parts and accessories
25. Horizontal Diversification
• HD has acquired Buell Motorcycles and Eaglemark Financial
Services, in order to provide new product lines for their
customers
• Buell was acquired in order to be able to provide customers
with a V-twin powered Sport motorcycle
• This type of motorcycle has become increasingly popular
with the younger and European riders
• Eaglemark provides motorcycle financing, motorcycle
casualty insurance and extended service contracts for HD and
Buell motorcycles
• They also issue the HD Chrome VISA Card, allowing riders
and customers to show their brand loyalty
26. Yasemin Şirin
You might be a biker
if…
You can’t remember your
You pull your bike into the motel room and use a bath towel to wipe
You take your You carry ride names of your before they can cw
You wave a abikers your when bike the your wall
kids for at picture or bike you’re in your
kids’ on even birthdays, dishwash
in
You have put motorcycle parts in
but you can remember that
Harley-Davidson made the
Knucklehead, Panhead, Shovelhead
Evolution, and Twin Cam 88 & 96
28. MANAGEMENT
• Excellent Corporate Governance has been a long
standing business practice at HD, because it makes
good business sense
• The HD Management and Board of Directors is
composed of accomplished leaders from a range of
industries who meet regularly to review Company
objectives and plan for future growth
• These individuals draw on their diverse
backgrounds and experiences
• They are proud HD enthusiasts, and they work to
ensure that the decisions made by HD promote
fairness, financial transparency and accountability to
all our shareholders
30. 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
31. 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
32. 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
33. 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 aluminum 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
34. 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
35. 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
36. 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
37. MICHEAL PORTER ANALYSIS
Five Forces Analysis
Forces Strategic Significance
Internal Rivalry LOW-MODERATE
Threat of New Entrants LOW
Threat of Substitutes LOW-MODERATE
Products
Bargaining Power of Buyers LOW
Bargaining Power of HIGH
Supplier
40. MARKET SHARE
• Competition in the motorcycle industry consists of
only a handful of producers worldwide.
• The Japanese producers Honda, Yamaha,
Kawasaki, and Suzuki are producing a full line of
motorcycles ranging from scooters to heavyweights,
and together control the largest share of the market
• Motorcycles are sold internationally, 3 main
geographic markets North America, Asia, and Europe
• The largest is the North American Market (USA
and Canada account for about 60% of this market)
accounting for 60% of worldwide motorcycle sales
41. MARKET SHARE (con’t)
• Most Asians consider motorcycles as a basic means
of transportation.
• Major target areas include China, Korea, Taiwan
and Vietnam.
• The European Market is another market with great
potentials since Europeans have a higher disposable
income and enjoy a higher standard of living
• Eastern Europe is not offering a good deal mainly
because of its unstable political and economic
environment
42. The following table details the market share
by region:
North American Market Share
Harley-Davidson 46.40%
Honda 20.20%
Suzuki 9.80%
Yamaha 9.30%
Kawasaki 7.10%
BMW 2.50%
Other 4.60%
46. GROWTH SALES
For the first time in 17 quarters, Harley
reported selling more motorcycles than in the
year-ago quarter. Growth in the U.S was the
most impressive, while international growth
contributed too. Thanks to relatively surging
sales in the U.S., the mix of domestic to
international sales has dropped from 42% last
year to just 36% now.
47.
48.
49. Human Resource
Incidents that may involve
a potential conflict of
interest
Disclosure of any waivers of
any conflict of interest
Regular reports to the
Board.
Reassess annually the
Human Resources
Committee performance
Establish subcommittees
and delegate authority to
50. Human Resource
Committee Duties and
Responsibilities is to review
the;
Total compensation
Career development and
management succession
plans
Make recommendations
regarding the selection and
retention of officers
52. Sturgis is a city in Meade County, South Dakota,
United States.
The population was 6,627 as of the 2010 census.
It is more popular than some city in the USA
53. • The Sturgis Rally is a motorcycle rally held
annually in Sturgis, South Dakota each first
full week of August
It was founded in 1938 by the Jackpine
Gypsies Motorcycle Club
54. The first year in Sturgis, there were 19
participants
But in recent years; Attendance was estimated
at, 614,951 in 2004, and 625,250 in 2005
56. • It is the biggest motorcycle rally in the world
• A lot of people comes from thousands of
miles of distance
• For example: Some people comes from New
york by Harley Davidson motor.
57. • The distance between Sturgis and New York
1744 miles and Florida 2030 miles.
• Distance isn’t important for participator
58. The others of racing place
• Sturgis
• Florida
• Shipley
• Milwauke (wisconsin)
• Las vegas
64. INTERNAL ANAYLSIS FACTOR (IFE) MATRIX
STRENGHT WEIGHT RATING WEIGHT SCORE
1-Strong brand name 0.15 4 0.60
2-ıt has strong market department 0.15 3 0.45
3-Strong relations built on trust and respect 0.10 3 0.30
with supliers and dealers
4-It is only major American motorcycle 0.10 3 0.30
manufactures
5-The standart and performance segments 0.10 4 0.40
of Harley Davidson make up 70 % of the
European heavy weight motorcycle market
WEAKNESS WEIGHT RATING WEIGHT SCORE
1. Harley davidson dosn’t emphasize price 0.10 2 0.50
in it’s product
1. Loss of benefits 0.10 3 0.60
1. Lack of opportunity for advancement 0.10 3 0.30
1. Facing engoing capacity constraints 0.05 4 0.20
1. Difficult to attract and retain talented 0.05 4 0.40
employee
TOTAL 1.00 4.05
65. STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR
(EFE) MARTIX (CPM) EVALUATION (IFE)
STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRAND
OPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGY
THREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIX
MATRIX) EVALUATIN
(SPACE
MARTIX)
STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX
66. Strong marketing
Product Quality
Brand Recognition
Trademark Licensing
n gt hs
S tre Supplier relationship
Designer Store
Service
Distribution Channel
Wow Biking
experience!
67. Weakness
Price factor
Brain drain
Reliant on few suppliers
Market share
Ongoing capacity
constraints
69. The international market is
now larger than the U. S.
Customers value quality parts.
uni ties
ort
Women and younger riders are
Op p
increasing becoming interested
in bikes.
Industry registrations of
heavyweight motorcycles are
increasing.
70. SWOT Analysis
S-O Strategies
• Expand production into Europe and Asia
• Expand marketing to female riders
• S-T Strategies
• Increase strong brand name
W-O Strategies
●Pursue foreign markets more agressively
• W-T Strategies
• Improve employee relationships
71. SWOT
MATRIX WEAKNESSES
STRENGTHS
Dealer inventory system
Customer retention
International market
Financial position
share
Product selection
Expensive product
U.S.market share
Product selection
U.S. dealer Network
International dealer
THREATS
OPPORTUNITIES Union relations
Increasing number of Aging U.S.population
riders Competitor
U.S. industry growth diversification
Aging population Declining European
Asian industry growth growth
Availability substitus
72. SPACE Matrix
Ratings
Financial Strength(FS)
+6
Leverage
+4
Liquidity
+3
Return on invesment
+4
Working capital
Industry Strength(IS)
+5
Growth potential
+4
Profit potential
+4
Capacity utilization
+5
Ease of entry
Environmental Stability(ES)
-4
Competitive pressures
-2
Risk
-5
Price range of competing products
-2
Demand fluctuations
Competitive Advantage(CA)
-2
Market share
-1
Loyalty
-1
Product life cycle
-1
73. SPACE MATRIX
Conservative FS Aggressive
+6
+5
+4
+3
+2
X
+1
-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
CA IS
-1
-2
-3
-4
-5
Competitive
Defensive -6
ES
74. BCG Matrix
Relative Market Share
1.0 0.50 0.0
+30
STAR PROBLEM CHILDREN
Industry
Growth
Rate
COW DOG
-30
Harley-Davidson RELATIVE MARKET SHARE 48%
GROWTH RATE 13.029
75. INTERNAL-EXTERNAL (IE) MATRIX
Harley-Davidson U.S. MARKET SHARE 49%
Harley-Davidson EUROPEAN MARKET SHARE 07%
Harley-Davidson ASIAN MARKET SHARE 22%
4
4 strong 3 avarege 2 Weak 1
H
high H.D US
Market
EFE Total Weighted Score
49%
3
H.D ASIAN
medium Market
22%
2
H.D EUROPEAN
Market
Low 7%
1
76. GRAND STRATEGY MATRIX
Rapid Market Growth
QUADRANT:2 QUADRANT :1
Weak Strong
Competitive Competitive
Position QUADRANT:3 QUADRANT:4
Position
Slow Market Growth
77. STAGE 1 THE INPUT STAGE
EXTERNAL FACTOR EVALUATION COMPETITIVE PROFIL INTERNAL FACTOR
(EFE) MARTIX (CPM) EVALUATION (IFE)
STAGE 2 THE MATCHING STAGE
STRENGHT-WEAKNESESS- STRATEGIC BOSTON INTERNAL- GRAND
OPPORTUNITIES – POSITION AND CONSULTING EXTERNAL - STRATEGY
THREATS –(SWOT ACTION (BCG) (IE)MATRIX MATRIX
MATRIX) EVALUATIN
(SPACE
MARTIX)
STAGE 3 THE DECISION STAGE
QUANTITATIVE STRATEGIC PLANNING MATRIX
78. QUANTITATIVE STRATEGIC MATRIX (QSPM)
E.P. EUROPE E.P. ASIA
STRENGHTS WEIGHT AS TAS AS TAS
Net income of 2010 was $146.545,it is very big rate to compare with the 0.0225 3 0.0225
previous year 2009 0.075 3
The standard and performance segments of 3 0.135 2 0.09
Harley Davidson make up70% of the EUROPEAN heavy weigted
motorcycle market
0.045
Harley Davidson operates in two segments: 0.05 3 0.0375
Harley Davidson motorcyles & related products and HDFS(Harley Davidson 4
Financial Service) 0.0125
Harley Davidson is the only majör American heavyweight motorcyle manuf
0.05 4 0.2 4 0.2
Strong brand name
0.075 4 0.3 2 0.15
WEAKNESS 0
High price 0.075 2 0.15 2 0.15
Harley Daviidson has problems in gaining more market share in some
European countries(That’s one of the main markets for heavyweight 3 0.9 3 0.9
motorcyles outside U.S). 0.03
They didn’t yet start its sales in India one of the biggest market s
0.05 3 0.15 3 0.15
Required production is not met ,analysing the future of heavyweight
motorcyle market 4 0.1 4 0.1
0.025
OPPORTUNİTES 0
The European demand for Harley Davidson is the highest international market
and represents the single largest motorcyle market in the World 4 0.3 2 0.15
0.075
The international heavy weight market is growing and is now larger than the
U.S. heavyweight market 0.075 4 0.3 3 0.225
Women and younger riders are increasing becoming intrested in bikes
0.05 3 0.15 4 0.2
Market share increasing in Europe and Asia for the last two years
0.025 3 0.075 4 0.1
Increasing demand U.S market for bikes
0.1 2 0.2 3 0.3
Customer value quality parts
0.125 1 0.0125 2 0.025
THREAT
Harleys ongoing capacity restraints caused a shortage supply and a loss in
domestic market share in recent years 0.75 4 0.3 3 0.225
The European Union’S motorcyles noise standars are more stringent than those
of Environmental Protection Agencies in the U.S increased enviromental stand 0.012 3 0.0375 2 0.025
5
79. 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”
80. Possible
Strategies into Foreign Markets
Expand
• Asia
• Europe
Product Development
• Expand Motorcycle line for younger market
• Buell expansion
Concentric Diversification
• Other recreational vehicles
• Expand HOG and BRAG owner member g
81. Possible
Strategies
Made new alliances with some local b
companies to produce low cost
• India
Increasıng dıversity programing
• Tour
• museum
Increasing advertising
