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Harley Davidson Essay

911 words - 4 pages

Harley- Davidson:
History :
Harley- Davidson was found in 1901, and was incorporated in 1907. After 10 years they sold one-third of their motorcycles to the U.S military, and within a year later selling their motorcycled reached half of the amount. In 1912 Japan was the first country outside the U.S. to have Harley-Davidson dealers. In 1914 Harley-Davidson entered the racing competition. 1969 Harley-Davidson merges with American Machine and Foundry (AMF) a producer of leisure products, and in the year 1981 the senior executives bought back Harley-Davidson from AMF. In 1986 Harley-Davidson is listed on the American Stock Exchange for the first time since 1969 when AMF purchased ...view middle of the document...

Executives knew what the brand stood for and how to operate its customers through their “heart, soul and mind”. The company also had a smooth relationship with its dealers.
Another turnaround for Harley-Davidson was to focus on their customer’s base and to expand it till it includes their CEOs, lawyers and doctors.
Another project was the Harley Owners Group, known as the “HOG”, they helped their dealers to attract and to retain customers. HOG members are found in 115 different countries.
Harley-Davidson announced that it was raising the production of their 2002 motorcycles to 263,000 units up by 12% from 234,500 in 2001.
Celebrating its 100 anniversary in 2003, the company declared that its aim was to sustain growth the next 100 years. The company stated that its success drivers were its strong brand recognition, exciting products and services, mutually beneficial relationships with suppliers and experience management team supported by an empowered work force. Although they recruited 500 additional workers to increase their production capacity in 2002 they still could not meet their demand, but in fact the company preferred not to do so. Dealers charged for 20% premiums and they forced customers to wait up to 18 months for receiving the product. Some customers refused to wait; this resulted in the decrease of Harley-Davidson U.S market share from 48% in 1997 to 44% in 2001. In 2002 they had more than 1300 dealer outlets in 48 countries. This resulted for the motorcycle sales to increase by 19% in the first 9months of 2002.
More specifically Harley-Davidson attempted to increase demand for its products and enhance its production with the goal of growing their earnings faster than their revenues.
The company stated that their success was because of their: strong brand recognition, exciting product & services, and beneficial relationships with suppliers.

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