This website uses cookies to ensure you have the best experience. Learn more

Strategic Report For Harley Davidson

4378 words - 18 pages

Strategic Report for
Harley Davidson

April 4, 2006

1

Table of Contents
Executive Summary ………………………………………………………… 3
Company History ……………………………………………………………. 4
Five Forces Analysis
Internal Rivalry ………………………………………………………. 8
Entry …………………………………………………………………….. 9
Substitutes and Complements …………………………………. 9
Supplier and Buyer Power ………………………………………. 10
Financial Analysis ………………………………………………………….. 11
Strategic Issues and Recommendations ………………………….. 17

2

Executive Summary
Harley Davidson remains a financially strong and stable company. During 2005 the
company reported the 19th consecutive year of record revenues and record earnings.
While Harley Davidson’s growth has ...view middle of the document...

Another reason for analysts’ pessimism about Harley Davidson is that recently the
company seems to be resting on its laurels, content with its current market position and
doing little to attract new, younger customers or to offer new motorcycle designs to
appeal to previous customers. One sign of this is that Harley Davidson’s dollar amount
spent on advertising and research and development has actually been decreasing over
3

the past couple of years. To some it might seem that management is sacrificing the
future of the company by not attracting new riders in order to boost financial
performance today.

Company History
In 1903 William Harley and Arthur Davidson made the first Harley-Davidson
motorcycle available to the public. It was built in a small wooden shed with the words
“Harley-Davidson Motor Company” scrawled on the door. The next year, in 1904, C.H.
Lang opened the first Harley-Davidson dealership in Chicago, selling one of the first 3
Harley’s ever made. In 1906 the company opened a new factory, measuring only 28x80
feet in Milwaukee, Wisconsin. The next year, in 1907 the company doubled its factory
space. Also in 1907 the Harley Davidson Motor Company was incorporated, with the
stock being split between the 4 owners, including William and Walter Davidson
(Arthur’s brothers). By 1920 Harley Davidson is recognized as the largest motorcycle
manufacturer in the world, supported by over 2,000 dealers in 67 countries. In 1953,
one of Harley Davidson’s competitors, Hendee Manufacturing (makers of the Indian
motorcycle line), goes out of business. For the next 46 years Harley Davidson is the
only American manufacturer of heavyweight motorcycles.

In 1912 Harley Davidson built a six story building on Juneau Avenue in downtown
Milwaukee, Wisconsin. This building would become the main offices and factory for
Harley Davidson. In 1947, to supplement existing manufacturing facilities Harley
Davidson purchased the old A.O. Propeller plant, which the company subsequent
converted from wartime manufacturing into a large machine shop. In 1962, in response
to a growing trend of including fiberglass in motorcycle production Harley Davidson
purchases a 60% equity share in the Tomahawk Boat manufacturing company. Harley
4

uses the companies existing equipment to manufacture its own fiberglass parts,
beginning in 1963 with the official opening of the Tomahawk division of the company.

In 1973 Harley Davidson upgraded its production facilities with the opening of a new
400,000 square foot plant in York, Pennsylvania. The companies manufacturing
operations are now located in York, Tomahawk, and Milwaukee, where the new
Capitol Drive factory begins to manufacture engines that same year. Harley Davidson’s
expansion into York continued in 1992, with the opening a new $31 million paint facility
to complement the manufacturing facilities already located in the town.

Today Harley Davidson’s manufacturing base...

Other Papers Like Strategic Report for Harley Davidson

Revving Up Sales at Harley-Davidson Essay

1191 words - 5 pages strategic decision making from both well known businesses.   Case Study 1 Chapter 2, Closing Case Two (Revving Up Sales at Harley-Davidson), pages 75-76 1. How does Talon help Harley-Davidson employees improve their decision-making capabilities? Talon is the information system that Harley-Davidson uses. It handles the inventory, vehicle registration, warranties and point-of-sale transactions for all Harley-Davidson dealerships. “The system

Harley - Davidson Essay

911 words - 4 pages 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 Harley-Davidson. Overview: Harley- Davidson was a motorcycle manufacturer. They offered motorcycles, spare parts, accessories, apparel…and many others. It was active in two business segments: motorcycle

Harley Davidson Case

5874 words - 24 pages competition because their initial self-analysis showed a 98.7% compatibility, where the software has almost everything that Harley-Davidson is looking for.  However, this also gives supplier 3 an advantage because their main downfall originally was personality conflicts, even though their software was very compatible.  This also puts supplier 1 at a disadvantage because their personality melded very well with Harley-Davidson, but their product was

Harley Davidson Case Study

1416 words - 6 pages Case Study 6.1: Harley-Davidson, Inc. Zachary NewComer 11/06/14 Auditing Prof. Riggs (1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three. 1. Suppliers might leak information to

Harley Davisdon

1930 words - 8 pages than the organization requested, however then it evaluated the finalists on usefulness. This was a blended sign purpose of perplexity, yet other focuses were not even. Thus, appointing weights to determination focuses and evaluations to every supplier returns Provider as the most suitable decision for Harley-Davidson. Recommendations: They should Reinforce strategic alliance engagement with Asian circulation arrange as it can expands the

General Mamaner

2970 words - 12 pages Harley-Davidson: Preparing for the Next Century English 3345 - Business Team #4: Natalie Martell Martha Martinez Virginia Lopez Myles Melendez History, development, & growth: The birth of the Harley-Davidson legend began around the 1900’s, in a small shed in the Davidson family backyard in Milwaukee. What started out as an ambition for Walter Davidson, to be the best bicycle rider, turned out to be a step into a

Harley-Davidson

996 words - 4 pages as the heart of the company and was the work manager. These four men were the founders of the best motorbike company ever, Harley-Davidson. The first couple of years of the business were some of the hardest. The four men completed their first motorbike in about 1903(McDiarmid, 13). In their 1904 season, they produced somewhere between one and eight bikes. The first motorbike ever produced went for a total of 134,000 kilometers (McDiarmid

Harley Davidson

2612 words - 11 pages achieved over 112 years of history is remarkable. Case Study It all began in 1901 where William Sylvester Harley’s first blue print of the motorbikes engine was completed. In 1903, Harley and Arthur Davidson finished their motor-bicycle with the help of Walter Davidson in a nearby shed of their friends; Henry Melk in Milwaukee, Wisconsin. During World War I and II, Harley-Davidson started producing motorcycle for the US army in large

Case Study

5217 words - 21 pages HARLEY DAVIDSON CASE STUDY With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and/or manufacturing techniques. Harley-Davidson is one of those excellent companies whom has challenged traditional ideas. We intend to show through this case study that any company can follow Harley

Harley Davidson

5217 words - 21 pages HARLEY DAVIDSON CASE STUDY With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and/or manufacturing techniques. Harley-Davidson is one of those excellent companies whom has challenged traditional ideas. We intend to show through this case study that any company can follow Harley

Harley Davdson

554 words - 3 pages EMPOWERMENT OF ALL EMPLOYEES TO FOCUS ON VALUEADDED ACTIVITIES. March 1999 1 Doing Business With Harley-Davidson Our vision is our corporate conscience and it helps us to eliminate short term thinking, such as "cashing in" on the intense demand for our motorcycles by giving quantity precedence over quality to save a few dollars per unit. It also encourages every employee in our organization to be acutely aware of his or her role in satisfying

Related Essays

Harley Davidson Strategic Profile Essay

3548 words - 15 pages Harley-Davidson: Strategic Profile and Case Analysis Della Shelly, Melie Solomon, Jim Tunison Misericordia University Table of Contents Section I: Introduction3 Section II: Company History3 Section IIa: The Road to Decline4 Section IIb: The Turnaround5 Section III: Porter’s 5 Forces6 Section IV: SWOT Analysis7 Section V: Looking Forward11 Section VI: Future Strategic Actions 12 Section VII: Achieving Continued Success 12 Section

Harley Davidson: Preparing For The Next Century

947 words - 4 pages Harley-Davidson: Preparing for the Next Century I. Nature of the case and decisions to be made Harley has been one of the top growth stocks from 1989 to 2003 but is now facing challenges related to brand perception, an aging customer base and heavy competition. In 2005, the stock price declined as Harley announced reduced sales estimates. In the early 1900’s Harley was an innovator, standardizing parts, developing new technology and

Guidelines For The Strategic Audit Report

8981 words - 36 pages Guidelines for the Strategic Audit Report Revised Sep 2013 Adapted and revised from: Wheelen and Hunger, (2008). Concepts in Strategic Management and Business Policy, 11th Ed., Pearson Education, Inc. Purpose of the strategic audit assignment Your assignment Selecting a company for the strategic audit An effective report Required format for the strategic audit report Required sections of the strategic audit report Executive Summary Current

Harley Davidson: Style And Strategy Essay

4327 words - 18 pages Europe with 14.4%, others with 5.1%, Japan with 5%, Canada and Australia accounted for 3.8% each (Harley-Davidson, Inc. - Financial and Strategic Analysis Review, 2013). Harley is too depending on the US market where their demographic strength is declining.    References: Allen, S. (2014). About Money: The Beginner's Guide to Joint Venturing. Retrieved September 20, 2014. Atsmon, Y., & Child, P. (2012). Winning the $30 Trillion