Brief 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 customers life style obvious that show their freedom.

History

History of Harley
1901William 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. 1930Bill Davidson, Jr. wins the Jack Pine endurance contest with 997 points of 1,000.

History of Harley
1943Harley-Davidson receives the first of its four Army-Navy "E" Awards for excellence in wartime production. 1955Harley-Davidson produces almost 60,000 WLA models during the war for military use. 1987 Entered into American & New York stock exchanges. 1998A new assembly facility opens in Manaus, Brazil, the first operations outside of the U.S. 2001 Two big plants constructed in Milwaukee & Kansas cities. 2004HD recorded its 19th consecutive year of record earnings 2009 Harley-Davidson announces expansion into India. 2010The XL Forty-Eight is introduced, recalling the raw, custom Sports of earlier days. Harley is the only major American Manufacturer of heavy weight motor cycles. Have more than 15,000 employees.

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. Tell the Truth. Be Fair. Keep Your Promises. Respect the Individual. Encourage Intellectual Curiosity.

Values

Product extensions

Motor Cycles Bike accessories Buell motor cycles: wholly owned subsidiary of Harley by 2003 (closed now)

Brand extensions
Merchandise Helmet Boats Clothes (Jackets) Mugs Collectibles. Lighter Watch Beer
Bars

This is Harley for men

Harley For Women

INTENSIVE STRATEGIES
Market Penetration Product Development Market Development

ORGANIZATIONAL CHART

EXTERNAL FORCES
Economic Forces Technological Forces Social, cultural, demographic, and natural environment forces Political, governmental and legal forces Competitive Forces

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

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

Social, cultural, demographic, and natural environment forces

As aging couples with excess income are Harley Davidsons 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

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 aluminium 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

Competitive Forces
Its main competitors are Honda and Yamaha based on their world-wide market share Harleys 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

INTERNAL FORCES

To determine HDs 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-Davidsons strengths are in the U.S. market, as 80% of Harleys 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

INTERNAL FORCES(cont)
Harley-Davidson also introduced water-cooled engines, fuel injection, and catalytic converters to improve exhaust emissions Harleys 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-Davidsons few internal weaknesses

PORTER Five Forces Analysis

Forces
Internal Rivalry Threat of New Entrants

Strategic Significance
LOW-MODERATE LOW

Threat of Substitutes Products Bargaining Power of Buyers

Bargaining Power of Supplier

LOW-MODERATE LOW
HIGH

Market share and financial analysis BALANCE SHEET

HD CASH FLOW

The following table details the market share by region: North American Market Share
Harley-Davidson Honda Suzuki Yamaha Kawasaki BMW Other 46.40% 20.20% 9.80% 9.30% 7.10% 2.50% 4.60%

European Market Share

Honda Yamaha BMW Suzuki Kawasaki Harley-Davidson Ducati Triumph Other 21.00% 17.70% 15.10% 14.80% 8.50% 6.60% 5.70% 3.50% 7.00%

Asia/Pacific Market Share

. Harley-Davidson Honda Kawasaki Yamaha Suzuki BMW Ducati Other 21.30% 19.10% 15.80% 13.60% 10.10% 7.30% 6.90% 5.90%

World Wide Revenue

SWOT MATRIX
STRENGTHS Customer retention Financial position Product selection U.S.market share U.S. dealer Network WEAKNESSES Dealer inventory system International market share Expensive product Product selection International dealer

OPPORTUNITIES Increasing number of riders U.S. industry growth Aging population Asian industry growth

THREATS Union relations Aging U.S.population Competitor diversification Declining European growth Availability substitus

BCG Matrix
1.0 +30 Relative Market Share 0.50 0.0

STAR

PROBLEM CHILDREN

Industry Growth Rate

COW

DOG

-30 Harley-Davidson GROWTH RATE RELATIVE MARKET SHARE 48% 13.029

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. its a journey but not a destination