Case Study Presentation

Harley Davidson
Conducting Business Electronically

Presented By
Najam us Saqib [BT – 02 – 01]
Shoaib Javed [BT – 02 – 24]
Ghazal Zaheer [BT – 02 – 44]
Ahtasham Rizvi [BT – 02 – 47]
BBA – IT (6th Semester)
2002 – 2005
Institute of Management Sciences
BZU - MULTAN
 Introduction To
Harley Davidson
Mission & Vision Statements
Time Line (The Ups & Downs)
 Mission & Vision Statements

• Mission
– We fulfill dreams through the experience of
motorcycling, by providing to motorcyclists and to the
general public an expanding line of motorcycles and
branded products and services in selected market
segments

• Vision
– To continuously improve our mutually beneficial
relationships with stakeholders (customers,
suppliers, employees, shareholders, governments and
society)

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 Company Profile

• Works harder to build genuine relationships with their

customers
• Has created loyalty through a pattern of steadfast
interactions with its customers
• Reinvents the customers’ experience in ways that would
strengthen the sense of affiliation that the customer has
with the products and services
• Our values are the heart of how we run our business
– Tell the Truth
– Be Fair
– Keep Your Promises
– Respect the Individual
– Encourage Intellectual Curiosity
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 Company Profile

• Since going public in 1986, Harley has increased earnings

at an average annual rate of 37 percent
• Without the shadow of any doubt, HARLEY DAVIDSON is
a brand that has achieved cult status and outstanding
financial performance
• That's what makes the story of Harley-Davidson so
interesting. We want to know how they got there. And the
answer is not in one story but in three.

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 The 3 fascinating Stories!

• Beginnings & Survival

– 1903: William Harley & Arthur
Davidson started the company
[ output only 1 Motorbike ]
– 1909: introduced its trademark bike;
a 2 cylinder, v-twin engine (the
fastest motorcycle at that time)
– 1910: Sold 3200 Bikes [since 1903]
– 1917: brought World War I to the
United States and Harley sold twenty
thousand motorcycles to the U. S.
Army
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 The 3 fascinating Stories!

• Beginning & Survival (cont.)

– 1920: Depression in economy hit everybody hard but it
devastated motorcycle companies
• Two companies, Harley-Davidson and an Indian,
manufacturing motorcycles in the United States survived.
[Total motorbikes sold that year total 6,000 ONLY]

– 1939 To 1945: World War II revitalized Harley's

fortunes. The company sold almost 100,000 of their
WLA model to the US military
– 1947: Introduced the classic black motorcycle jacket. It
was the start of the Wild One Era and Harley's
second story

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 The 3 fascinating Stories!

• The Wild One Era

– 1947: That same year a gang of motorcyclists rode into the town
of Hollister, California and simply took it over (On Harleys). The police
lost control and the motorcyclists ran amok. Even the law could
not stop the two-wheeled warriors.

– 1962: Honda began importing its smaller and light motorcycles

into the United States
• And stated: Our bikes are for the nice people, not outlaws. They told
their story in one of the most effective advertising campaigns of all
time, "You meet the nicest people on a Honda."

– 1969: American Machine and Foundry (AMF) bought Harley

• Those days, managers believed that they could manage any kind of
company even without knowing much about the business. That's
where third story begins.
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 The 3 fascinating Stories!

• The Near Death Experience

– Competition was hurting sales and the Harley was in
hands of immature management. Harley faced bad
quality management

– 1981: 13 senior executives of the Harley-Davidson

Motorcycle Company signed a letter of intent to buy
the company from AMF

– The company then put in a restructured plan,

incorporating management principles adopted from the
Japanese, new marketing strategies, and
manufacturing techniques [That’s where things started
getting changed]
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 The 3 fascinating Stories!

• The Near Death Experience (cont.)

– 1983: Harley introduced the Harley Owners Group (HOG)
– 1986: The company went public
– 1987: Got listed in New York Stock Exchange
– 1995: Jumps into E - Business
– 2000: Re-established independence from AMF
– Today, Harley has not only improved quality and won the
long battle to regain its market share but has also
achieved cult status with customers
– Their customers simply think it is not only the greatest
motorcycle in the World but the greatest vehicle
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 The New Business Model

Change in Business Methodology

H-D in E – Business: The Success Continues
Financial Performance
 Restructured Business Model

• BANKRUPTCY KNOCKS!
– Transformation is the Answer!

• Restructuring Plan by CEO Richard Teerlink

• Extending the Plan- jumping into E – Business
• Major objectives of the E – Business dimension
– Solving warranty claims problems

– Employ Direct Marketing Strategy

– Gathering 1300 dealers on a single platform [ B2B ]

– Moving with time: Adopting new technologies [ Proactive EC ]

– Customer Relationship Management

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 Transformation: E - Business

• Revolutionized marketing procedures

• Gained company good will by fulfilling customers’
warranty claims
– Previously claims handling took more than a week
– Now only 2 days
• Helped to refine Manufacturing Process [JIT]
• Helped in cutting down the Marketing and
Operational costs

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 E - Strategy

• Diverse features and services on its website

• Efficient on-line purchase
– Purchase! round the clock, round the globe
– HD Credit Card
– HD online memberships
• Universal client capability
• Building an HD culture by creating community of
customers

And all this contributed to pull through the leader

position of Harley-Davidson in Bikes industry
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 EC Benefits: CRM

• Customization & Aftermarket

– Every Harley bike is extensively designed keeping in view the
ideas, requirements and enthusiasm shown by the consumer
– HD always wanted customer to get involved in product design that
gives consumers a sense of individuality and freedom of
expression
• Pride & Proximity
– HD community gives customers a sense of pride
– Sending Gifts to the strengthen relations and friendship
– HD Gatherings & Events
• Customer E – Loyalty
– CRM basically enabled the company to grasp the individuality of
customer in much more easy and efficient manner a reason to
stay loyal to HD
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 EC Benefits: Financial Growth

Sales Net Income

-Notice the slope of 1985 – 1995 and -Notice the slope of 1985 – 1995 and
1995 – 2005 1995 – 2005
-Harley made debut to E – Business -Harley made debut to E – Business
in 1995 in 1995
-Reduction in Operating and
Advertising expenes 16/61
 HD Relations: Investors

Stock
Stock Price
Stock Split Info
H-D vs. S&P 500
Stock Tracker
Stock Lookup

Financials
Annual Reports
Financial Statements
SEC Filings
Capital Expenditures
Financial Factbook

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HD Services: Career Development

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HD Services: Rentals & Tours

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HD Culture: Events & Racing

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 Business to Business

• HD Authorized Dealers
– The symbiotic relationship
– HD provides the virtual interface of dealers while dealers provide the physical
interface of the company
– HD has gathered 1300 dealers under the umbrella of one HD site
– From becoming a dealer to being a triumphant dealer
• Major Buyers
– The Fire & Police Department buy HD fully loaded bikes in bulks, customized
according to their operational requirements.
– Special POLICE and Fire Fighter accessories
• Speed Guns
• Sirens
• Special Lights
• Speed Boosters – A real need while on an emergency mission
• Fire Extinguisher

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 Harley Davidson: Police

• The Law Enforcer!

• Catch the bad guys out
there in streets!

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Harley Davidson: Fire Fighters

• Help protect from Fire!

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 Harley Davidson: Cop Training

• Training the Cop for

perfection!

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Products & Accessories

Harley Dream Bikes

Harley Motor Clothes Merchandise
 Products & Accessories

• Five categories of Dream Bikes

– Sporster

– Dyna

– VRSC

– Softail

– Touring

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 Harley Davidson: Sportster

• The ULTIMATE FUN!

• Lighter and Sportier than most Harleys
• Length: 88 inches
• Weight: 500 lbs app.

Price: around
$10,000
Rs. 6 Lacs Pak.

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 Harley Davidson: Dyna

• This classic Harley chopper

• Length: 94 inches
• Weight: 630 lbs

Price:
$13,000 to $18,000
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Rs. 8 Lacs To 11 Lacs
 Harley Davidson: VRSC

• Cool H-D!
• Your companion on Special Adventures!
• Length: 94 inches
• Weight: 600 lbs

Price:
$19,000
Rs. 12 Lacs 29/61
 Harley Davidson: Softail

• The bad guy partner!

• Watched Terminator 2? Yes? Must be knowing
Softail!
• Length: 95 inches
• Weight: 650 lbs

Price:
$14,000 to $19,000
Rs. 8 Lacs To 12 Lacs 30/61
 Harley Davidson: Touring

• The Travel Partner! Take every thing along you!

• Length: 94 inches
• Weight: 800 lbs

Price:
$19,000 to $24,000
Rs. 12 Lacs To 15 Lacs 31/61
 H-D : Touring – Interior

• Front
– Cassette/CD/MP3/AM/FM Player

– Wind Protection Screen

– Enhanced Speed Dials & Meters

• Back
– Comfortable Seat

– Seats with Heating Capabilities

– Back Trunk Panel

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Harley Davidson: Accessories

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The Company’s Website!

Introduction to The Store Front

&
Purchase Procedure
Website: Main Page

• Click on a country
• Doing so, will let you
see the information
pertaining to that
country

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Website: Store Front

• Loaded with latest

information and news
• Lets you navigate
through various
sections of the site

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Purchasing: Plan!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: View!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: View!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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 Purchasing : View!

• View the bike through different

angles
• Have a 360o view!

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Purchasing: 360o View of Bike

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Purchasing: Features!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Specifications!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Compare!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Colors!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Genuine Motor Parts

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Do The Numbers!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Need
HD is Financing?
there!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: HD is there!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Contact Dealer!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Find Dealer!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: Find Dealer!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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Purchasing: There You Are!

• Follow the procedure

– Analyze bikes

– Choose

– Customize

– Budget?

– Financing?

– Find Dealer

– Place Order

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 Purchasing: There You Are!

Various Queries
Customer
Website

Various Information

Contacts Dealer

Product

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Purchasing: General Accessories

• Follow the procedure

– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just

checkou

– Fill in your billing

information

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Purchasing: General Accessories

• Follow the procedure

– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just

checkout

– Fill in your billing

information

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Purchasing: General Accessories

• Follow the procedure

– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just

checkout

– Fill in your billing

information

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Purchasing: General Accessories

• Follow the procedure

– Find E - Dealer

– Choose Product

– Add to Cart

– Shop More? Or Just

checkout

– Fill in your billing

information

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 Process Flow

Email to notify
order delivery

Product Info.
& Credit Card
Order forwarded
Info
Customer Website Dealer

Email for Order Received Notification

Product

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 Conclusion

• A classic success story that captured the markets by the virtue of E –

Business.
• But what makes HD case special is that the company was struggling
for recovery from its bad era and E-business shored them up
• HD management has shown a great deal of determination to let the
company hit the sky right from the bottom line
• While we can’t neglect that E-business was a mere extension of
Richard’s RECONSTRUCTION PLAN (1985), it is interesting to find
that although plan worked well right from the implementation and
business started growing on financial charts in the first decade (1985
– 1995) but that the real pace was gained during the second decade
(1995 – 2005) when the company moved to E – Business
• So, we can see how E – commerce infuses the speed of internet into
a business

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 Thank You!

• References
– Harley-Davidson at One Hundred: An American Story By Wally Bock

– Case Study on Harley-Davidson By Josef Schinwald

– Harley-Davidson Business Practices By Reginald A. Bruce

– Harley Davidson Review By “How Stuff Works”

– Annual Report of Harley Davidson By Company Website

– Various Links from the Company’s Web

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