Harley - Davidson Inc. Motorcycle Industry :: essays research papers

Harley - Davidson Inc. Motorcycle IndustryINTRODUCTIONThe purpose of this report is to develop a strategic corporate objectivefor HarleyDavidson Inc., a publicly traded, employee owned shaper ofheavyweight motorcycles, digressional and commercial vehicles, military defenseitems, and small engines, distributing its products to domestic andinternational markets targeting all men and women of all ages.INDUSTRY AND COMPETITIVE MARKETThe manufacturing under study is the motorcycle industry consisting of fivemajor manufacturers one American (Harley Davidson), and four Japanese (Honda,Yamaha, Kawasaki, Suzuki) and some European companies (mainly BMW of Germany andsome other Italian companies). Most companies market their motorcycles andaccessories on a worldwide basis, handling international trade through foreigndistributors and domestic gross revenue through franchised surfacelets. Industry sales ofmotorcycles were shrinking in the early l990s because of the recession and thecompetiti on from computers and electronic products decreasing consumersdiscretionary income.Sales of accessories and parts make up 36% of total sell sales and is aviable area for producers to explore because people want something todifferentiate their bikes. Previously, motorcycles were viewed as a cheap meansof transportation. By 1992, they came to be viewed as a recreational, or aluxury item. This new perception of motorcycles led to the introduction of moreexpensive models with higher prices. This led to the introduction of consumerfinancing, one of the meteoric growing service areas in the motorcycle industry.MISSIONHarleys strategic objective is to continue to provide safe, hightechnology heavyweight bikes and keep customer propitiation at high levels. This forest vision more than doubled Harleys market share and increased its brandloyalty.EXTERNAL PLANNING PREMISESCUSTOMERSThey can be divided into 2 categories men and women.Men.A. Men under 30. This sort accounts for 44% of all sal es. Therefore, agreat opportunity exists here because of the groups size. This groups membersbuy motorcycles for their transportation and recreation needs. Men in this groupbuy more of mopeds, scooters and entry level lightweight road bikes.B. Men between 30 and 50. This age group makes up 45k of buyers anotherlarge area providing opportunities for firms. The motorcycles most frequentlypurchased are the heavyweight tourers and cruisers. Many buyers are marriedcouples looking for an alternative to taking the car out for weekend drives tothe country.C. Men over 50. This group accounts for about 11% of motorcycle sales.The heavyweight touring class and the middleweight road bike categories accountfor most of the sales here.Women. This group is a segment that is growing at a fast rate, therebyrepresenting an opportunity area. Firms to be successful here are to providesmaller, easier to handle, comfortable, and good quality bikes to build up brand