Harley Davidson Case Study
Essay by Rajace Raut • April 22, 2017 • Case Study • 317 Words (2 Pages) • 1,352 Views
Harley –Davidson is an American motorcycle manufacture company which was founded in 1903 by William Harley and Arthur Davidson. Harley – Davidson is also known as fifth biggest motorcycle manufacture in the world. The main strengths of this manufacture company are its brand image and the chopper motorcycle (expertise in custom) market culture (Greenspan, 2017). Harley Davidson has succeed to produce motorcycles with remarkable styling, customization, innovation, quality and other salient features, thus has premium price at retail compared to the competitors ( Harley Davidson, 2016).
Going through the investor relations section at www.harley –davidson.com and analyzing the latest annual report related to its international, company seems to be avoiding their production facilities outside the United States. Some of main reasons behind it are listed below:-
1. There remain always high risk for the company to maintain its brand quality in other countries as do in USA because of lack of raw materials, political instability affecting the company's production and supply of raw materials. So due to this reason also company couldn’t be able to maintain same quality and standard in other countries resulted avoid other countries.
2. The main strategy of company is to manufacture motorcycle just for promoting America dream overseas, and if company started producing in other countries that might be go beyond the American dream. Additionally the main aim of this company is to establish standard branded motorcycle in home country only i.e. USA.
3. Also producing their products in other countries results their inventory stock up at the time of off season periods whereas they have to pay high cost for storing their inventories.
4. It will also harm to their premium brand if they started producing their product in other countries.
REFERENCES
Greenspan, R. (2017, February 06). Harley-Davidson SWOT Analysis. Retrieved April 20, 2017, from http://panmore.com/harley-davidson-swot-analysis
Harley Davidson (2016).Annual Report on Form 10-K. (n.d.). Retrieved April 18, 2017, from http://investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-reportsannual&locale=en_US&bmLocale=en_US
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