In the year 1903 Harley-Davidson was born from a small warehouse in Milwaukee, where 20 years old Arthur Davidson and William Harley was 21 years old had plan to build a motorcycle. The motorcycle that they built was amazing enough to be replicated. Soon, the motorcycle built by friends who joined in Davidson's two brothers became saleable in the market. Harley-Davidson motorcycle to win many races, and the company became the largest producer of motorcycles by 1920.
Harley-Davidson motorcycles remained a fad until the 1960s. The company experienced problems during the 1970’s, but was back on track soon enough. Between 1994 and 2003, the company’s revenues grew at a compound annual rate of 16.6 percent to reach $4.6 billion. Shareholders’ equity in 2003 amounted to more than $2.9 million. Also by 2003, Harley-Davidson had the leading market share in the Asia/Pacific Region, a commanding market share in the United States, and 6+ percent market share in Europe – the biggest market for motorcycles. Loyal customers of Harley-Davidson had the company’s name tattooed on their arms. However, the company faced the threat of losing its market shares to motorcycle manufacturers who market their products especially to the younger generation. The baby boomers that had experienced Harley-Davidson as a fad in their youth are expected to decrease their demand for motorcycles as they age. Moreover, Harley-Davidson does not produce the kinds of motorcycles, for example, scooters and mopeds, which are increasingly in demand in our time. Another threat faced by the company is the growing amount of regulation to reduce exhaust gas emitted by motorcycles.
So as to remain competitive, Harley-Davidson would have to change its image. It used to be a fad for the people who are now aging. But, the younger generation is not interested in the image that Harley-Davidson used to have. It would be best, therefore, for the company to introduce new motorcycles that are especially built for young people. Furthermore, the company must bear in mind the new regulation to reduce exhaust gas emitted by motorcycles while building its new motorcycles. Europe demands a 60 percent reduction in exhaust gas emitted by motorcycles. So as to continuing selling its products in the largest market for motorcycles, and also to increase its market share, Harley-Davidson must follow the new regulation.
The top management of Harley-Davidson should decide to introduce new products for the younger generation, while maintaining a short supply of its older models that had appealed to the baby boom generation in its youth. The baby boomers continue to admire the older image of the company. Even so, their demand for Harley-Davidson’s motorcycles is sure to decline with time. The top management of the company must, therefore, decide for Harley-Davidson to build new bikes for the younger generation while targeting the youth in its marketing efforts. The new image of Harley-Davidson must be especially marketed in Europe. Most importantly, the top management must decide for the company to manufacture the kinds of motorcycles that are all the rage in our time, e.g. light motorcycles, mopeds and scooters. Lastly, the top management should consider buying or merging with a Japanese motorcycle manufacturing company that already builds such motorcycles at lower costs. Given that a large number of cyclists do not seek specific brands in our time, going for cheap Japanese motorcycles instead, the fame of Harley-Davidson coupled with low prices should help the company increase its market share around the globe.
Harley-Davidson motorcycles remained a fad until the 1960s. The company experienced problems during the 1970’s, but was back on track soon enough. Between 1994 and 2003, the company’s revenues grew at a compound annual rate of 16.6 percent to reach $4.6 billion. Shareholders’ equity in 2003 amounted to more than $2.9 million. Also by 2003, Harley-Davidson had the leading market share in the Asia/Pacific Region, a commanding market share in the United States, and 6+ percent market share in Europe – the biggest market for motorcycles. Loyal customers of Harley-Davidson had the company’s name tattooed on their arms. However, the company faced the threat of losing its market shares to motorcycle manufacturers who market their products especially to the younger generation. The baby boomers that had experienced Harley-Davidson as a fad in their youth are expected to decrease their demand for motorcycles as they age. Moreover, Harley-Davidson does not produce the kinds of motorcycles, for example, scooters and mopeds, which are increasingly in demand in our time. Another threat faced by the company is the growing amount of regulation to reduce exhaust gas emitted by motorcycles.
So as to remain competitive, Harley-Davidson would have to change its image. It used to be a fad for the people who are now aging. But, the younger generation is not interested in the image that Harley-Davidson used to have. It would be best, therefore, for the company to introduce new motorcycles that are especially built for young people. Furthermore, the company must bear in mind the new regulation to reduce exhaust gas emitted by motorcycles while building its new motorcycles. Europe demands a 60 percent reduction in exhaust gas emitted by motorcycles. So as to continuing selling its products in the largest market for motorcycles, and also to increase its market share, Harley-Davidson must follow the new regulation.
The top management of Harley-Davidson should decide to introduce new products for the younger generation, while maintaining a short supply of its older models that had appealed to the baby boom generation in its youth. The baby boomers continue to admire the older image of the company. Even so, their demand for Harley-Davidson’s motorcycles is sure to decline with time. The top management of the company must, therefore, decide for Harley-Davidson to build new bikes for the younger generation while targeting the youth in its marketing efforts. The new image of Harley-Davidson must be especially marketed in Europe. Most importantly, the top management must decide for the company to manufacture the kinds of motorcycles that are all the rage in our time, e.g. light motorcycles, mopeds and scooters. Lastly, the top management should consider buying or merging with a Japanese motorcycle manufacturing company that already builds such motorcycles at lower costs. Given that a large number of cyclists do not seek specific brands in our time, going for cheap Japanese motorcycles instead, the fame of Harley-Davidson coupled with low prices should help the company increase its market share around the globe.
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