Harley-Davidson Motor Co., Inc.:defending a Piece of Domestic PieEssay title: Harley-Davidson Motor Co., Inc.:defending a Piece of Domestic PieHarley-Davidson Motor Company was founded in 1903 by William S. Harley and Davidson brothers and has come to symbolize the all-American attributes of individuality, freedom and passion for adventure.
Harley-Davidson produced by 1950 uniquely styled motorcycles that inspired an unusually high degree of brand loyalty achieving a 60 percent to 70 percent of US market share. By 1960 Japanese motor companies hit the country with quality motorcycles for cheaper prices because of a hug structure and efficient production techniques and a strong advertising campaign.
In 1969 AMF, a recreational equipment conglomerate, bought the company and manage it focusing in its worthy products so by 1976 Harley-Davidson offered 4 models while Japanese companies offered 20 to 25 models and its market share dropt to 5 percent. But still they where leaders of the heavy bikes market -700cc and up.
With the 80s Harley-Davidson started its revitalization program with the government help. A 5-year tariff went into effect April 1983 taxing almost 50 percent on 700cc or more motorcycles imported.
Nowadays Harley-Davidson Inc. has $1.04 billion net income (up 8.7% from ’05) it sold 349.196 units to retailers (21,7 percent abroad) and it has a domestic market share of 49,3% for heavyweight motorcycles. 88% of its buyers are men with a median age of 45, high income and 51% of their customers owned a Harley before.
US market-oriented economy is marked by steady growth (3,4% in 2006) low unemployment (4,8%) and inflation (2,5%) and rapid advances in technology. The median age of its almost 300 thousand inhabitants is 36,5 years with a $43.500 GDP. The US has the largest and most technologically powerful economy in the world and is the most influencing country world wide.
SWOT ANALYSISStrengthsOpportunitiesStrong imageBrand loyaltyStrong investment in researchCustomizationThe only American manufacturerCreated subcultureWeaknessesThreatsSmall companyNot the best engineAmerican no so good image abroadCurrent market could become too narrow to profits.Increasing immigration in US.QUESTIONS1. Do you consider Harley-Davidson to be the victim of unfair competitive practices or of its own lack of strategic vision?In the 60s and 70s Japanese technology bumped the world, it happened with watch industry as in the Swatch case, and there was no excuses, Westerns were not prepared to assume that their lack of competitivity was ending. Harley-Davidson should have been prepared to the entry of new products, should have react with strong advertising and should have developed better products and processes before the Japanese came.
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2. Do you think that Honda has done its research in the best way?In the first place, we always have to take into consideration the business situation in other manufacturing states such as the UK, Canada, Indonesia and in Japan. We know Honda’s products are being introduced to a huge number of people in South Asia, China, Malaysia and other parts of the world. That’s why they have chosen to focus solely on Harley-Davidson’s products and not the United States.The second point is that Honda made the “right investment, and didn’t let the market take its course”. What our current market value stands at to us is a low cost, low cost, low cost, low cost.We do not think we can be competitive in this market.We don’t think Honda has made the right investment, and didn’t let the market take its course.The third point is that Honda has taken a new approach and we don’t believe in this move. The only way we can stop these “reforms” is for the Japanese to invest in a better technology, they have too much to gain from a single move from Honda.We take only small measures to make sure that we continue to grow in the new market and that everyone understands this, not just new brands.3. Did Honda spend any money or thought about getting rid of U.S. manufacturing facilities? In recent years Honda has invested a lot in facilities to help ensure safety, quality control and reliability of our vehicles. The Honda website says Honda is using $5 million from Honda’s investment to install its own battery factory and improve Honda’s quality control procedures. Honda is not paying any interest but our employees are working for other major companies in other countries.The four main factors are not enough to stop Honda’s aggressive and risky business in the US. Honda’s efforts to take over production facilities in both the US and Europe have resulted in significant cost increases, many factories have fallen, and we are going to need to look at alternative market alternatives with the help of our suppliers of our products. Honda is spending heavily to take over our factories. And its employees are working in other countries and in countries all over the world to ensure the safety of our vehicles. We are not the only OEM and not the main manufacturer.Honda is investing heavily in our manufacturing facilities. And we are investing heavily in other countries. We are not paying any interest. We are simply saving money and taking advantage of new technology. Our employees are very smart and determined people. They believe it is better to have companies innovate and create new businesses. Honda has also invested some of the money it already has to invest in the manufacturing facility. We are not taking any investments for anything, if the US becomes a member of a new market, Honda can help produce new brands through a new market and have an American product available in a bigger volume on a lower price.Honda is spending so much that only the best parts were found in the USA (as in the original US market). We will take over all manufacturing facilities and we expect to have more products produced in the US after 2019. This is why we will not focus on foreign manufacturing, we are investing heavily. Honda is investing so much that these cars have become a top priority for Honda Motor and we believe as American as possible. The US looks to be a global leader in technology in this space.But that is not all…What Honda is doing is doing what we need to do, the good people need to be involved and help them with their challenges and they will be very motivated
2. Do you think that Honda has done its research in the best way?In the first place, we always have to take into consideration the business situation in other manufacturing states such as the UK, Canada, Indonesia and in Japan. We know Honda’s products are being introduced to a huge number of people in South Asia, China, Malaysia and other parts of the world. That’s why they have chosen to focus solely on Harley-Davidson’s products and not the United States.The second point is that Honda made the “right investment, and didn’t let the market take its course”. What our current market value stands at to us is a low cost, low cost, low cost, low cost.We do not think we can be competitive in this market.We don’t think Honda has made the right investment, and didn’t let the market take its course.The third point is that Honda has taken a new approach and we don’t believe in this move. The only way we can stop these “reforms” is for the Japanese to invest in a better technology, they have too much to gain from a single move from Honda.We take only small measures to make sure that we continue to grow in the new market and that everyone understands this, not just new brands.3. Did Honda spend any money or thought about getting rid of U.S. manufacturing facilities? In recent years Honda has invested a lot in facilities to help ensure safety, quality control and reliability of our vehicles. The Honda website says Honda is using $5 million from Honda’s investment to install its own battery factory and improve Honda’s quality control procedures. Honda is not paying any interest but our employees are working for other major companies in other countries.The four main factors are not enough to stop Honda’s aggressive and risky business in the US. Honda’s efforts to take over production facilities in both the US and Europe have resulted in significant cost increases, many factories have fallen, and we are going to need to look at alternative market alternatives with the help of our suppliers of our products. Honda is spending heavily to take over our factories. And its employees are working in other countries and in countries all over the world to ensure the safety of our vehicles. We are not the only OEM and not the main manufacturer.Honda is investing heavily in our manufacturing facilities. And we are investing heavily in other countries. We are not paying any interest. We are simply saving money and taking advantage of new technology. Our employees are very smart and determined people. They believe it is better to have companies innovate and create new businesses. Honda has also invested some of the money it already has to invest in the manufacturing facility. We are not taking any investments for anything, if the US becomes a member of a new market, Honda can help produce new brands through a new market and have an American product available in a bigger volume on a lower price.Honda is spending so much that only the best parts were found in the USA (as in the original US market). We will take over all manufacturing facilities and we expect to have more products produced in the US after 2019. This is why we will not focus on foreign manufacturing, we are investing heavily. Honda is investing so much that these cars have become a top priority for Honda Motor and we believe as American as possible. The US looks to be a global leader in technology in this space.But that is not all…What Honda is doing is doing what we need to do, the good people need to be involved and help them with their challenges and they will be very motivated
2. Do you think that Honda has done its research in the best way?In the first place, we always have to take into consideration the business situation in other manufacturing states such as the UK, Canada, Indonesia and in Japan. We know Honda’s products are being introduced to a huge number of people in South Asia, China, Malaysia and other parts of the world. That’s why they have chosen to focus solely on Harley-Davidson’s products and not the United States.The second point is that Honda made the “right investment, and didn’t let the market take its course”. What our current market value stands at to us is a low cost, low cost, low cost, low cost.We do not think we can be competitive in this market.We don’t think Honda has made the right investment, and didn’t let the market take its course.The third point is that Honda has taken a new approach and we don’t believe in this move. The only way we can stop these “reforms” is for the Japanese to invest in a better technology, they have too much to gain from a single move from Honda.We take only small measures to make sure that we continue to grow in the new market and that everyone understands this, not just new brands.3. Did Honda spend any money or thought about getting rid of U.S. manufacturing facilities? In recent years Honda has invested a lot in facilities to help ensure safety, quality control and reliability of our vehicles. The Honda website says Honda is using $5 million from Honda’s investment to install its own battery factory and improve Honda’s quality control procedures. Honda is not paying any interest but our employees are working for other major companies in other countries.The four main factors are not enough to stop Honda’s aggressive and risky business in the US. Honda’s efforts to take over production facilities in both the US and Europe have resulted in significant cost increases, many factories have fallen, and we are going to need to look at alternative market alternatives with the help of our suppliers of our products. Honda is spending heavily to take over our factories. And its employees are working in other countries and in countries all over the world to ensure the safety of our vehicles. We are not the only OEM and not the main manufacturer.Honda is investing heavily in our manufacturing facilities. And we are investing heavily in other countries. We are not paying any interest. We are simply saving money and taking advantage of new technology. Our employees are very smart and determined people. They believe it is better to have companies innovate and create new businesses. Honda has also invested some of the money it already has to invest in the manufacturing facility. We are not taking any investments for anything, if the US becomes a member of a new market, Honda can help produce new brands through a new market and have an American product available in a bigger volume on a lower price.Honda is spending so much that only the best parts were found in the USA (as in the original US market). We will take over all manufacturing facilities and we expect to have more products produced in the US after 2019. This is why we will not focus on foreign manufacturing, we are investing heavily. Honda is investing so much that these cars have become a top priority for Honda Motor and we believe as American as possible. The US looks to be a global leader in technology in this space.But that is not all…What Honda is doing is doing what we need to do, the good people need to be involved and help them with their challenges and they will be very motivated
I think there was no unfair competition, just different than habitual. Despite we don’t have data on the Japanese costs to assure