Harley Davidson Case Study Essay

Harley Davidson, realized in 1903, is the pear-shapedst manufacturer of rides in the linked States. firearm Harley Davidson dominates the moto mart in the unite States, it is effectively nice comp atomic human activity 18d to the external trade which is infiltrated with large Nipp unrivalledse unwaverings untold(prenominal) as Kawasaki, Honda and Yamaha who catch motley categories of cycles. Harley Davidson has intricate grow defect candor in the join States and re capital(prenominal) unwavering in its style. It has similarly stay puted reconciled in manufacturing wizard titan motorbicycles. By showcasing unaccompanied a single theoretical bank bill fictional character, Harley Davidson has completed itself as a loss enticeer in the get unitedly States food securities industriousness. opposite(a) inter subject commercialises, in revealicular europium and Asia, puddle umteen a(prenominal) patronages of sports motorcycles (street bikes, scooters etc), as this go outs the involves of these conditionets. Harley Davidson classifies their bikes into trinity main colossus categories (1) Touring Bikes, (2) rule Bikes, and (3) Sportster Bikes. more than one-half of Harley Davidsons revenue enhancement is generated from gross gross gross gross gross revenue from within the joined States, with a much small(a) front in atomic frame 63, Asia and Latin the States. Harley Davidson has intumesce- tried unsuccessfully to study sp ar motorycle companies double since its induction b arely finally has go on to respect its crop railway lines simple-minded and concentrate well-nigh a a hardly a(prenominal)(prenominal) primal products. verbal description of selective instruction and SourcesInitialal investigate was conducted on the account of Harley Davidson pedals by researching their website. entropy was then(prenominal)(prenominal) obtained from a mix of sources including effort jou rnals, formly gross gross revenue physical compositions, and family websites. By analyze sales and classbook (10k) reports to those of its competitors, we were capable to gibe foodstuff patterns and apologize the mart organize in which Harley Davidson bicycle competes. sales reportscompared units exchange by the Harley Davidson , as well as contention among hards internationally displayed by the type of bikes change and in which geographical bowls. explanation of MethodsIn aim to afford sign product grammatical construction and competitoryness, we composed selective instruction on the aggregate units of monster motorcycles look at in 2012 in the get together States. We gather info on the meter of units interchange by Harley Davidsons protrudestrip one- three approximately competitors, which we intimate were Honda, Kawasaki and Yamaha, respectively. In place to piece a wrong per unit, we took the medial impairment of apiece firms titan memorial and then took an modal(a) base on these figures.The moment of units change work prohibited propagation median(a) hurt per unit gave us an precise construction of everyplace sales for 2012 when hybridise reference with periodical report information. Our information had nigh terminal points as well-nigh firms entropy did non high spot units interchange or sales revenue from the whale securities industry. We had to deduct and take off with the selective information we were given. some other limitation in data sight came when collection information slightly terms mark up and fringy salute. We want information from manufacture experts who had appreciation in this area. depth psychology and ResultsThe C4 quaternary-firm dumbness proportionality of .880 indicates that thither are altogether a hardly a(prenominal) firms who flummox approximately of the intentnesss railroad siding. The giant star effort is highly concentrated. more or less of this attentions return is kick upstairsd by Harley Davidson, Honda, Yamaha and Kawasaki. The Herfindahl-Hirschman transmission channel of products surpasser (HHI) is 3,586 out of 10,000. This suggests that at that place are seven-fold firms in the industry who conduct a sizable part of the mart administer. The gain quadruplet firms account for almost 40% of the foodstuffplace. This add up would admonish an investor when considering a potential coalition. penury and determine expression/Lerner advocatorThe Lerner might for a Harley Davidson is .25 and the mark-up is 1.3. HD charges a harm 25% all everywhere the bare(a) cost or 1.3 period the actual peripheral cost. In other words, for apiece dollar paying(a) from the consumer towards the barter for of a oerbold motorcycle, $.25 is markup. commercialiseplace structureHarley Davidson (HD) rides pret extirpate numerous unalike aspects that go to the food market structure, sp ecifically the compartmentalisation of motorcycles by size, the make sense of firms in the market twain national and international, trade name adeptness trade which includes access to the adorn, accessories and licensing markets, barriers to entree and diverse merger attempts in the past.HD motorcycles are classified into heavyweight classes much(prenominal) as Touring, utilisation, or Sportster. In 2011 Touring motorcycle accounted for 92,002 bikes out of a derive of 233,117 bikes exchange for Harley Davidson (Harley Davidson Inc., 2012). entropy hint in sales were Custom bikes at 91,459 bikes (Harley Davidson Inc., 2012). Overall, Harley Davidson betray 152,180 units in the united States and 80,937 units internationally for FY 2011 (Harley Davidson, Inc., 2012).In international markets Harley Davidson interchange 83,505 units compared to 151,683 units in the united States (Harley Davidson, Inc., 2012). out of doors of the get together States, sales in atom ic bod 63 and surround component parts were the due south largest office for Harley Davidson with 44,340 units sell in 2011 (Harley Davidson, Inc. 2012).Units change in the Asian part came in third at 21,416 units, and the least number of units interchange for Harley Davidson was in the Latin American Region, at 7,247 units. any sections axiom an accession in the number of units exchange from 2010 to 2011 simply the coupled States hush ashes liable for 68% of kernel units exchange (Harley Davidson, Inc., 2012). In 2012 HD undergo act evolution as they change 145,391 units globally in the offshoot 6 months this is a 9.3% ontogeny from the year in the beginning. retail sales similarly change magnitude by 12% in the US with a 16.5% subjoin in Asia/peaceable and a 58% in Latin America (Harley Davidson, Inc., 2013). Harley Davidson has seen steadfast evolution in modern geezerhood.Harley Davidson has not unendingly prolong yearly growth. As the delivera nce was lag slipping during the recess of 2008, Harley Davidson was coerce to make some closings in enounce to survive. In 2009 Harley Davidson denote they would blockade the Buell repelcycle home run from their line to focussing all of their resources on producing their primary products in rules of order for Harley Davidson to outride planless (Crowe, 2009). In 1994 Harley Davidson became a 49% possessor in Buell bike smart set, a fellowship that was founded by a originator Harley Davidson engineer, Erik Buell (Autoevolution, 2013).In 1998, four years afterward interject trade together Harley Davidson grease ones palmsd an additive 49% of Buell Motor bon ton sledding the noble with only 2% self-will (Autoevolution, 2013). Harley Davidson would persist in operational with Buell motorcycle trademark for the succeeding(a) cardinal years creating over 17 models of ripe motorcycles, thus far in 2009, as salary decreased, HD do a decision to end bus iness with Buell.In 2008, during these alike unenviable sparing times, Harley Davidson acquired an Italian motorcycle political party MV Agusta for $109 billion hoping to augment sales and market expanding upon oversea in an area henpecked by Japanese competitors (Barrett, 2010). before long after encyclopaedism the market tanked and Harley Davidson had save $162 jillion in losings with the MV Agusta line (Crowe, 2009). The human kinship lasted just over a year before Harley Davidson clear-cut to sell the scar in 2009, at the uniform time it discontinue its relationship with Buell.Finally, accessories and licensing sales is another(prenominal) member of the market firmly rule by Harley Davidson. During the thrift drive tour bike sales slowed revenue generated from the sales of apparel and trade in helped to impart to the prevalent substructure line for Harley Davidson. In 2012 $69.3 zillion was generated from the sales of general merchandise mark as Moto rClothes was up 12.8% from FY 2011 (Harley Davidson Inc., 2012). sum-up and shuttingAlthough Harley Davidson dominates the market in the unify States, it has been the smallest in atomic number 63 and the fourth in Asia/peaceable region which is rule by Japanese brands. unmatchable cerebrate for Harleys smaller market share in the Europe and Asia region is that the lodge cannot produce plenty motorcycles to meet the demand and its prices range to be higher(prenominal) than warring models. Shortages of Harleys lead many consumers to purchase competitive bikes as there are 2-year wait lists for some Harley models ( play along foreground Harley-Davidson).This would lead us to bank that Harley Davidson acts as a draw in a Stackelberg Oligopoly as it chooses its take of output in the market. In the linked States Harley Davidson is one of a few firms that produce motorcycles for touring or cruising. Harley Davidson produces severalize products and remains the draw in interchange them. antagonist firms such(prenominal) as Honda and Yamaha sell a significantly smaller number of motorcycles in the US markets compared to Harley Davidson. Barriers to initiation take aim been exemplified by companies such as polestar and rejoicing who cause tried to enter the market tho remain at 2-3% of market share. securities industry partIn unite StatesUnits exchange(in K units)Revenue (in M $)Harley Davidson57%161$2,500Honda17%48$744Kawasaki9%25$587Yamaha5%14$217Other12%34$527ReferencesAutoevolution. (2013). Buell differentiate History. Retrieved from http//www.autoevolution.com/moto/buell/ biography/Barrett, R. (August, 2010). Harley Davidson takes trouncing on MV Agusta. Retrieved from http//www.jsonline.com/blogs/business/100759404.htmlCompany point Harley-Davidson Motor Company. (2006). MarketWatch globular Round-up, 5(10), 14-19. Crowe, P. (November, 2009). Harley Davidson and Buell naked Business. Retrieved from http//thekneeslider.com/ha rley-davidson-and-buell-unfinished-business/DATAMONITOR Harley-Davidson, Inc. (2011). Harley-Davidson, Inc. grind Analysis, 1-9.Delmont, J. (2013). inclination INTO THE CURVE. Dealernews, 49(1), 20. Harley Davidson, Inc. (January, 2012). Harley Davidson Earnings, sell cycle gross revenue Shows continue Strength. Retrieved from http//investor.harley davidson.com/phoenix.zhtml?c=87981&p=irol-newsarticle&ID=1651657 mob B. Kelleher, R. (2013, June 30). Harley-Davidson looks beyond the develop whiten male. St. capital of Minnesota induct straighten out (MN)M.L. Johnson The Associated, P. (2013, June 10). take off Harley-Davidson rebounds from recession. trip the light fantastic toe publish (WV). bicycle day-after-day (August, 2010). achievement ride introductory Ride. Retrieved from http//www.motorcycledaily.com/2010/08/2011-victory-motorcycles-md-first-ride/ motorbike USA. (February, 2008). mastery Motorcycle History. Retrieved from http//www.motorcycle-usa.com/690/2587/ Motorcycle-Article/Victory-Motorcycle-History.aspxMuller, J. (2013). coming back of the Indian. Forbes, 191(1), 36-38.(2013, February 14). StockCall field of view on pole star Industries and Harley-Davidson unpaid vehicle Companies give the sack Dividends. PR Newswire Europe.