Harley davidson

Harley Davidson – Case brief

Harley Davidson’s operational and financial performance during the 25 years since a management buyout has been spectacular. Harley exemplifies the performance benefitsof a strategy that exploits limited resource strengths while protecting against a broad array of weaknesses relative to Harley’s bigger rivals. In May 2009, Harley’s new CEO, Keith Waddell, wasfacing Harley’s first decline in sales and profits in 25 years. Harley’s current financial situation is due to the current recession and the saturation of their baby boomer customer base. Harley needs tofigure out a way to attract younger crowd, to increase its sales revenue and improve efficiencies in its operation.
Harley’s biggest appeal was how easy the engine was to tinker with and thecustomizability, but most of all the sound of raw power was what owners loved. This love for raw power and made in America machinery, brought many loyal customer to Harley. Harley is an American icon and wasnow associated with things like the U.S. Flag and bald eagles. During the 1980’s, Harley formed a Harley Ownership Group known as HOG. With 900,000 members worldwide, Harley’s HOG group has more than9 times the members than any other company in the industry. Harley was the Industry leader with a growing market share of 49.3% in North America and 11.7% in the Europe. The critical issues Harleyfaced and continue to face over the years is, they apparently failed to consider a large market segment – Technology oriented younger crowd. Harley’s close association with baby boomers is likely tomake the brand harder to sell with the younger generation.
Harley needs to engage the younger generation as the baby boomers sales will eventually decline. As the author writes” The stronger the brandis with the older generation, the weaker it is with the younger generation”. Harley’s demographics are changing; however its products fail to change with the times. Younger generations have become...