case presentation: harley davidson inc 2009
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Case Presentation: Harley Davidson Inc July 2009Harley Davidson Inc July 2009
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Despite Harley’s insistence that it was supplying a unique Harley experience rather than competing with other motorcycle manufacturers …
The more it took market share and expanded product range and geographical scope,
the more it came into direct competition with other producers.
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Imitation: V-twin CruisersImitation: V-twin Cruisers
- Closely style- Lower prices- More advanced
technologies
Imitation also included several domestic companies producing retro-styled cruiser bikes: Excelsior, Polaris (Victory) and resuscitated Indian.
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Imitation: V-twin CruisersImitation: V-twin Cruisers
Harley lacked the diversification of its rivals …
-Technology, engineering capabilities - Marketing-Distribution know-how - Bargaining power with suppliers
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Cruiser Motorcycles, 2009 modelsCruiser Motorcycles, 2009 models
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Fury Stateline
Interstate Shadow Spirit 750
Rebel XR650L
Honda Cruisers 2014 - USAHonda Cruisers 2014 - USA
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Price comparison of V-twin, cruiser motorcycles, 2009.
Source: Web sites of different motorcycles manufacturers.
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Solving short-term problems: Cost reduction and production cutbacks.
CEO Keith Wandell
As a result Harley’s share of the U.S. heavyweight market
had jumped from 50% to 58% in year 2009.
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First Half of 2012 in Review: V-Twin Motorcycle Industry Data
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Harley’s core customers are graying baby boomers.
- The average age of rider is 49 (up from 42 five years ago).- Harley keep focus on its aging customers.
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The longer term threats were more troubling … Harley’s future market positioning.
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Ninja EX500Suzuki GS500
Younger crowd => Sport bikesGrowth in the last five years50%
Make smaller, more affordable bikes.
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Ninja EX500Suzuki GS500
Younger crowd => Sport bikesGrowth in the last five years50%
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Harley “Today” Davidson
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Harley “Today” Davidson