Harley Davidson Case Study

Harley Davidson - Harley Davidson Case Study Bus-J 401 Hassan Al-Goraish Eric Su Harley Davidson was founded in 1903 in Milwaukee by Bill Harley

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Harley Davidson Case Study Bus-J 401 Hassan Al-Goraish Eric Su 07/18/2011
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Harley Davidson was founded in 1903 in Milwaukee, by Bill Harley and Arthur Walter Davidson. That same year was the birth year of the first Harley Davidson one-cylinder motorcycle. This beginning gave a spark to a global company that holds a large percentage of the largest market for motorcycles in the world which is North America (SCA-H D). The economic characteristics for Harley Davidson begin with its unique market segments. The company’s distinct subsets of potential target markets include the sex factor. About 88 percent of Harley Davidson consumers are male. Another factor is age; the median age for Harley Davidson riders is 45 to 50 years of age, making the company very much dependent on aging baby boomers; the reliability that boomers would spend their recreational time on touring the country on motorcycles. The company shifted its attention in order to make motorcycles that were appealing to a market of potential riders in their 20s (case 20). Although these two factors say a lot about the company’s target market, there happens to be 52 percent of the purchasers who previously owned a Harley Davidson bike at some point before. The size of the company is intimidating for the serious competition such as Honda, Kawasaki, and Suzuki. The Harley Davidson Company maintained a 50 percent market share through 1998 to 2003 for heavy weight motorcycles, according to case 20. Also, being listed in Fortune’s annual list “the 100 best companies to work for” on the other hand being ranked third behind Rolls-Royce and Mercedes-Benz in terms of quality according to Harris Interactive(Case 20). One important reason for this sustainability is the fact that the major competition has main product lines including automobiles, in which they have to focus on. This fact gives Harley Davidson an incredible advantage over those companies. However, the growth rate has slightly declined over the past years in part due to the market maturity. The company needed to expand its lines to Europe, keeping in mind that riders in Europe tend to be attracted to performance, reputation, and speed. Rather than comfort which is a big concentration of Harley Davidson. The best market and geographic segments that would potentially give the company opportunities to grow is to promote more motorcycles targeting women. The reason is because the percentage of men buying Harley Davidson motorcycles is so high, if the company can increase female sales by at least 10 to 20 percent it would make a great difference. Another growth opportunity is to expand the breadth of the lines, making Harley Davidson motorcycles lean more towards performance and speed
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This note was uploaded on 07/18/2011 for the course BUS 401 taught by Professor Wendeln during the Spring '11 term at IUPUI.

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Harley Davidson - Harley Davidson Case Study Bus-J 401 Hassan Al-Goraish Eric Su Harley Davidson was founded in 1903 in Milwaukee by Bill Harley

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