Harley - Davidson Inc. Motorcycle Industry
INTRODUCTION
The purpose of this report is to develop a strategic corporate objective
for HarleyDavidson Inc., a publicly traded, employee owned manufacturer of
heavyweight motorcycles, recreational and commercial vehicles, military defense
items, and small engines, distributing its products to domestic and
international markets targeting all men and women of all ages.
INDUSTRY AND COMPETITIVE MARKET
The industry under study is the motorcycle industry consisting of five
major manufacturers: one American (Harley Davidson), and four Japanese (Honda,
Yamaha, Kawasaki, Suzuki) and some European companies (mainly BMW of Germany and
some other Italian companies). Most companies market their motorcycles and
accessories on a worldwide basis, handling international trade through foreign
distributors and domestic sales through franchised outlets. Industry sales of
motorcycles were shrinking in the early l990s because of the recession and the
competition from computers and electronic products decreasing consumers'
discretionary income.
Sales of accessories and parts make up 36% of total retail sales and is a
viable area for producers to explore because people want something to
differentiate their bikes. Previously, motorcycles were viewed as a cheap means
of transportation. By 1992, they came to be viewed as a recreational, or a
luxury item. This new perception of motorcycles led to the introduction of more
expensive models with higher prices. This led to the introduction of consumer
financing, one of the fastest growing service areas in the motorcycle industry.
MISSION< ...