Case Study

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FACTS: * Executives at Harley-Davidson realize the importance of people to an organization’s success. * Harley- Davidson also makes use of another component of the 4-P cycle: product. Harley managers understand the relationship between customer satisfaction and product quality. * Harley- Davidson went from near bankruptcy to an 80% increase in revenue and 65% of the market share by taking advantage of its tremendously loyal customer base. * What Harley riders said they wanted was simple: a bike that didn’t fall apart. * Today Harley’s customer base has reached cult proportion. * Harley-Davidson illustrates how the principles of TQM helped revive this American institution. DICUSSION QUESTIONS: 1. Why was it important for Harley- Davidson managers to listen to their existing customer base as well as to take a closer at how the motorcycle market was changing? * It is important for Harley- Davidson managers to listen to their existing customer base as well as to take closer at how the motorcycle market was changing because the success of their business depends to them, if they do not develop the customer satisfaction they could lose them. The customer makes it possible to achieve business aims. 2. Explain how managers at Harley- Davidson achieved profitability through the 4-P Cycle of Continuous Improvement. * Harley-Davidson has cultivated close relationships with dealers and provided a full line of products, such as clothing, to expand the profitability of the Harley brand. Dealerships have become a gathering place for the dedicated Harley members where jam sessions, cookouts, swap meets and other events are most popular. Price - Pricing is an important tactic of the Harley strategy, as the company has been unable to produce enough bikes to satisfy demand. But Harley has not increased the price. Rather, HD seeks a reasonable

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