Harley-Davidson, Inc.

1876 Words8 Pages
Synopsis: In 1903, two friends, William Harley and Arthur R. Davidson, started to experiment with ideas on building a motorcycle. They’ve made 3 motorcycles that year. 102 years later, Harley-Davidson, Inc. and its subsidiary was producing and shipping domestically and internationally, over 340,000 motorcycles a year, in 35 different models. The company, that was created over hundred years ago, steadily gained almost the half of the market for heavy motorcycles in United States. But this is just one of the things that the company had achieved throughout the years. In 1969, the company was bought out by a leisure and industrial product conglomerate, AMF, Inc. However, even though, the sales were strong, the profits continue to be weak. During the time of AMF’s ownership, the company saw the rise of Japanese competition. The company did not do much to prevent or, at least, to minimize, the impact of competition. And in 1981, the top management of Harley-Davidson division performed a leveraged buyout. After the buyout, the company started to work on gaining back the market. Though, HD bikes were still a lot to work on. At the same time, to reduce wasteful expenses, the management installed MAN (Materials As Needed) system. This helped the company to reduce inventories, raise demand for motorcycles and gain price increase for their products. In 1993, the company acquired 49% interest in Buell Motorcycle Co., which gave the company a slight advantage over light weight motorcycles. And in 1995, HD has acquired the rest of the Buell Company. Additionally, the company tried to make limited edition Harley-Davidson look alike bicycles that were sold for substantial premium prices. However, the management had decided to concentrate on motorcycles, anyway. With the changing environment, in the past decade, the company had made an enormous turnover in their supply chain

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