Harley Davidson Inc. Case

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Harley – Davidson Inc. 2008 A. Current Company Situation I. Current Performance Current Performance of Harley – Davidson is ideally acceptable despite the decline in income and revenues from the previous year. Financial figures are excellent at this time but they don’t seem to be following the same trend predictably in the coming years. In 2007, Harley Davidson was the world’s most profitable motorcycle company. They had just released great earnings and committed to achieve earnings per share growth of 11-17% for each of the next three years. During 2005 the company reported the 19th consecutive year of record revenues and record earnings. Currently, the company has been getting good rankings by the popular press. In 2006, Business Week/Interbrand Annual Rankings Top 100 Global Brands placed Harley – Davidson at 1 number up from 2005, #45. Fortune also placed Harley – Davidson in its 2004 list of ‘Most Admired Companies’. Previously, Forbes named it its Company of the Year for 2001, but it is worth noticing that Harley-Davidson did not make Fortune’s list in 2008. Harley- Davidson’s number of motorcycle shipments were 330, 619 in 2007 versus 349, 196 in 2006. Its European market share showed a growing trend standing at 9.6%. The heavyweight bikes dominated the market share with a $49.4 market share value. Despite the company’s strong financial outlook, the current situation is pretty threatened for Harley – Davidson. After 105 successful years of operation, the company shows strong signs of slipping demand. The current situation entailing an economic recession means a weaker dollar that will result in a continued decrease in retail sales, causing excess inventory of high-priced Harley – Davidson motorcycles. The largest consumers of Harley – Davidson, the baby boomer population, are now aging causing a drastic decrease in the customer base of the company.

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