Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American manufacturers to survive the Great Depression. Harley-Davidson also survived a media-accelerated negative image of motorcyclists, a period of poor quality control, and competition with Japanese manufacturers, Honda in particular. In 1903, their first year, the company's entire output was only 1 motorbike; however, by 1910, the company had sold 3,200. Movies such as Easy Rider made Harleys a cultural icon and soon the company attracted people who loved its bad-boy mystique, powerfulness, rumbling voice, distinctive roar, and toughness. It sounded like nothing else on the road, and even Elvis Presley longed to ride one.
Ducati 1. How did Ducati become the second most profitable motorcycle maker in the world? - First, Ducati had a very good product. It is unique, beautiful performance motorcycles - Second, Ducati had a group of top-notch engineers- both in the R&D and in the racing divisions- whose main goal was to continue defeating; The company is driven by its excellent engineers and designers - Third, Ducati has a brand with strong potential. In major European markets, Ducati’s brand loyalty ranked among the highest in the motorcycle industry, with about 55% of its small customer - Continuing outsourced most of the production activities from 80% to 90%, mainly by a firm that is highly efficient - A platform approach to production.
This strategy worked well to stabilize the market shares since early 90s to 2003. Concentration: Harley Davidson uses a differentiation strategy. They initially focused on heavy and super-heavy bikes targeting specific group of customers (men, in average 42-49 years old)??. (Rather be stated as mid to late forties, because I saw ages 35 – 54??). Unlike its competitors Harley was highly market focused.
This will ensure more delivery fees and more paperwork for the company. The company will have to account for promotional items that the wholesale companies may offer for products being bought. A positive trade-off for the company will be the use of software which may or may not be already
Rob Johnson, IMF executive director said, "Telling the whole story about unionization is important and if more companies put as much effort into working with unions in a proactive way rather than spending millions on preventing unionization the results would be evident." (Fortune, 2012, p. 1). As part of the Automaker's union, Ford Motors family has grown extensively in the last several decades. The employees at Ford, as unionized workers with the UAW, successfully have developed Ford into one of the largest manufacturers in the United States. Fords benefits from unionization because the union contracts can be negotiated and any work issues can be resolved, such as workplace safety, wages, and benefits.
Many of Harley Davidson’s competitors have achieved product diversity and offer a wide range of products. Harley Davidson, alternatively, has decided to focus on their primary product and improve and innovate their motorcycles. Additionally, it is arguable that they focus on a certain clientele demographic and geographical area. 80% of Harley Davidson’s products are sold in the US, although it is a multinational country, this is a large emphasis on one area. Also, they have focused on a narrow end of the motorcycle market paying particular attention to the slightly older clientele with higher disposable income.
The target customers of the company are middle-aged people who are now ageing and the youth is more attracted towards technologically advanced sports bike. Moreover, the strategy with which Harley Davidson got so much popularity in US is not paying off in international market, as it can be seen by their market share which is 55.7%, 13.7%, 21% and 7% in North America, Europe, Asia Pacific and Latin America respectively in the year 2011 for heavyweight motorcycle segment. Even low production volume in comparison to its competitors has imposed significant cost disadvantages to Harley Davidson. Analysis From 1984 to 2008, Harley Davidson enjoyed dominance in US market and a continuous growth rate in its output and revenue. It can be attributed to its 3M strategy, i.e., Management, Marketing and Manufacturing.
The environmental factors that affect global and domestic marketing decisions for Harley-Davidson Motorcycles XXXXXX MKT/421 February 6, 2012 Gabriel Renero The environmental factors that affect global and domestic marketing decisions for Harley Davidson Motorcycles Harley Davidson Motorcycles has been building, selling, promoting, and marketing their motorcycles since William S. Harley completed a blueprint drawing of an engine designed to fit into a bicycle in 1901. In 1903 William S. Harley and Arthur Davidson make available to the public the first production Harley Davidson Motorcycle. One year later, the first Harley Davidson dealer opens for business (History of Harley Davidson, 2012). Harley Davidson is the world’s most recognized motorcycle and brand name for motorcycles, synonymous with words like; freedom, America, biker, 1%er, HOG, and more. It was 111years ago since that first blueprint drawing by William S. Harley, and Harley Davidson as of present time has five basic models (over 75 sub-models).
for sustainability. Industry Products: Ducati’s products in Hyper-sport, Super-sport, Naked,S port-Touring subsegment products have a great success and they also have limited editions. Also spare parts, accessories and apparels Spare parts availability catalogue went from 10,000 items to 15,000 from 1997 to 2000 Custom-made bike components , high-quality Ducati-branded riding gear “they should emphasis this and can grow like this” “Suggestion” Harley has too, (12 % of total revenue) they should follow them. Outsourcing: policy is aggressive 87 % Majority of its suppliers belonged to the Emilian district “collaborating some firms to form the Engine Technology District” Number of suppliers decreased to be more selective Only short-terms contracts with its suppliers elasticity as the need arose something else But eventually they have to create sustainable models Distribution: First multi-franshising distribution Now new strategy:”taking control of distribution and marketing in strategic markets by establishing ttotally owned sales and marketing subsidiaries .Ducati established subsisieries in Japan,France,Germany,UK and Holland. Not increase geographical reach but improve average quality of the dealers-competent sales force Ducati stores chains They can…grow…..
From the railroads in the past, we have learned that faster transportation is better. Everything we need travels by boat or train or plane because we understand that is one of the most successful forms of transportation. Bye replacing home-based workshops with factories we have been able to grow our production rates which in the long run put our selling rates high. By switching from hand tools to large machines we have also been able to cut our jobs down, which allows for more money in the pockets of the business men. The industrial revolution has helped the nation and economy grown so much over the time but we know, nothing is perfect.