Overall Harley-Davidson is currently in good shape. Its retail motorcycle sales through September grew in the U.S. (19.1 percent), Europe (8.0 percent) and Japan (13.9 percent) compared to the same period last year. Harley-Davidson retail sales resulted in market share gains in all major heavyweight moto

The implementation of the above two strategies will have some risks. For instance, if the subsidiary company fails, this may have immense harmful effects on Harley-Davidson. To start the company, Harley-Davidson will have to use a lot of its capital. If the subsidiary company fails, Harley-Davidson will lose all that valuable capital, capital that could have been used for new product development. This outcome may negatively affect Harley-Davidson stock portfolio performance. Harley-Davidson is also at the risk of losing customer loyalty. Even though the subsidiary company will try to market itself as its own company unrelated to Harley-Davidson, people will still know that Harley-Davidson is the parent company. Therefore, Harley-Davidson may be at risk of loosing its reputation as the biggest most profitable motorcycle company.

Implementing the suggested strategies first involves changing the company¡¦s mission statement to include global and international market after the word ¡§general¡¨. By doing this, it is showing that the company as a whole is committed to do what it takes to increase market share worldwide. Then to execute the new European strategy, it may be necessary to hire a top management team who has local and international experience. The management team should also consist of individuals that are familiar with the European culture, Harley-Davidson¡¦s operations, and competitors¡¦ business strategies. As a result of this, Harley-Davidson will be able to achieve a more differentiation and multidomestic strategy approach to its products, which may be necessary to ensure success in the European market.

To implement the second recommendation, Harley-Davidson will first need to allocate capital to the development of the new subsidiary company. The location of the subsidiary company should be close to the existing Harley-Davidson companies, so that valuable resources can be shared among them easily. The new company will need to also conduct research to learn what the younger customers want in lightweight motorcycles. Harley-Davidson may also want to hire a new marketing tea

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