The local (U.S) market has become increasingly saturated.

ü Harley-Davidson controls 62.7 % of the U.S heavyweight total market.

ü Harley-Davidson maintains a competitive advantage on the basis of value.

ü Harley-Davidson maintains a competitive advantage by the legendary mystique associated with Harleys (Nostalgia, & American dream).

ü Harley-Davidson can be restored unlike Japanese clones.

ü The only remaining American motorcycle manufacturer.

ü Successful revitalization program.

Ø Massive advertising costs required.

Ø Need of high return on investment.

ü The U.S market demand for high quality motorcycles for leisurely use.

ü The worldwide motorcycle industry generates an estimated 5.5$ billion in annual sales.

ü Growth potential for Harley-Davidson is tremendous in the Asia markets particularly Japan and China.

q Marketing the Harley’s differentiated experience.

Ø Decline of overall sales in the industry.

Since the overseas demand for heavyweight motorcycles has been increasingly growing while the local (U.S) market has become increasingly saturated. In addition, the foreign demand is exceeding the existing supplies. Thus, the decision to remain operating as an international company rather than a multi-national one is affecting negatively the market share of Harley-Davidson on this level. The stated reason behind this decision remains the “American Original” image of Harley Davidson bikes. However, American experts and management running the local business can preserve this image carefully. These locally based plants would enhance the productivity of Harley-Davidson without necessarily loosing from the expected quality. In addition, the cost of operating such plants would be economical in such places as China or Eastern European countries. For, the labor cost is lesser than in the U.S. Thus, the international demand can be satisfied and the customer of Harley-Davidson bikes may also benefit from the increased value due to

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