This has become rather important especially seeing as unmet demand has potential of yielding a loss in sales. The purchasing organization at Harley-Davidson has become tightly integrated with engineering and manufacturing in order to provide each of the organization's sites with appropriate inventories. Also, there has been successful implementation of two manufacturing facilities on-line for additional support. This is especially important as the company has been experiencing capacity constraints during times of sustained market growth, which has also caused a loss in international market share. These factors will also aid in addressing the long lead times for products.
EXTERNAL ANALYSIS (refer to Appendix B).
Harley-Davidson became an American icon. Although it carries a gangster image, owning a Harley is considered one of the most popular ways in socializing with people having the same interest. .
The motorcycle industry is very attractive due to the low cost in production and high profit specially when compared with the car industry. This may draw many competitors into the business, perhaps other car producing companies who already may have a following of their own e.g. BMW.
One main threat to Harley's base is the economy. The interest in purchasing bikes drops down as the economy takes a downturn or fuel prices rise. The motorcycle is considered as an "upper-middle-class toy" meaning that as more and more people run out of disposable income, fewer and fewer Harleys will be purchased.
In addition, Harley is facing a very strong competition from rivals such as Honda, Yamaha, Kawazaki, and BMW with what is called light sports bikes this led to the domination in market shares by Suzuki, Yamaha, and Kawazaki in this category. .
As globalization is taking over Harley Davidson has an advantage to open more manufacturing plants and dealerships around the world, this will add profit sources.
Motorcycle Industry INTRODUCTION The purpose of this report is to develop a strategic corporate objective for HarleyDavidson Inc., a publicly traded, employee owned manufacturer of heavyweight motorcycles, recreational and commercial vehicles, military defense items, and small engines, distributing its products to domestic and international markets targeting all men and women of all ages. ...
