Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Decision making process from a manager's point of view
Decision making is the most critical managerial task
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Key information presented in the case
Harley Davidson is known as one of the main motorcycle manufacturers and sellers in the United States. The company had good business and great market share in the early 1960s when it commanded a total of about 70% 0f the motorcycle market, before the invasion or the intrusion of a small Japanese firm that manufactured lighter motorcycles, known as the Honda. The case study as identifies that Harley Davidson assumed the invasion by the Japanese firm and instead of tackling the competition, it waited for a long time which resulted in the company losing its command in the motorcycle market in the United States. Lack of action by the management of Harley Davidson resulted in the failure of the company which saw it being sold to AMF, an American company although it was later bought by Beals.
After the buyout by Beals, Harley Davidson improved in terms of its productivity after gaining production lessons from the Japanese firm. Furthermore, the company changed part of its marketing move which helped in the improvement in the overall performance of the company. Most people used the logo of the company’s bikes freely and this resulted in bad image for the company. As part of making up and restoring its image, the company decided to license all its logos and any other items that was relating to the company. This helped the company to obtain new customers a part from its already existing customer base. The demand of the products of the company also increased over time after the licensing of the products and the logo of the company. This meant that the company could not satisfy the demand hence this became a problem of its success. The company had also the potential of expanding in terms of exporting ...
... middle of paper ...
... of any given company is of great importance and must be maintained since it tells the customers a lot about the company. In solving the problem of image, Harley Davidson could opt for public image building campaigns. This will involve providing the right information to the public as well as the right quality of products. This can be by word of mouth which the customers will play a big role in or other means. The advantage of this is that more people will be aware of the company and have the right information hence eliminate the perception people had about it. The other alternative that the company may use, and applied was the licensing of the logo of the company. This makes people view the company as serious and the use of its long as something that should be respected. This helped build the image of the company and hence improve the performance in the long run.
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Harley-Davidson, the corporation, has many things to brag about. On top of their financial success over the years, they have built a solid reputation as a fair, honest, and caring company. In January 2002, Forbes magazine named Harley-Davidson its “Company of the Year for 2001and in February, Fortune magazine selected them as one of the nation’s “Most Admired Companies.” Every employee at the company can be proud of these achievements because the corporate culture stresses the importance of all employees. While maintaining a level of success in these areas, they have managed to increase their revenues for the last sixteen years straight. Even in the economic downturn of the last year, Harley-Davidson posted record revenue and earnings.
...es how powerful of a symbol it has become. You wouldn’t consider the fact that someone drives a Honda Accord a defining characteristic of his or her identity but somehow that changes when it becomes a Harley Davidson Heritage Softtail. "Four wheels move the body two wheels move the sole" (Harley Davidson Ad/ 1992). It becomes clear that the motorcycle is much more than a vehicle; it is a manifestation of American values. When you break it down nothing seems more American that freedom, and brotherhood. Film has fully capitalized on these characteristics helping make the motorcycle a powerful image that has had a defining impact on American culture.
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
"Harley-Davidson: At Last" as presented in Hartley's Marketing Mistakes and Successes presents the circumstances around HD's near collapse and since rinse to near mythic success. This case is a great example of marketing myopia; HD saw themselves as full-size motorcycles' manufacturers, not in the transportation, or even the entertainment industry. They believed no one bought motorcycles for transportation, but rather for leisure time use. Like the automotive industry of the time, Harley-Davidson thought its customers would buy its products versus those of any of its major competitors, chiefly because they were all foreign. Interesting enough this was true, HD annual unit sales never changed; they just did not grow with either the market or even the population.
During the 1970's, HD was facing a decline in market share due to increased competition with Japanese companies. By phasing out weak models, becoming more selective, and limiting sales and promotions, HD was able to carve out a niche in the marketplace which it enjoys today. Now again faced with a period of decline, HD is relying on its newly adopted marketing objectives. First, HD needs to expand its potential customer base to include enthusiasts and non-enthusiasts young males, and females into buying HD motorcycles over any other competitor. This thought is accomplished through the introduction of the VRSC’S, and the lower and narrow Sportsters, Dyna’s, Softail’s and positioning them in the market to a younger demographic. Secondly, HD needs to position the VRSC’S, Sporster, Dyna and Softail to also appeal to first time buyers of motorcycles. HD's strong brand identity can help pull in new clients.
Honda, like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, Honda was already famous for motorcycles in UK, but it was less well known in terms of the automobiles. While Honda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Honda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.
According to the Harley Davidson case study, the author has mentioned Harley Davidson uses the differentiation strategy: focus strategy for their business level strategy. This is, the focus strategy is an integrated set of actions taken to produce goods or services that serve the needs of a particular competition segment. Thus, by using the focus strategy for their business level strategy, it can help Harley Davidson to build strong brand recognition for their products. Harley Davidson believes that they understand the dynamics of their market and the unique needs of customers within it very well. Since they serve their customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. As a result, they
The motorcycle industry offers products which can be viewed as luxuries or wants as opposed to necessities. When concerning Harley-Davidson, most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and off-time instead of during the work week. This implies that the motorcycles serve for recreational purposes and thus are an item which can be expendable at times. This has hurt the industry recently with the slight recession the United States economy is facing. Another interesting thing to note about the motorcycle industry is the different appeal bikes carry in different global regions. In the United States for instance, Harley-Davidson has had much success because of the market trends and tastes people enjoy. Harley-Davidson has benefited from a U.S. market which enjoys casual and recreational riding. This isn’t necessarily the case overseas, as in Europe the trendy pick is a sleeker street bike, with a focus on speed and handling as opposed to power and comfort.
Italian manufacturer Piaggio ranks as one of the world’s top four players in its core business. It has consolidated leadership in the European 2-wheeler market. Piaggio should not miscalculate its competitors. Competition in the industry is very powerful, not only nationally but internationally as well. This is due to two well-established companies in this sector which are the Japanese Yamaha and Honda. Yamaha and Honda strengths are their long-run experience in the sector and the high quality image of products. Due to participations to the motorcycle championships, these two companies constantly receive positive feedbacks to their efforts in researching for first class products. In the future, other kinds of competitors are expected to arise: Chinese companies whose ability to imitate and create similar products at highly competitive prices is getting more and more dangerous (Piaggio, 2008)
Hunsk Engines is a motorcycle company that made the fatal mistake of expanding its research in the market on its new products. The companies main competitors were companies like Harley Davidson, where they sold classic products that were seen as something with altering respect. Marty Echt is hired on by Hunsk Engines to restore the company’s image, on what used to be classic motorcycles. He argues that the company made the mistake of forgetting about its original products and, “lost its identity”. This problem frequently happens when companies attempt to grow, in order for new products to make it in the market place you have to carefully strategize its competitive characteristics and know when to introduce a new product through Michael Porters life cycle.
James, W. B., & Graham, B. (2004). Strategic change in the face of success? Harley-Davidson, Inc. Strategic Change, 13(4), 205.
This case depicts about the success stories of the collaboration in the automobile industry by the Japanese and US firm though they were obviously competitors. One significant success story emerging from the alliance involves Ford probe and Mazda MX-6. There were swapping of resources and capabilities between the two firms. Mazda designers design the basic platform, engine and drive train for the cars. Mazda then design the outside of the MX-6 and Ford does same for the probe. Finally both cars are assembled at a factory owned by the two firms. Ford escort was another successful offspring of the alliance where again the Mazda engineers designed the car and Ford made it. But the alliance was not without spots. Mazda Navaho one of the offspring of the alliance which was basically build upon the on of the Ford popular product Ford explorer and build by the Ford makers. Ford made an opposite step by denying to provide the Japanese partners Navaho production to continue production of its own product line. The partner Mazda in addition fell into financial distress and Ford got the effective management control of Mazda and took some bold steps which eventually went against the collaboration.
Harley-Davidson institutes a pull strategy in the promotion of the FXDS-CONV Dyna Convertible. Due to the limited number of dealerships (for example, there are only five in Nashville and the surrounding communities) customers must actively seek out a location to purchase this bike. Also, because so many customers decide to customize their Dyna Convertibles, they must place a special order with the dealer, who in turn must contact intermediaries along the distribution channel in order to satisfy the customer. Further, the fact that demand for Harley motorcycles far exceeds the supply indicates that a pull strategy is in place.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or