The Case Study Of Harley-Davidson Inc.

Harley-Davidson Inc. founded in 1903 and produced most of its motorcycles to be sold to the US military during World War 1. In 1953, Harley-Davidson became the only US motorcycle manufacturer for the next 46 years (Harley Davidson Museum). In 1988, Mr. Richard Teerlink was appointed the Chief Operating Officer of Harley-Davidson Inc. until 1997 (Bloomberg). Mr. Teerlink started with Harley around 1981 as VP and CFO of Harley, which was when the company was trying to reshape its corporate culture. This was a time when the company was facing serious competition from Japanese motorcycle manufacturers like Honda, who were continuing to take up US market share since the 1960s. Harley-Davidson Inc. had to transform itself and break away from the

In 1983, the company started to see growth in US market share of the leading motorcycle manufacturers. The company was able to grow due to the quality of the bikes being enhanced and production efforts being more efficient. Upper management also started what is called Harley Owners Group (HOG) to start the excitement between customers. This was a great way for the company to better its culture and give customers an opportunity to connect with each other and share stories. HOG eventually became a big success as the company continued to grow. Within six years from when the club started, it had 90,000 members, but now it is the biggest motorcycle club in the world with over 500,000 members. This is partly because Richard had helped Harley-Davidson became an international brand, which attracted more members to the club. In 1987, the company petitioned to the International trade commission to end the 5-year tariffs on heavyweight motorcycles, which was the same tariff Harley fought to lower their competition 's market share (Harley-Davidson Museum). This shows the confidence in the management and leadership style of Richard Teerlink to bring back Harley Davidsons ability to compete in the

Teerlink was the CEO of Harley Davidson Inc. he restructured the informal culture of the company into a formal culture. This allowed people of the company to be more aware of the company’s goals and offered them a new style of training. He did this to become on the same level of efficiency as the Japanese competitors. In an interview, Mr. Teerlink was asked what set Harley Davidson apart from its competitors he responded saying, “Harley-Davidson doesn 't sell transportation, we sell transformation. We sell excitement, a way of life" (New York University). This was a good description of what Mr. Teerlink had planned for the company and how he would start Harley-Davidsons international venture. He knew the company had a niche in the heavyweight motorcycle industry with its brand name, so the company started licensing deals. The company produced many items for owners, such as t-shirts, jewelry, and leather goods, which they expanded into their international markets. In 1993, the company was able to acquire a 49% interest in the Buell Motorcycle Company. This allowed Harley-Davidson engines to be built with performance motorcycles, which opened a new market for the