How Did Harley Davidson Competitive Advantage

The history of Harley-Davidson began in 1903, in a 10 ' x 15 ' shed located in the Davidson family 's Milwaukee backyard. The Davidson brothers - William D., Walter, and Arthur – and William S. Harley crafted their first motorcycle using the best tools they had available – mostly their hands and their ingenuity.

Harley Davidson was established in 1903 by William Harley and Arthur Davidson in Milwaukee, WI where they built the first Harley motorcycle, a sports bike, in a small wooden shed. In 1906 the company built a new factory in Milwaukee, WI and also launched its first product catalog this year. The company began to gain a reputation for itself when Walter Davidson, Arthur’s brother, rode a Harley motorcycle to victory in a race in 1908. Harley became known as a company that offers heavy customization of its product for its customers and by 1910 Harley had sold 3,200 motorcycles in the US where its dealer network grew to over 200 separate locations. By the end of 1920, Harley had become the largest motorcycle manufacturer in the world which was supported by over 2000 dealers in 67 countries. The company supplied over 90,000 motorcycles to the US military during the Second World War and it earned the Army-Navy E award for excellence in war time production for three consecutive years. After the World Wars, Harley shifted its focus to more recreational bikes due to increased competition of foreign imports, mostly from Europe. During the late 1950’s, competition from Japanese motorcycle manufacturers like Honda, Yamaha, and Kawasaki began to take over the US market share. By the late 1960’s Japanese motorcycle sales accounted for 85% of total motorcycle sales in the US due to their cheaper and technologically superior bikes. Between 1973 and 1983, Harley’s market share decreased

In the 1900’s there were four Davidson brothers named Arthur, Walter and William and William Harley. Their goal was to create something that could help them travel from place to place in a timely manner. They started working in the back of their home garage, gathering supplies and brainstorming. It took them over three years to come up with a design for a motorcycle. The first carburetor was made from a tomato can, and the spark plugs were the size of a doorknob. By 1903, they had created a bicycle crank which was a bicycle that had one cylinder, motor, attached onto a bicycle. In order to start the motorcycle, one would pedal the bicycle to achieve full compression which would start the engine. Once the engine began running, one would no

Harley-Davidson sent one-third of their bikes overseas to help in the war efforts in 1917 and then half of their production the following year. At this time, they became the largest motorcycle factory in the world. They were even able to survive the “Great Depression”, while many of their competitors had lost the battle. Indian motorcycles were Harley-Davidson’s only competitor to survive the depression. Harley-Davidson had been trying to gain advantage over Indian for quite some time. They finally were able to gain the upper hand in 1936 with the launch of the “Knucklehead” motorcycle.

Question #2 In America and Japan, Harley has shifted the positioning of its products away from simple motorcycles and more toward being status symbols of a particular way of life. Can this positioning succeed in Asia, Africa, and South America? Why or why not?

Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been

Historically, Harley-Davidson has managed to dominate the U.S. market by becoming a staple of American culture. Specifically, the Harley-Davidson motorcycle is considered “a part of American iconography” and is typically associated with well-known American symbols, including both the U.S. flag and the bald eagle. As a direct result of this association, the company has achieved strong and long-lasting brand loyalty among U.S. customers, which has undoubtedly contributed to its great success in the U.S. market.

Early models, dating back to the late 1920s, were in the middleweight motorcycle class, but no one could seem to put their finger on the perfect combination of power and sleekness. Control and comfort were

Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.

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

Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the

Since the founding of Harley-Davidson in 1903 by Arthur and Walter Davidson and William Harley, the company has a rich heritage and a loyal following. The company has proven to be resilient and innovative throughout the years. They have made their fair share of mistakes, especially while under the ownership of AMF, whose decisions almost destroyed Harley-Davidson. They have also made an inspiring come back, recapturing their share of the market and more. Harley-Davidson has managed to attract all sorts of riders including motorcycle “rebels”, women and blue and white color workers. In fact, in our church small group there are two

From 1960-1973, the British share of the US market dropped from 49% to 9% - largely due to Honda’s entry and the subsequent market transformation from one dominated by heavy, powerful and expensive machines to one characterized by lightweight, reliable, and inexpensive motorcycles. The following excerpts from a BCG report to the British government recount the events of the day and offer an explanation for Honda’s success.

The oil crisis in the 1970s prompted the popularity of the smaller motorcycles, mopeds, and scooters that were made primarily by Japanese manufacturers. Dealers sold vehicles to those interested in conserving gas and finding cheap transportation. Harley-Davidson 's market share, already dropping, was further threatened by Honda 's 1969 entrance into the heavy and super heavyweight segment of the market. By the late 1970s Harley-Davidson faced severe production quality problems in addition to stiff competition. A management buyout in early 1981 set the course for the company 's revitalization. It was protection under higher tariffs however, recommended by the International Trade Commission that helped

Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.