Harley Davidson: Preparing for the Next Century

Peeyush Angra
MSc. In Data Analytics

Q1. Critically evaluate the key features of Harley Davidson’s industry?

The foundation of the Harley-Davidson started around the 1900's, in a little shed
in the Davidson family patio in Milwaukee. What began as an aspiration for Walter
Davidson, to be the best bike rider, ended up being into a million dollar business. Walter,
William D. and Arthur Davidson, alongside their long time companion William S. Harley,
assembled their first motorbike utilizing the best accessible instruments, which were their
hands and brains. The Harley Davidson Motor Company was function in 1903 when they
assembled three first model motorbike, thus started its 100 year journey. In 1907, they
had one full-time worker, and they sold 50 bikes, then they added for incorporation of the
company. The Davidson's and Harley were continually experimenting with new
developments to improve their motorbikes better and quicker. The victory of race
increased the level of reputation of the company in 1908 by Walter’s Harley motorbike
with the V twin engine designed by both. This race was one of numerous that Walter
would go ahead to win with his Harley, and inevitably changed the organization into the
world's driving maker of bikes. They were continually hoping to enhance and make the
best machine there could be, and by 1918 Harley-Davidson turned into the world's biggest
motorbike organization by creating 28,000 motorbikes. (Nolan and Kotha, 2007).
With a downfall of the economy in 1920, company started investing in research
and development, they investigated the renowned V-twin outline, manufactured another
four-cylinder engine, and concentrated on enhancing the quality of its machines by
including an electric starter, expand tires, and good parts. The V-twin engine basic outline
enabled owner to tinker with their motorbike engine since engine mechanics did not exist
around then. The Harley bike not just appeared to be unique, it looks extraordinary. The
snarl of the Harley motor was, and still is, portrayed as "a voice: a bassoprofundo pound
that makes different bikes seem like sewing machines. (P. Reid, p. 5). By presenting
bigger and all the more capable cruisers, Harley-Davidson figured out how to stay
beneficial despite the fact that deals declined before World War II.
In the mid-1950s, Harley Davidson turned into the undisputed pioneer of the
motorbike market. Its motorbike were publicized in "biker" magazines and improved
mainly by word of mouth. Harley motorbikes were utilized by the U.S. military, highway
watch officers, the Hell's Angels and Hollywood actors, like James Dean and Marlon
Brando. In the late 1950s, this program extended to incorporate youth "Elvis types"
drawing in dates with their Harley bikes. Due to this customer base, the company
advertisement have shown leather clad bikers, military riders or police officers on
motorbikes. These adds developed a picture of Harley bikes as though extreme since
they were frequently connected with individuals who are willing to live on the edge. The
picture reflected rough distinction and the wilderness soul of the United States. After some
time, the Harley motorbikes turned into a piece of American iconography and was related
with the U.S. signal and the bald eagle, America's national image. This firm results in
exceptional brand loyalty, particularly among U.S. clients, that proceeds right up until
today. (Dutton &Kotha, 1996).
By the mid 1965, to increase the production and raise capital for the new product,
company came in public after 60 years of private ownership. However, unfit to pull in
enough capital, and confronting serious weights from different competitors, Harley-
Davidson was obtained in a friendly takeover by AMF, the mixture of these tow company
helped in giving diversify leisure products. (Dutton &Kotha, 1996). In between1970 and
1980, Harley-Davidson's shares droped by more than 80%. Other Japanese firms,
Yamaha, Suzuki, and Kawasaki, soon took after. Honda, they launched smaller quicker
and more fuel-saving bikes that required almost no upkeep and were simpler to deal s
compared with Harley bikes (Harley bikes weigh between 450 and 800 pounds). These
features pulled in more youthful riders, ladies, and more established riders; riders who
couldn't manage the cost of the more costly Harley bikes; bikers who did not have any
desire to tinker with the bikes. ( P. Reid, p. 6).
Q2. Critically assess the change/transformation process that took place in Harley
Davidson?
The Harley Davidson change started with an organization that was enduring. In the
10 years to 1983, Harley's shares of the overall industry of the 850 CC in addition to
motorbikes classification had dropped from 80% to 23%. The organization was suffering
from money and benefits. Staffs were dampened. The way of life and condition was
harmful. As indicated by Jenkinson and Sain, (2004), the transformation procedure of the
Harley Davidson was separated into two stages:
• The primary phase of the change included simple and tough command and control
management. This was First period of progress administration process. It was
insufficient however to make accomplishment for this energy and commitment of
Harley Davidson. Thus Harley Davidson chose to go second phase of the change
procedure (Jenkinson and Sain, 2004).
• The second phase of the change was in core marketing of Harley Davidson. Harley
Davidson needed to move out of money related direction and influence
administration into shared advertising duty towards vision and values bases in view
of an valuation for the Harley’s identity. (Jenkinson and Sain, 2004).
Harley's issues started it was the organization was sub enhanced inside, with
numerous threatening administration/association connections, and neglected to
coordinate the market in client esteem. The Japanese did not make the issue: they
uncovered the issue. Numerous organizations share this issue. They may have prevailing
with regards to maintaining a strategic distance from the extraordinary issues that Harley
had, regularly by viable first phase management. The challenge is to move into second
stage. Second stages Integrated Marketing depends first on joining everybody around of
significant worth that interfaces with the personality and reason for the association/brand.
This relies upon a significant and shared comprehension of clients and an association
that can deliver value consistently all through all client encounters over the
relationship.(Henshaw and Kerr, 2001).
So as to be fruitful, company must decide clear financial and key goals (Hitt et.al,
2005). Harley Davidson picked up a more prominent share of the overall industry,
accomplished higher item quality than competitor, kept up a more strong relation and a
superior marking procedure than its competitor, due to successful transformation process
company have attain stronger customer loyalty and increased levels of customer
satisfaction.
In the 60's and 70's Harley's vital goal depended on "going shoulder-to-bear against
the prevalently Japanese organizations" (Harley-Davidson, 2009). Harley couldn't
contend on the value level, and the Japanese items were of unrivaled quality, Harley
chose to contend in different zones. Their new technique was to associate with individuals
on a passionate level. They are not offering an item but rather a lifestyle, a state of mind.
Because of fruitful change procedure of Harley Davidson changed its technique from
pitching items to offering group (Teerlink and Ozley, 2000). Also, the way that has built
up a Brand extending technique, which was a component of Harley's accomplishment in
creating associations with clients. Surely, owner can purchase other Harley's items than
bikes; it implies that they can be in excess of a biker, they can join Harley's gathering
purchasing leather accessories or clothes.
Relationship management program result in Harley successful in changing its
scattered buying capacities into a provider. The provider entrance now serves 300 of its
695 providers. In 2004, the organization was stretching out entry access to its
embellishments and stock providers. This year, Harley will have around 300 IT workers.
The division ought to oversee by experienced pioneers who represent considerable
authority in a specific specialized area supporting a key organization work.
Record profit for the primary quarter of 2004 were picked up from a 13% expansion in
deals, the biggest in its history (Nolan and Kotha, 2007). Data Analysts are crediting its
benefit in development and edge control to change in its store network efficiencies. Harley
holds a 46% market shares in heavyweight bikes in the US. The organization supports a
club for its clients, known as the Harley Owners Group (HOG) that enables the
organization to do coordinate statistical surveying and request thoughts for item
improvement and testing from 600,000 individuals. In 2002, the organization created 28
models (more than 263,000 units) of visiting and custom bikes in nine production
provision. Harley Davidson can expand this kind of Sponsor's club that will help the
organization to get the constant feedback in regards to the client's needs.
Q.3 As a leader within Harley Davidson, discuss what you would have done
differently.
Data Analytics can give Harley that knowledge that it needs to enhance its bikes.
By going and getting the data from their more youthful customer target showcase
themselves, they can increase important data about their needs. Investing into data
analytics at various areas the nation over, they will be capable get a decent feeling of
what the larger part needs. They can go out overviews and direct meetings in the feeling
of getting data on: why more youthful shoppers aren't acquiring Harley bikes; what
highlights attract them to different brands; their perspective of Harley and what might
inspire them to buy a Harley bike. Leading an intensive inside and out market examination
will help Harley to become more acquainted with more youthful shoppers. They can
section the market by age sections and get data on what each section different
preferences. What gets these customers to buy an item? Is it accurate to say that we are
expecting the wrong things about these buyers? What do they truly need out of an item?
A decent market examination will give Harley a lot of data about how to approach
attracting more youthful purchasers.
 Harley has situated itself as a "bikers" motorcycle. By doing this they turn away a
vast section of individuals who purchase bikes that don't fit this picture. Another
showcasing effort that shows Harley as a bicycle for anybody could be exceptionally
useful in pulling in new purchasers. Hiring youthful, new confidant promoting team could
get new thoughts for advancement and creative marking ideas.
Bike brands, for example, Honda offer less expensive bikes, however they likewise
offer quality. A downside to Harley is that their costs are higher than different bikes. Harley
needs to figure out how to make a less expensive bicycle with high quality. Harley has a
decent measure of loyal supporters, yet envision the amount more profit they can be on
the off chance that they begin making brand loyalty a more youthful age. They can begin
to make more prominent incomes over the long run, by pulling in customers at a more
younger age.
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