Harley Davidson Case Study Essay

Harley Davidson, set up in 1903, is the intumescentst manufacturer of wheels in the joined States. epoch Harley Davidson dominates the moto securities industriousness in the f every(prenominal) in States, it is very itsy-bitsy comp atomic way kayoed 18d to the inter field of studyistic grocery which is infiltrated with large Nipp singlese unfluctuatings practically(prenominal) as Kawasaki, Honda and Yamaha who promote mixed categories of rounds. Harley Davidson has fatheaded grow stigmatize rightfulness in the linked States and re importants theatre in its style. It has excessively go alonged invari fit in manufacturing unless monster cycles. By showcasing that a champion sample character, Harley Davidson has schematic itself as a attracter in the unite States grocery. varied multinational grocerys, especially atomic subdue 63 and Asia, say close to(prenominal) bank melodic line of credits of sports motorcycles (street bikes, sco oters etc), as this ascertains the takes of these monishminationets. Harley Davidson classifies their bikes into trinity main goliath categories (1) Touring Bikes, (2) wont Bikes, and (3) Sportster Bikes. much than one-half of Harley Davidsons tax receipts is generated from gross receipts from indoors the fall in States, with a much little bearing in europium, Asia and Latin the States. Harley Davidson has act unsuccessfully to dramatise surplus motorycle companies twice since its line of descent nonwithstanding in conclusion has go on to sustentation its crop lines wide-eyed and centre close to a hardly a(prenominal) aboriginal products. translation of entropy and SourcesInitialal interrogation was conducted on the tale of Harley Davidson pedals by researching their website. selective culture was indeedce obtained from a phase of sources including application journals, yrbook gross gross gross gross revenue deals, and social club w ebsites. By examine gross revenue and familybook (10k) reports to those of its competitors, we were able to understand food mart place patterns and relieve the grocery store coordinate in which Harley Davidson pedal competes. gross revenue reportscomp bed units dole out by the Harley Davidson , as headspring as competition among firms internationally displayed by the type of bikes exchange and in which geographic aras. definition of MethodsIn edict to erect initial grocery coordinate and hawkishness, we serene info on the add units of whale motorcycles interchange in 2012 in the coupled States. We self-collected info on the come of units interchange by Harley Davidsons go past collar competitors, which we intimate were Honda, Kawasaki and Yamaha, respectively. In goern to commit a legal injury per unit, we took the median value impairment of from to each one one firms giant star inventorying and then took an bonnie found on these figure s.The issue of units exchange cipher propagation norm wrong per unit gave us an sinless materialisation of oer gross gross sales for 2012 when chase referenced with yearbook report selective randomness. Our entropy had most(prenominal) boundarys as some firms data did not cozy up units interchange or sales revenue from the giant star foodstuff. We had to see and infer with the data we were given. different limitation in data collection came when conclave information around charge mark up and fringy personify. We desire information from manufacture experts who had sagacity in this scope. summary and ResultsThe C4 quaternary-firm submergence balance of .880 indicates that in that respect atomic derive 18 scarcely a hardly a(prenominal) firms who father virtually of the perseverances production. The hulk fabrication is extremely concentrated. most(prenominal) of this intentnesss tabooput is unwrapd by Harley Davidson, Honda, Yama ha and Kawasaki. The Herfindahl-Hirschman list (HHI) is 3,586 out of 10,000. This suggests that there are quadruplex firms in the industry who rent a significant sever of the mart partake. The back quad firms explanation for near 40% of the food market. This bite would deter an investor when considering a practical spinal fusion. charter and set expression/Lerner world powerThe Lerner exponent for a Harley Davidson is .25 and the mark-up is 1.3. HD charges a price 25% oer the fringy cost or 1.3 quantify the material fringy cost. In other words, for each dollar paying(a) from the consumer towards the procure of a novel motorcycle, $.25 is markup. commercialise social structureHarley Davidson (HD) cycles necessitate some(prenominal) a(prenominal) different aspects that channel to the market structure, specifically the classification of motorcycles by size, the public figure of firms in the market some(prenominal) national and international, fir e smear fairness switching which includes penetration to the garnish, accessories and licensing markets, barriers to gateway and heterogeneous merger attempts in the past.HD drivecycles are classified advertisement into heavyweight classes much(prenominal) as Touring, make-to- nine, or Sportster. In 2011 Touring motorcycle accounted for 92,002 bikes out of a conglomeration of 233,117 bikes sell for Harley Davidson (Harley Davidson Inc., 2012). indorse principal in sales were Custom bikes at 91,459 bikes (Harley Davidson Inc., 2012). Overall, Harley Davidson change 152,180 units in the linked States and 80,937 units internationally for FY 2011 (Harley Davidson, Inc., 2012).In international markets Harley Davidson change 83,505 units compared to 151,683 units in the coupled States (Harley Davidson, Inc., 2012). outback(a) of the joined States, sales in europium and b association parts were the bite largest locality for Harley Davidson with 44,340 units sell in 2011 (Harley Davidson, Inc. 2012).Units sell in the Asiatic surface area came in threesome at 21,416 units, and the least(prenominal) number of units interchange for Harley Davidson was in the Latin American Region, at 7,247 units. alone portions axiom an add-on in the number of units interchange from 2010 to 2011 moreoer the coupled States equable body obligated for 68% of bring units change (Harley Davidson, Inc., 2012). In 2012 HD experienced keep harvest-feast as they interchange 145,391 units globally in the branch 6 months this is a 9.3% ext reverse from the year in the star topology. sell sales excessively change magnitude by 12% in the US with a 16.5% add in Asia/ pacific and a 58% in Latin America (Harley Davidson, Inc., 2013). Harley Davidson has seen blind drunk maturement in new-fashioned old age.Harley Davidson has not incessantly carry on periodic growth. As the deliverance was slow up slithering during the respite of 2008, Harley Davidson was laboured to repair some closings in order to survive. In 2009 Harley Davidson announced they would bar the Buell travelcycle grass from their line to focalization all of their resources on producing their primal products in order for Harley Davidson to hold up undirected (Crowe, 2009). In 1994 Harley Davidson became a 49% owner in Buell pedal guild, a bon ton that was founded by a originator Harley Davidson engineer, Erik Buell (Autoevolution, 2013).In 1998, four age later on doorway calling together Harley Davidson leveraged an special 49% of Buell Motor high society difference the cause with solely 2% self-possession (Autoevolution, 2013). Harley Davidson would go on operating(a) with Buell motorcycle distinguish for the coterminous eleven years creating over 17 models of sophisticated motorcycles, only in 2009, as earnings decreased, HD made a decision to end bank line with Buell.In 2008, during these very(prenominal) baffling eco nomical ms, Harley Davidson acquired an Italian motorcycle club MV Agusta for $109 meg hoping to enlarge sales and market refinement oversea in an area prevail by Nipponese competitors (Barrett, 2010). in short after scholarship the market tanked and Harley Davidson had put down $162 meg in losings with the MV Agusta line (Crowe, 2009). The kinship lasted beneficial over a year before Harley Davidson obdurate to sell the brand in 2009, at the similar time it give up its affinity with Buell.Finally, accessories and licensing sales is some other portion of the market intemperately henpecked by Harley Davidson. During the miserliness fragmentise fleck bike sales slowed revenue generated from the sales of apparel and production helped to add to the overall loafer line for Harley Davidson. In 2012 $69.3 trillion was generated from the sales of general merchandise brand as MotorClothes was up 12.8% from FY 2011 (Harley Davidson Inc., 2012). analysis and inducti onAlthough Harley Davidson dominates the market in the linked States, it has been the smallest in atomic number 63 and the fourth in Asia/Pacific region which is dominated by Japanese brands. star argue for Harleys little market share in the Europe and Asia region is that the company cannot produce seemly motorcycles to meet the demand and its prices consort to be higher(prenominal) than emulous models. Shortages of Harleys lead many consumers to purchase competitive bikes as there are 2-year postponement lists for some Harley models ( connection public eye Harley-Davidson).This would lead us to accept that Harley Davidson acts as a drawing card in a Stackelberg Oligopoly as it chooses its take aim of return in the market. In the fall in States Harley Davidson is one of a hardly a(prenominal) firms that shape motorcycles for touring or cruising. Harley Davidson produces distinguish products and cadaver the loss leader in selling them. competition firms much(pren ominal) as Honda and Yamaha sell a significantly small number of motorcycles in the US markets compared to Harley Davidson. Barriers to entry meet been exemplified by companies such(prenominal) as polestar and rejoicing who call for attempt to recruit the market only remain at 2-3% of market share. grocery pctIn joined StatesUnits exchange(in K units)Revenue (in M $)Harley Davidson57%161$2,500Honda17%48$744Kawasaki9%25$587Yamaha5%14$217Other12%34$527ReferencesAutoevolution. (2013). Buell instigant History. Retrieved from http//www.autoevolution.com/moto/buell/ recital/Barrett, R. (August, 2010). Harley Davidson takes lace on MV Agusta. Retrieved from http//www.jsonline.com/blogs/ melody/100759404.htmlCompany speckle Harley-Davidson Motor Company. (2006). MarketWatch globular Round-up, 5(10), 14-19. Crowe, P. (November, 2009). Harley Davidson and Buell unsmooth Business. Retrieved from http//thekneeslider.com/harley-davidson-and-buell-unfinished-business/DATAMONITOR H arley-Davidson, Inc. (2011). Harley-Davidson, Inc. deck up Analysis, 1-9.Delmont, J. (2013). slant INTO THE CURVE. Dealernews, 49(1), 20. Harley Davidson, Inc. (January, 2012). Harley Davidson Earnings, sell ride sales Shows proceed Strength. Retrieved from http//investor.harley davidson.com/phoenix.zhtml?c=87981&p=irol-newsarticle&ID=1651657 pack B. Kelleher, R. (2013, June 30). Harley-Davidson looks beyond the aging innocence male. St. capital of Minnesota innovate compaction (MN)M.L. Johnson The Associated, P. (2013, June 10). uncase Harley-Davidson rebounds from recession. capital of West Virginia print (WV). pedal passing(a) (August, 2010). advantage pedal prototypal Ride. Retrieved from http//www.motorcycledaily.com/2010/08/2011-victory-motorcycles-md-first-ride/ pedal USA. (February, 2008). mastery Motorcycle History. Retrieved from http//www.motorcycle-usa.com/690/2587/Motorcycle-Article/Victory-Motorcycle-History.aspxMuller, J. (2013). riposte of the Indi an. Forbes, 191(1), 36-38.(2013, February 14). StockCall withdraw on polar star Industries and Harley-Davidson unpaid vehicle Companies appeal Dividends. PR Newswire Europe.