Harley Davidson Case: Harley's International Business Strategy

1235 Words 5 Pages
Harley faces a few international business environments that can potentially diminish their brand completely. Needless to say, they have a lot of competition that is sitting right on the shoulders of their brand. You have major competitors like Honda, Kawasaki, Suzuki, and Yamaha selling motorcycles that were a lot cheaper in price compared to those of Harley Davidson. All of the above competitors are part of the foreign market in reference to bikes that are known to be more lightweight than the heavy weights Harley’s. Harley took a slow start in engaging into that whole industry as a whole because once those competitors entered the market, they were manufacturing bikes that were not only more lightweight, but also much cheaper. Brands like …show more content…
Not only does Europe cause a red flag in regards to their size roads, but also the fact that China is “home to 1.3 billion people” and those individuals there ride small bikes. In addition, their average wages are very low compared to the US; therefore, it is sort of a struggle for people to go out and buy these huge bikes that cost up to $18,000 when they are working average wages. In addition, China has a tendency of counterfeiting other foreign brand products and reproducing them to make them a lot cheaper so their profits can grow a lot faster then the original entrepreneurs. Also, some parts of China restrict the usage of motorcycles to prevent the loud noises, so therefore; Harley won’t have the capability of marketing to those individuals. Besides those facts, Harley will have to take a closer look at places like Delhi, India where they have a high GDP where millions of households have incomes that are above the $80,000 mark. However, knowing that those people have price incomes at that level would mean a lot of business by targeting them. But not so fast, in Delhi, they have paused the whole market entry due to the high trade barriers and also the local emission …show more content…
Their presence in the states is slowly diminishing. I remember at least 6 or 7 years ago, I saw Harley’s everywhere. Not you only see a couple here or there. Most people don’t have $18,000 or so thousand to spend on a bike. Since they primarily advertise to people (guys) over 50, most of those individuals are having different priorities so their heavyweight bikes are suffering. Everyone has a number on them and notice what kind of company they are. Now that I think about, I see a lot more of the Honda and Suzuki bikes than the Harley’s. When their reputation has diminished, they brought in the CEO to try and revive the business, but I don’t believe that they will ever fully recover unless they do something drastic. The US population believes that they are lacking the effort of innovation to try and build a bigger audience. However, they are somewhat on the right track with creating the Harley Owners Group that initiates promotions to customers in Europe. They should sit down and think about strategies of how to make better quality bikes for a cheaper price that moves atop the competition. By moving abroad, Harley insinuates a new crowd that is not used to the bombardment of heavyweight bikes like they are in the US. By expanding abroad, they have a brand new audience with different wants and needs than they do in the US. The US economy is known to be very stagnant, and there seems to be a lot of

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