Harley Davidson Case Questions Essay

896 Words Feb 3rd, 2014 4 Pages
1. What is the nature of the international business environments Harley faces? What types of risks does the firm face?
The nature of the international business environments Harley faces are complex and varies due to cultural and regional needs of the diverse markets it competes in. This is shown by the differences of the sales mix in U.S. and Europe as revealed in exhibit 1 of the case. For example, in 2006, custom models accounted for 47.4% in U.S., whereas it accounted for 13.4% in Europe. In the U.S., other sales of models based on different criteria such as performance, touring, and standard accounted for 15.1%, 35.5%, and 2.1% respectively. Europeans have different preferences however. Performance, touring, and standard accounted for
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The value Harley’s assets and liabilities may be substantially affected. (4) Commercial Risk: Harley can face this risk if the firm does not enter the potential markets at the appropriate time. Harley also faces competition from BMW, Yamaha, Honda, Suzuki, etc. 2. How can Harley benefit from expanding abroad? What types of advantages can the firm obtain? What advantages acquired abroad can help Harley improve its performance in its home market?
Harley can greatly benefit from expanding abroad. It can extend its product life cycle and create future brand awareness in other countries. One advantage Harley can obtain is its ability to reduce its costs of R&D, manufacturing, and service by sourcing plants in lower-cost locations such as Brazil in order to minimize distribution costs. Reducing the costs in other countries can greatly help Harley utilize their cash properly in the U.S., perhaps build even better motorcycles in the U.S. Harley could be the example of how internationalization optimizes cost structures, by minimizing expenses, leading to higher profits. Global expansion is vital to Harley’s sustainability. 3. How can Harley effectively compete with rivals from Japan and Europe? What strategies should management apply to grow the firm’s sales in those regions?
The Harley image is a powerful weapon. Advertising strategy should emphasize on its global branding, but hire

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