Harley Davidson Case Study: Harley-Davidson, Inc.

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Harley-Davidson, Inc. was founded in 1903 by William Harley and the Davidson Brothers, William, Arthur, and Walter. The first model motorcycle was built in the Davidson’s garage, and was a three-horsepower engine. In 1969, Harley-Davidson saw its first glimpse of competition from Honda, when Honda introduced a four-cylinder motorcycle, which was more advanced than anything Harley-Davidson made. Harley was acquisitioned by AMF around 1969, and that brought more problems for the company. The company began to have problems with quality, financial losses, and a declining market share. In 1981, Harley experienced a buyout led by Vaughn Beals and a group of senior managers for Harley. Harley became an independent, privately owned company, that had acquired with debt. Within one year, Harley lost a total …show more content…
In order to stay afloat, Harley cut costs and gained temporary protection from Japanese imports. By 1986, Harley saw increasing sales, and this started an increase in popularity until the financial crisis of 2008. During the financial crisis, Harley-Davidson saw an end to their growth trend, and it caused excess inventory, debt, and decrease in sales. Since the crisis, Harley has made new waves in the motorcycle industry, and they have continued to innovate to promote success within the company.HaH
Question 1: Identify Harley-Davidson’s strategy and explain its rationale Since 1903, Harley-Davidson has had to change their strategies to fit the economy and competitors in the industry during different periods of time. For instance, during the financial crisis of 2008, the company had to compensate for the decrease in sales and excess inventory. One of Harley’s corporate strategies, was to create the heavyweight motorcycle that are either

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