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OVERVIEWPROBLEM STATEMENT The following are the problems of Harley Davidson 1 Declining market 2 Poor economic climate 3 Competition from Japanese manufacturers 4 Poor quality of products 5 Young Generation not buying the product COMPANY PROFILE The Davidson brothers William D William S Walter and Arthur founded Harley Davidson Inc in 1903 In the first year only three motor cycles were produced In 1904 production increased to eight motorcycles Company present office is located at Juneau Avenue in Milwaukee USA In 1907 the company was incorporated In 1965 Harley-Davidson ended family ownership with a public stock offering and then in 1969 merged with American Machine and Foundry Company AMF In 1981 13 members of the Harley-Davidson management team purchased the company from AMF through a leveraged buy-out In the early 1980s Japanese competitors heavyweight motorcycles created a real threat for the Harley-Davidson organization The heavy Japanese imports to the US were stopped by President Reagan increase of imports tariff By 1986 Harley-Davidson regained the top spot in the US heavyweight motorcycle market Today Harley-Davidson operates in domestic and international markets The US competitors current production and sales volumes are much lower than Harley-Davidson and do not hold a significant market share The company major competitors Honda Suzuki Kawasaki and Yamaha are based outside the United States Competitor financial and marketing resources for the international marketplace are substantially greater than those of Harley-Davidson They also have larger worldwide revenue and are more diversified than Harley-Davidson Harley-Davidson products include Heavyweight Street custom touring and sport motorcycles as well as motorcycle parts accessories apparel and general merchandise Harley-Davidson two main business segments are Motorcycles Related Products and Financial services With the purpose to expand its international market the company acquired the Buell Motorcycle Company in 2000 Buell markets and distributes Harley-Davidson products through independent dealerships in Italy The company financial services unit HDFS provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers STRAGETY
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