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Harley - Davidson Inc Motorcycle Industry The purpose of this report is to develop a strategic corporate objectivefor HarleyDavidson Inc a publicly traded employee owned manufacturer ofheavyweight motorcycles recreational and commercial vehicles military defenseitems and small engines distributing its products to domestic andinternational markets targeting all men and women of all ages The industry under study is the motorcycle industry consisting of fivemajor manufacturers one American Harley Davidson and four Japanese HondaYamaha Kawasaki Suzuki and some European companies mainly BMW of Germany andsome other Italian companies Most companies market their motorcycles andaccessories on a worldwide basis handling international trade through foreigndistributors and domestic sales through franchised outlets Industry sales ofmotorcycles were shrinking in the early l990s because of the recession and thecompetition from computers and electronic products decreasing consumers Sales of accessories and parts make up 36 of total retail sales and is aviable area for producers to explore because people want something todifferentiate their bikes Previously motorcycles were viewed as a cheap meansof transportation By 1992 they came to be viewed as a recreational or aluxury item This new perception of motorcycles led to the introduction of moreexpensive models with higher prices This led to the introduction of consumerfinancing one of the fastest growing service areas in the motorcycle industryHarleys strategic objective is to continue to provide safe hightechnology heavyweight bikes and keep customer satisfaction at high levels Thisquality vision more than doubled Harleys market share and increased its brandThey can be divided into 2 categories men and womenMenA Men under 30 This group accounts for 44 of all sales Therefore agreat opportunity exists here because of the groups size This groups membersbuy motorcycles for their transportation and recreation needs Men in this groupbuy more of mopeds scooters and entry level lightweight road bikesB Men between 30 and 50 This age group makes up 45k of buyers anotherlarge area providing opportunities for firms The motorcycles most frequentlypurchased
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