Business

Essay by PaperNerd ContributorUniversity, Master's April 2001

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Global Motorcycle Industry In 1998, Harley-Davidson, Inc. achieved its thirteen consecutive year of record revenue and earnings with a 74 percent increase in the value of the firm. Overall, it sold 157,152 motorcycles, achieved net sales of over $2 billion, and gross profits of $104.5 million. In the same year the company also completed a new facility near Milwaukee, which manufactures engines and transmissions and finished a facility in Kansas City, which produces all six models of Sportsters, Harley's 833cc and 1200cc bikes. Chairman and CEO Jeffrey L. Bleusten believes that the success of Harley could be attributed to four major factors: established brand loyalty and respect, strong stakeholder relationships, committed management team and empowered employees, and the "Harley-Davidson's mystique." The company's focused efforts are on the motorcycle industry, including accessories and financing which is a competitive advantage along with their established strong brand name and customer loyalty. It strengthened its presence in the industry by obtaining full ownership in Buell Motorcycle Company and establishing Eaglemark Financial Services, Inc.,

to provide financial services to dealers and customers. The motorcycle industry shows signs of solid growth with high demand in their respective market. Using the Boston Consulting Group Portfolio Model, the Harley-Davidson Company would be considered a Star with high market share and high market growth rate not only in North America, but also around the world. Harley cannot produce enough motorcycles to meet demand and their prices tend to be higher than competitive models. In addition to established competitors, there are a number of new competitors entering the market. Although Harley's product quality is excellent, they are technologically behind their competitors and their shortages may lead consumers to purchase competitive bikes. Also, most of the major competitors have full lines of smaller motorcycles, a market in which Harley does not...