Harley Davidson

We recommend that Harley-Davidson implement a horizontal growth strategy. It should expand its products deeper into the international market by opening new dealerships in China by the end of the second quarter of 2003. The firm should also concentrate on expanding its production capacity to meet growing demand in both the foreign and domestic motorcycle markets.

The company should increase the production capacity of each of its seven domestic manufacturing facilities by ten percent. This will help to eliminate the inventory lag that has been historically associated with Harley-Davidson. These improvements should be the result of both increasing the efficiency of these plants wherever possible and also expanding the facilities wherever it is necessary to do so. This process should be initiated immediately and finished by the 2003 year end. We also propose that Harley-Davidson build a new manufacturing plant in southeastern China. This plant will improve the geographic positioning of the company and reduce selling costs in China and the regions that surround it.

We suggest that Harley-Davidson introduce a new motorcycle through the Buell Company. This motorcycle should be catered to the needs of its European and Japanese customers. The firm should also take advantage of the rising internet trends and advertise its products online instead of only through conventional channels. The corporation should buy advertising space on the Google and Yahoo! websites, respectively.

I. Company History

Harley-Davidson has a clearly defined mission statement that is as follows: “We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments” (Wheelen and Hunger 1). The corporation has been legendary for the great loyalty