The international business environment that Harley-Davidson faces includes several challenges and obstacles. These challenges include trying to increase sales in nations that already offer well-known brands of motorcycles at cheaper costs. Besides having to compete with local brands, in places such as Europe each specific country may have different preferences on styling, size, and the type of performance. Other obstacles include high tariffs in some emerging markets, potential for piracy and counterfeiting of designs, environmental and regulatory sanctions due to high greenhouse gas emissions, and the need lower carbon footprint standards. Should Harley attempt to increase its international sales base they would run into many of the risks which could limit their international exposure. Question 2
Harley-Davidson can benefit from expanding abroad because it will allow them to insulate their business from domestic economic downturns while also diversifying their product lines to adapt with the demands of the consumers. The advantages of expanding international sales include maintaining a more balanced business model. By expanding internationally Harley-Davidson can broaden its global appeal and have its business less concentrated on one particular region of the world in particular, the United States. A global expansion can also push Harley-Davidson into new emerging markets such as China, India, and Brazil which have very large populations and many potential customers.
The advantages acquired abroad can also help Harley at home as well. When Harley enters a specific country they may be able to learn from the local business practices and potentially apply some of this newfound knowledge at home to the betterment of the company. Harley may also find that motorcycle designs demanded within other countries may crossover well within the United States as well. Question 3
Harley-Davidson can effectively compete...