Harley-Davison Case

Appendix I
Harley-Davidson, Inc
 
 I- Current Situation:
 
    A. Current Performance

    • In 2005, Harley-Davidson’s sales grew to $5.34 billion, a 6.5% increase over 2004. 
    • The net income grew 7.8% to $959.6 million. 
    • Diluted full-year earnings per share rose 13.7% to $3.41 compared to 2004.
    • Harley-Davidson is shipping 329,017 new motorcycles globally. 
    • The worldwide retail sales of Harley-Davidson motorcycles grew 6.2% to 317,169 units and international retail sales climbed 19.9% over the prior year.
    • The company has 49.6% of the North America market share compare to its competitors: Honda 16.6%, Suzuki 12.4%, Yamaha 8.9%, Kawasaki 6.5%, and Others 6.0%. The significant amount of market share Harley-Davidson owns in the North American market helped the company generates the highest net revenues of $4,304 million in 2005. 
        
   B. Strategic Posture
 
Mission Statement:
    • "We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments."

Objectives:
    • Continue growth of 7 to 9% annually
    • Expand customer base
    • Rebuild investor's confidence in Harley Davidson
                      
 Strategies:
    • Continue its customer focus strategy.   Harley-Davidson offers a wide range of products and services, clothing, accessories, and a range of affordable motorcycles to higher-end luxury models targeting customers in all age groups.
    • Continue the company's ongoing manufacturing strategy designed to increase capacity, improve product quality, reduce costs and increase flexibility to respond to changes in the marketplace.
    • Continue to establish and reinforce long-term relationships with suppliers.
    • Continue research and development to lead the custom and touring motorcycling market and to develop products for the performance segment.... [continues]

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