Harley Davidson Case AnalysisIn 2007, Harley Davidson was the most profitable motorcycle company in the world. They had just reported excellent results and committed to achieving earnings per share growth of 11% to 17% for each of the next three years. Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task given that Harley's domestic market share recently reached just under 50%. The domestic market is where Harley has achieved the most growth over the last 20 years and with the stabilization it was a million dollar question of where Harley was going to get the 11-17%. dollars. Harley Davidson has built a brand that is so much more than just the brand. Spread an eagle on a rumbling motorcycle, but for those who buy a Harley, they are buying a lifestyle, an experience, or a piece of American culture if you will. Because of this differentiating factor, Harley has been able to charge a higher price for its products while still succeeding against its low-priced competitors. Harley built on this lifestyle by creating the Harley Owners' Group (HOG). Harley promoted shows, rallies and rides through HOG in the United States and even other countries. This helped transform its coveted image into a more exclusive club. In the 1990s, Harley Davidson experienced tremendous growth and sought solutions to its single problem of balancing production and growing demand. In 1996, Harley announced the "2003 Plan". “Plan 2003” was a vast project aimed at increasing its production capacity, introducing several new models and increasing its international expansion. By the end of this period of planned expansion, Harley's sales had increased tenfold in just 23 years. However, by 2007, domestic demand began to decline, as several economic factors...... middle of paper...... came together across Europe. The advertising would more than pay for itself by increasing Harley's sales volume. The new motorcycle developed with the European rider in mind could better compete with other major European producers. Third, I would implement an advertising plan in several major cities across the United States focusing on fuel-efficient Harley motorcycles and the pride of owning a Harley. With fuel prices around $4 a gallon, there's really no better time to own a motorcycle, so why not a Harley? I think motorcycle sales will increase as gas prices rise, so it shouldn't be difficult to recoup the ad spend. In conclusion, I believe Harley can achieve its growth goals by reducing component manufacturing costs, improving its product offering in Europe, and through a smart advertising plan in North America and Europe..