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Essay / Motorcycle Market: The Case of Harley Davidson
Key Information Presented in the CaseHarley Davidson is known as one of the leading manufacturers and sellers of motorcycles in the United States. The company had good business and a large market share in the early 1960s, when it controlled a total of about 70% of the motorcycle market, before the invasion or intrusion of a small Japanese company that manufactured lighter motorcycles, known as Honda. The case study reveals that Harley Davidson took on the invasion of the Japanese firm and instead of tackling the competition, it waited a long time, which caused the company to lose control of the market motorcycles in the United States. Inaction by Harley Davidson management led to the bankruptcy of the company which was sold to AMF, an American company, although it was later purchased by Beals. After the takeover by Beals, Harley Davidson improved its productivity after receiving production lessons from the Japanese company. In addition, the company changed part of its marketing approach, which contributed to the improvement of the company's overall performance. Most people freely used the company's bicycle logo, which led to a bad image of the company. As part of the makeover and restoration of its image, the company has decided to license all of its logos and any other elements related to the company. This helped the company get new customers outside of its already existing customer base. Demand for the company's products also increased over time after licensing the company's products and logo. This meant that the company could not meet demand, which became a problem for success. The company also had the potential for expansion in terms of export...... middle of paper ...... of a given business is of great importance and should be maintained as it speaks volumes about the company to customers. To solve the image problem, Harley Davidson could opt for public image strengthening campaigns. This will involve providing the right information to the public as well as the right quality of products. This can be done through word of mouth, in which customers will play an important role, or through other means. The benefit is that more people will know about the company and have the appropriate information, eliminating their perception of it. The other alternative that the company can use and enforce is company logo licensing. This makes people view the company as serious and its long-term use as something that should be respected. This helped build the company's image and therefore improve long-term performance...