Harley Davidson Analysis
HARLEY DAVIDSON MOTOR COMPANY As one Harley puts it, It's one thing to have
people buy your products. It's another for them to tattoo your name on their
bodies. Harley-Davidson is the only major US maker of motorcycles and the
nation's #1 seller of heavyweight motorcycles. Harley-Davidson offers 24 models
of touring and custom cycles. Harley has held the largest share of the U.S.
heavyweight motorcycle market since 1986. Besides its bikes, Harley-Davidson
sells a licensed line of clothing and accessories with the company name. Also,
gaining attention are the Harley-Davidson Cafes, located in various cities
including New York City and Las Vegas. These successful restaurants provide
Harley enthusiasts with great food, souvenir merchandise and a chance to see
rare biker memorabilia. This makes Harley one of the most recognizable symbols
in America today. Many of Harley-Davidson owners/riders are members of the
Harley Owners Group better known as H.O.G., with more than 500,000 members
nationwide. Demand for Harley-Davidson motorcycles continues to rise. Other
motorcycle manufacturers have tried to compete with Harley-Davidson in the
heavyweight V-Twin cruiser segment; none have been able to match Harley-Davidson
in terms of customer loyalty and sales. There is a waiting list to get new
bikes. The dedication to its existing customers has created a loyalty that is
enviable by many other companies.
COMPANY HISTORY: William S. Harley and
William, Walter and Arthur Davidson began the Harley Davidson Motorcycle Company
in a shed in the Davidson backyard in Milwaukee, Wisconsin in 1903. That year,
they built three motorcycles. In 1909 the company introduced the V-Twin engine,
which is still in use to this day, a more powerful engine and topping a
previously unheard of speed of 60 miles an hour. As a demand for the bikes grew,
other companies were formed. By 1911, there were 150 companies in the US that
built motorcycles. Police departments and the military made heavy use of the
bikes. During World War I, HD Bikes were called into service and by the end of
the war; the US Military used over 20,000 of them. Major achievements in design
ensued, and a Harley Davidson Bike was the first motor vehicle to win a race
with an average speed of over 100 miles per hour. In 1926 the teardrop style gas
tank that is still used today was introduced. The Great Depression devastated
the motorcycle industry. Only Harley Davidson and Indian motorcycles survived
the 1930’s largely due to use by police departments. Again, World War called
over 90,000 motorcycles into action in the 1940’s. After the war, the company
expanded. The original founders died and new management took over. Indian
Motorcycles closed in 1953 and left Harley Davidson the sole US manufacturer of
American made motorcycles. The 50’s also saw the rise of the American
“motorcycle culture”, with black leather jackets making a statement and
signifying a lifestyle. In 1965 the company made its first public offering on
the stock market, and in 1969 merged with AMF. At the time the company was
producing 14000 cycles per year. The merger bolstered Harley’s growth with
financial strength of AMF.
