harley

Harley-Davidson

The Basic Harley-Davidson Story

Harley-Davidson has a storied past beginning in the days that U.S. roads were so bad that a motorcyle provided one of the best modes of transportation. A depression, the Interstate Highway Act, wars and an unsuccessful merger with AMF are all part of this story. As stated on its web page, Harley-Davidson began in a shed, went to war, became the symbol of American individualism and ended up "king of the road", all in 95 years. Buying a Harley is not acquiring a product but buying an experience and even a life style say its enthusiasts.

During the 1970s Japanese competition threatened the very existance of Harley-Davidson that was at that time a subsidiary of American Machine and Foundry Company (AMF). In 1981 thirteen members of Harley-Davidson management led by Vaughn Beals purchased the company in a leveraged buy-out. In the subsequent five years the company was streamlined and it refocused its efforts to improve its market share through a major improvment in product quality. Many of the improved manufacturing techniques were learned from the Japanese. Regardless of the source, Harley-Davidson once again has a strong but not dominant position in the heavy-duty segment of the U.S. motorcycle market.

Most people know this story of Harley's journey to the edge of corporate death and back to the pinnacle of American business iconography. Less well known is the trip that Harley has taken in the past few years as unparalleled success has created new problems. In 1996 Harley shipped 118,771 motorcycles, up from 105,000 in 1995. But even with increased output, supply has lagged demand, leaving disappointed customers who couln't get their hands on a Harley. The imbalance between supply and demand has created a flourishing black market, with bikes selling for more than the suggested retail price and customers high on waiting lists selling their places to impatient buyers lower on the list. These same supply constraints have prevented Harley from going after new growth opportunities in international markets.

The solution to this problem is an ambitious plan to more than double production by the company's 100th anniversary. By the year 2003 Harley wants to be able to make at least 200,000 to 300,000 motorcycles a year. They want to do that without losing any of the quality or family feeling that they fought so hard to gain during their dramatic come-back as a company.

Following the management buy-out led by Vaughn Beals, Harley struggled for survival for a number of years. U.S. government protection in the form of import duties of foreign made products helped them survive. When a company is struggling to make payroll it doesn't invest a lot of money in information systems. Having established itself with quality products that made the company financially sound, it then turned its attention to having information technology where it could contribute to the success of the business.

Harlely-Davidson

The Motorcycle Industry

Information Systems at Harley-Davidson

Key Harley-Davidson People

Tips on Doing an Analysis Paper on Harley-Davidson

Back