Harley Davidson case study PDF

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How to revive a 116-year-old company in search of new customers Harley-Davidson is facing declining revenue as its core group of riders ages. In response, the company has introduced new models of bikes, including the LiveWire, a AUD$44,000 electric motorcycle announced in 2014, and introduced to the global market in early 2019. The LiveWire was put at the centre of the company’s attempts to appeal to a younger, more diverse crowd of riders. The LiveWire has not reached Australian showrooms yet, and production has recently stopped after the discovery of a problem related to the vehicle’s charging equipment. Concerns have also been raised about the durability and reliability of electric motorcycles, and dealers have said charging so much for the LiveWire leaves it vulnerable to losing sales to lower-priced competitors in the nascent electric-motorcycle market. Despite the controversies surrounding LiveWire, Harley Davidson continues to make announcements that indicate their willingness to move past the traditional market boundaries of the 116-year-old company in search of new riders. The brand, which has been present in Australia since 1917, considers Australians to be among its strongest followers. Nigel Keough, Managing Director, Harley-Davidson Australia & New Zealand said Harley Davidson “has been a part of the cultural landscape of Australia”: “Australians have an in-built sense of freedom and adventure. Couple this with the ideal riding conditions our country offers, and we have fostered a loyal and close-knit community of committed motorcycle enthusiasts. Our fans range from 16 to 88 years old, from kids, racers, school teachers, small business owners, movie stars to CEO’s, and celebrating our 100 years would not be possible without them.” Mr Keough said. The Motor Company officially recently revealed two widely rumored and expected new motorcycles that operate far outside the usual cruiser segment Harley Davidson is most associated with. They also come at a time of slipping sales and stock performance for Harley, although there was finally some good news in the most recent quarter as international sales gave the company a boost. The company wants to grow its international sales of all bikes to 50 per cent of annual revenue by the end of 2027. In 2018, 42 per cent of Harley bikes went to dealers outside of the US. The first and most controversial announcement (LiveWire excepted) is the longrumored Pan America, a heavyweight “dual-sport” or “adventure” motorcycle with offroad capability. Adventure (or “ADV”) dual-sport motorcycles can be ridden both on and off pavement, but they aren’t “dirt bikes” in the traditional sense. Feature-laden, comfortable, tough and typically large, they’re the Range Rovers of the motorcycle world. Helped in part by their high level of utility and all-terrain capabilities, ADV or “adventure motorcycles” are some of the most popular machines being sold today, even if, like many SUVs, they never turn a tire in actual dirt. With the Pan America, Harley will be taking on entrenched ADV bikemakers BMW, Honda, KTM, and relative ADV newcomer Ducati, among others, in the ever more crowded market. ADV riders on epic world-circling journeys via roads less traveled tend to heavily load the bikes with everything needed to survive on their own, so power and carrying capacity are keys to success. The prototype for the new Harley Davidson seems to deliver on these criteria. Price and a more precise release date have not been announced, but analysist expect Pan America to likely come in close to the AUD$28,000 mark to compete with similarly capable BMW and KTM machines.

The next machine announced is perhaps the most “modern” motorcycle the company has designed thus far. The Bronx is a high-tech sporting machine unlike anything else in the Harley Davidson line. Styled in the “streetfighter” vein of stripped-down, highperformance machines typically seen from European and Asian makers, the Bronx will focus on speed, agility and rider tech in ways no Harley really has before. Harley says the Bronx will go on sale later in 2020 and so far, no pricing has been announced. There will be no shortage of competition. Market analysists diverge on which model will be launched by Harley Davidson in Australia. No matter the strategy the company chooses to adopt, it has to account for the fact that despite Harley-Davidson still being the biggest-selling motorcycle brand in Australia, it’s that sales fell by 21 per cent in 2018. Adapted from: Roberson, Bill (2019), “Harley-Davidson’s Diversification Efforts Continue with Two More Unconventional Models”. Forbes. November 8, 2019. Available at: https://www.forbes.com/sites/billroberson/2019/11/08/harley-davidsons-diversificationcontinues-with-two-more-unconventional-models/#594b33c562d6 Tita, Bob, and Hufford, Austen (2019), “Harley hits the brakes on electric bikes”. The Australian; Canberra, A.C.T. October, 16, 2019 Debord, Matthew (2019), “A game-changing electric vehicle is set to take off in 2020 — and it's not from Tesla”. Business Insider Australia, December 31, 2019. Available at: https://www.businessinsider.com.au/harley-davidson-livewire-electric-motorcycledue-in-2020-tesla-challenger-2019-12?r=US&IR=T Company Man (2017), “The Problem Facing Harley Davidson”, June 14, 2017. Available at: https://www.youtube.com/watch?v=1UF-w1yf894 MotorCycle (2017), “100 Years Harley-Davidson in Australia Celebrations - Events”, May 7, 2017. Available at: https://amcn.com.au/editorial/15592/...