Corporate Strategy Case Study

Value Creation at Harley-Davidson

OR

Abstract:
On 31 August 2003 Harley-Davidson (H-D), the only major American player in the world motorcycle market, celebrated its 100th anniversary. In 2002, H-D reported its 17th consecutive year of record revenue and net income. In 2001 Forbes magazine named H-D the 'company of the year' for its record sales growth, earnings, and strong overall financial performance. The case discusses the way H-D has been creating value for its shareholders: (1) by positioning itself as a lifestyle product (with the capacity to satisfy deep-seated psychological needs); (2) by lowering buyers' price sensitivity (and in the process paving the way for premium pricing); and (3) through risk management and synchronised operating processes.

Pedagogical Objectives:

• To understand and analyse how H-D creates value for its shareholders
• To discuss the marketing strategies of H-D

Keywords : Harley-Davidson, Just-in-time, Richard Teerlink, Clyde Fessler, Value creation, Brands & Branding Case Study, Brand positioning, Buell, Retail, Harley owners group, Co-branding, Brand loyalty, Icon, Pricing, Risk management, Waste cost