Market Entry Strategies Case Study

Harley-Davidson’s Foray in China

OR

Abstract:

In the first half of 2006, Harley-Davidson (H-D), an icon of the motorcycle industry, decided to set up its first outlet in China, one of the largest manufacturers in the world. With this decision, H-D aimed to establish its presence in the country, amidst various tariff and non-tariff barriers. The advent of the dealership was also set to discourage illicit smuggling of bikes and protect the brand identity of the products from piracy.

The case, while providing an overview of the Chinese motorcycle industry and its various roadblocks, discusses the entry strategies of H-D.

Pedagogical Objectives:

• To understand the competitive forces in the Chinese motorcycle industry
• To discuss the various tariff, non-tariff and other government restrictions that reduced foreign competition in China
• To discuss the entry strategy of Harley-Davidson in the Chinese market
• To critically analyse the effects of piracy and counterfeit goods on Harley-Davidson’s brand image and its strategy to counter it
• To discuss the impact of WTO on the Chinese motorcycle industry.

Keywords : Harley-Davidson; China; Motorcycle; Harley Owner's Group (HOG); China's motorcycle industry; Market Entry Strategies Case Study; Tariff and non-tariff barriers; Piracy; World Trade Organisation (WTO); Entry Strategy; Zongshen Motorcycle Group; Beijing Feng Huo Lun; Lifestyle statement; Vehicular restrictions; David Foley

Contents : 
Introduction
Harley-Davidson – The Motorcycle Icon
China’s Motorcycle Industry
Roadblocks In China
Harley-Davidson’s Entry Strategy
H-D’s Net Income Chart
China’s Motorisation Growth