The Huge Picture Harley Davidson

Harley Davidson Inc.

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HUGE PICTURE

Capitalism in its truest and furthest extent is the idea of globalization. This idea requires companies to reevaluate what and who they think their competitors are. Many industries and sectors of business are realizing the fact that their competition is not only the guy down the street or the guy on the other coast, but may very well be the guy across the ocean. Free trade enables corporations from all countries to compete and participate in the market. One company that has welcomed, mastered, and will succeed in the idea of globalization is Harley Davidson Inc. This company understands the big picture and how they must adapt to the global market to not only stay competitive, but to stay profitable. Harley Davidson has successfully maintained dominance in the American market and the world market. Their strategies within the both the American and foreign markets and their commitment to keeping costs low will help Harley Davidson Inc. continue to be a strong and viable company well into the future.

Harley Davidson's strategies have helped it to be a strong company within the American market. Harley has enjoyed 16 consecutive years of record revenue and earnings.[i] Even through the recession in the beginning of the 90's and the downturn of 2001, Harley has still maintained its ability to sell its products. This is due in part to their emphasis on producing a quality product, being a good employer, and the commitment to giving back to the community. These strategies have kept Harley at the pinnacle of success.

Harley has a firm goal on making motorcycles that are reliable, cost efficient, and sturdy. This commitment comes from their "Enterprise Quality Plan" that has been their policy in all their factories, dealerships, and repair shops.[ii] This plan ensures that all products out of the factory are of the highest quality and have been inspected on their craftsmanship. Dealerships are supposed to make a commitment to making sure that the customer is satisfied with their purchase and that all safety and insurance precautions have been taken. Repair shops are suppose to make sure that they fix any problems that may rise with the product in a timely manner, using high grade parts and great service. However, just having a great product and servicing it well does not guarantee success in the American market.

Harley is also a great place to work at. Harley has been named 2001 "Company of the Year", one of the "Most Admired Companies", and was just been recently awarded the "Top 100 Companies to Work for" for the fourth time in five years.[iii] This is because Harley's leadership is not made up of top level managers, but incorporates the whole company in its decision process. Harley's Leadership and Strategy Council that determines policy for the company not only welcomes the CEO, CFO, and the Presidents from each of the different divisions of Harley Davidson Inc, but also invites elected representatives from career level and other senior management members to the council.[iv] This allows for new management and the experienced to make decisions based upon all walks of life and areas of the business. This incorporation of employees into the decision making has allowed Harley to work well with the Unions. Their relationships with Paper Allied-Industrial Chemical & Energy Workers International Union (PACE) and the International Association of Machines & Aerospace Workers (IAM) have helped Harley boast 5 -7 year contracts with its workers.[v] However, once again, just because America can see that you are a good company to your employees will not totally convince people to invest and trust in your company.

Harley has not only tried to give support to its employees and customers, but Harley has given to the community. Harley has given numerous donations to worthy causes. Harley gave $1 million to New York and Washington DC and sent 35 new bikes to the NYPD after the events of Sept. 11th.[vi] However, Harley has not just started giving because of Sept 11th. Harley has always tried to make a difference in America. Harley gave $100,000 to the Vietnam and WWII memorial funds.[vii] Since 1980, Harley has helped raise $38 million for Muscular Dystrophy Association.[viii] Also, Harley gave $1 million to the Harry Bradley Technology and Trade School in Milwaukee to help educate America's young people.[ix] All these examples prove that Harley is committed to things higher than just turning a profit, but they are interested in America and its welfare.

These strategies have helped maintain the good public relations for Harley. By providing a good quality product, taking care of their employees, and reaching out to the community, Harley has invested much in making sure the American market is trustworthy of any product that bears the name "Harley Davidson".

However, in the foreign market how does a company separate itself from the competition but still maintain a trust in the company? Once again, Harley has mastered this globalization into other markets. Their strategies of providing innovative products and many advertising mediums have helped Harley Davidson be the #1 selling heavyweight motorcycle in many countries.

Just recently, Harley made the headlines for a new product that is sweeping the motorcycle world. In November 2001, Harley unveiled a new line of motorcycle called the V-Rod that is powered by a liquid cooled "Revolution" engine that puts out 115 horses and 74 foot-pounds of torque at 70000 RPMs.[x] Already the V-Rod has won many awards by the international community. It has won the Motorcycle Design Association Open Class Trophy, Popular Mechanics Magazine's Design & Engineering Award, Popular Science Magazine's "Best of What's New Award", and "Bike of the Year" by both Motor Cycle News and UK's Two Wheels Only magazine.[xi] This innovation is what keeps Harley on top in the foreign markets.

In addition, Harley has an exhaustive supply of advertising mediums it uses to spread the word and influence of the Harley Davidson products. "Harley Davidson is one of those brands that become some kind of strange religion for motorcycle lovers." says one Brazilian commentator.[xii] This religion is embodied in H.O.G., the leather wearing Harley Owners Group. H.O.G. is a paid membership club for Harley enthusiasts. It numbers over 600,000 members and