Case Questions According To Harley Davidson's Africa Country ✓ Solved

Case Questions according To Harley Davidson's Africa Country

According to Harley-Davidson’s Africa country manager, Celine Gruizinga, “No one who comes here is going to make a quick buck. It’s no small feat. It’s a type of commitment that takes decades.” Let’s say that you’re the CEO of a publicly owned U.S. company that manufactures fashion footwear. You’re interested in getting involved in the sub-Saharan Africa market, which will eventually total 1.1 billion middle-class consumers—50 years from now. You need to decide which sort of globalization strategy would work best for you: exporting, licensing, joint venture (or some other form of strategic alliance), or direct investment. Generally speaking—and given Gruizinga’s warning—what are the pros and cons of each option? As it happens, Celine Gruizinga is also Harley’s first-ever female country manager. She’s also an avid Harley rider. The company is targeting women buyers in sub-Saharan Africa, who already account for 26 percent of Harley riders in a region where the company reports “a significant increase in the number of both white and black women riders.” Interestingly, Harley is also targeting women in the United States. What kinds of marketing appeals might Harley make to female consumers in both markets? What kinds of appeals will probably have to be distinctive for each market? Why do you think more women are interested in buying Harleys? Nigeria has the largest economy in Africa. It’s oil-rich, and the economy is growing rapidly, driven by agriculture, telecommunications, and services. The banking sector is strong. Unfortunately, Nigeria is also a serious security risk. How should Harley-Davidson proceed with any plans to do business in Nigeria? (“Cautiously” is a good answer, but try to be more thorough in analyzing the situation.)

Paper For Above Instructions

The expansion of a company into the sub-Saharan African market presents complex challenges and opportunities, especially for a brand like Harley-Davidson that is considerably established in the U.S. and seeking to diversify its consumer base. In this context, I will analyze various globalization strategies and their implications for a U.S. footwear company, as well as potential marketing strategies targeting female consumers in both Africa and the United States. Additionally, considerations for entering the Nigerian market will be discussed.

Globalization Strategies: Pros and Cons

When contemplating market entry strategies, companies often consider the following options: exporting, licensing, joint ventures, or direct investment. Here is a breakdown of the pros and cons of each option:

1. Exporting

Exporting allows a company to sell its products in foreign markets without establishing a physical presence. This approach generally requires lower initial investment.

Pros:

  • Low financial risk and commitment.
  • Easier to exit the market if necessary.

Cons:

  • Logistical challenges.
  • Potentially higher tariffs and taxes on imported goods.

2. Licensing

Licensing involves a company permitting a foreign firm to produce and sell its products.

Pros:

  • Lower investment risk.
  • Quick entry into the market.

Cons:

  • Limited control over brand image.
  • Potential for quality issues.

3. Joint Venture

This strategy involves partnering with a local company to combine resources and expertise.

Pros:

  • Access to local market knowledge.
  • Shared financial risk.

Cons:

  • Complex management structures.
  • Potential conflicts regarding decision-making.

4. Direct Investment

Direct investment implies establishing a manufacturing or sales facility in the foreign market.

Pros:

  • Full control over operations and branding.
  • All profit remains with the company.

Cons:

  • High initial investment and risk.
  • Longer time frame to see profit.

Targeting Female Consumers

Harley-Davidson's initiative to target female consumers in sub-Saharan Africa and the U.S. presents unique marketing opportunities. The brand can leverage themes of empowerment, adventure, and community. Here are some potential marketing appeals for each market:

Appeals in Sub-Saharan Africa

In sub-Saharan Africa, marketing strategies can focus on themes of empowerment, independence, and breaking stereotypes. Highlighting successful female riders and the lifestyle associated with motorcycle riding can appeal to new demographics.

Appeals in the United States

In the U.S., the marketing could embrace the growing trend of female empowerment and adventure seeking, while also fostering community among female riders. Utilizing social media platforms to share stories from women motorcyclists could foster a sense of belonging and community.

Distinctive Appeals for Each Market

While empowerment appeals resonate in both markets, the cultural context requires customized strategies. In Africa, marketing may need to address socio-economic factors and demonstrate how independence through motorcycling can challenge traditional norms. In contrast, the U.S. can focus more on freedom, lifestyle and adventure.

Interest in Harley-Davidson Among Women

More women are showing interest in purchasing Harleys due to changing dynamics in societal roles, empowerment narratives, and community engagement offered by motorcycle culture. The idea of female riders challenging traditional norms resonates deeply in both markets, enhancing Harley's brand image as an inclusive, adventurous option for women.

Considerations for Entering Nigeria's Market

Nigeria's fast-growing economy coupled with its security risks calls for a cautious approach. First, extensive market research is vital to understand the local culture and consumer behavior. Establishing safety protocols for employees and ensuring robust security measures can mitigate risks. Partnering with local businesses can also facilitate smoother entry into the market while navigating the local landscape effectively.

Conclusion

As companies look to expand into sub-Saharan Africa, careful consideration of globalization strategies tailored to the target market, along with effective marketing that addresses the nuances of gender dynamics, can pave the way for successful entry. In the case of Nigeria, strategic partnerships and comprehensive safety measures will be crucial for mitigative success in a complex environment.

References

  • Fioriti, J. (2013). Meet the Elephant’s Bikers, Côte d’Ivoire’s Version of Hells Angels. Voices of Africa.
  • Volastro, A. (2013). Harleys, Hogs and Hells Angels Ride on Africa. CNBC.
  • King, E. (2017). Motorcycling: Harley-Davidson Rides into Africa. Financial Mail.
  • Shangase, Z. (2013). Mike Rides in for Harley. The New Age.
  • Philip, S. (2013). South Africa’s Black Middle Class on the Rise. Media Club South Africa.
  • UHY International. (2012). The World’s Fastest-Growing Middle Class.
  • World Bank. (2021). Nigeria Economic Update.
  • OECD. (2020). Africa's Economic Outlook 2020.
  • Harley-Davidson, Inc. (2022). Annual Report.
  • Statista. (2021). Motorbike Market Analysis in Sub-Saharan Africa.

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