Place Yourself In The Role Of A Market Manager At Harley Dav

Place Yourself In The Role Of A Market Manager At Harley Davidson Y

Place yourself in the role of a market manager at Harley Davidson. Your company, Harley-Davidson, has chosen to compete in various country markets in Europe and Asia using an export strategy. Read the sections of its latest annual reports from 2009 and 2010 at related to its international operations. Why does it seem that the company has avoided developing production facilities outside the United States? Harley-Davidson is a company of many strengths, from their dedicated and loyal customers, to the quality American engineered engines, and their strong culture with roots that go deep.

The popularity of the Harley-Davidson motorcycle might have begun here in America but it definitely did not stop there. From Canada to the UK and now Europe and Asia…no one has been able to replicate the powerful cruiser motorcycle design so many Harley-Davidson riders respect. “We see it in the motorcycles they ride, the individuality they express and their dedication to the ultimate riding experience. When you have such an expansive and devoted global community of riders, it’s more than a business advantage; it’s an obligation we take very seriously to exceed expectations” (Anonymous, 2009). Harley-Davidson’s senior management wisely revised their business strategy to encompass its’ opportunity for global expansion and growth.

By reexamining their strategy to meet the transnational demands of global consumers, Harley-Davidson has increased its global footprint and overall sales. Developing a global strategy involves the company employing the same basic competitive approach in all countries where it operates, sells the same product, in our case motorcycles, everywhere, striving to build and maintain their global brand, and coordinating its actions worldwide with strong communication and control (Thompson, 2012).

Paper For Above instruction

Harley-Davidson’s decision not to establish manufacturing facilities outside the United States stems primarily from strategic, logistical, and economic considerations rooted in their branding philosophy and operational efficiency. As a quintessential American brand renowned for its rich history and cultural symbolism, Harley-Davidson leverages its “made in America” image as a vital component of its global appeal. This branding strategy capitalizes on consumers’ perceptions of American craftsmanship, heritage, and the rugged, rebellious ethos that the Harley name embodies (Ferrari & Basile, 2015). The authenticity associated with American-made Harley motorcycles is instrumental in differentiating the brand in international markets, especially where American culture is highly valued or associated with freedom and independence (Kim & Lee, 2019).

Additionally, the company’s existing international expansion approach emphasizes the export of motorcycles rather than establishing foreign production units. According to Harley-Davidson’s 2010 annual report, the company’s leadership argues that regional differences in riding seasons, customs regulations, and market-specific preferences are better managed through imports rather than localized manufacturing (Harley-Davidson Inc., 2010). This export-centric strategy allows Harley to maintain tight control over its quality standards and brand consistency, which could be jeopardized by offshore manufacturing complexities.

Furthermore, logistical challenges and cost considerations influence Harley-Davidson’s avoidance of overseas production. While manufacturing domestically may entail higher labor and operational costs, it ensures superior quality control and maintains the premium brand image. The costs associated with establishing and operating foreign factories—such as establishing supply chains, compliance with multiple regulatory regimes, and potential political or economic instability—are significant barriers (Weinstein, 2018). The company also contends with seasonal variations in international markets; for instance, riding seasons differ across regions, which complicates inventory management and reduces the economic viability of shift-based foreign production facilities (Harley-Davidson Inc., 2011).

Regulatory environments further influence this stance. Moving manufacturing abroad might involve navigating complex compliance requirements, trade tariffs, and import/export restrictions that could offset potential cost savings. As noted in Harley-Davidson’s reports, the company prefers to manage its international sales through well-established distribution channels and importation, thus avoiding the risks and uncertainties associated with foreign manufacturing operations (Harley-Davidson Inc., 2011).

In summary, Harley-Davidson’s strategy to avoid developing production facilities outside the United States is rooted in its brand image, quality control priorities, logistical considerations, economic calculations, and regulatory environments. The company’s identity as an American icon and its export-based approach help sustain its global presence while safeguarding its heritage, ensuring product consistency, and controlling operational costs (Kim & Lee, 2019). This strategy has proven effective by allowing Harley-Davidson to adapt to regional consumer preferences without compromising its core brand ideals, thus supporting its long-term growth ambitions in international markets.

Going forward, Harley-Davidson might revisit this stance if technological, economic, or geopolitical conditions change significantly. Advances in manufacturing technology, such as automation and modular production, could lower the costs of overseas factories, making local production more viable. Additionally, as certifications and regulations evolve, local manufacturing might become more advantageous in terms of quicker market entry and customization. Nonetheless, the core element of Harley-Davidson’s branding—its American heritage—remains a decisive factor in their strategic decisions regarding manufacturing and global expansion.

References

• Ferrari, S., & Basile, A. (2015). Global branding and cultural identity: The case of Harley-Davidson. Journal of Brand Management, 22(6), 491-506.
• Harley-Davidson Inc. (2010). Annual Report. Milwaukee: Harley-Davidson Inc.
• Harley-Davidson Inc. (2011). Form 10-K Annual Report. Milwaukee: Harley-Davidson Inc.
• Kim, H., & Lee, S. (2019). Heritage branding and consumer perceptions: An analysis of Harley-Davidson’s global strategy. Journal of International Marketing, 27(4), 34-52.
• Thompson, A. A. (2012). Strategic Management: Concepts and Cases. Boston: McGraw-Hill Education.
• Weinstein, P. (2018). Manufacturing strategies in global markets. International Journal of Logistics Management, 29(1), 45-66.