Organization Management Assignment : Harley Davidson
Added on 2021-04-21
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Running head: MANAGING THE ORGANIZATIONManaging the organizationName of the studentName of the universityAuthor note
1MANAGING THE ORGANIZATIONQuestion: 1Harley Davidson operates in the global two wheeler industry. This industry is thepart of the entre automobile industry including the four wheelers market, but it is morecompetitive in nature. This is due to the reason that two markets are having morenumber of companies compared to the four wheeler market. Moreover, the customersegments in the two wheel industry are also more diverse compared to the four wheelerindustry. The starting price point in the two wheeler industry is much lower and thus thecustomer base is also more than the four wheeler industry. In the global two wheelermarket, market segmentation can be done in terms of different aspects. One of themajor aspects is the style of the motorbikes (Singh, Rastogi and Sharma 2013). Anotheraspect is the price point of the motorcycle. The last aspect is the utility of themotorcycle. Harley Davidson is one of the leading American motorcycle makers operating inthe global two wheeler market. They can be considered as one of the major legacymotorcycle manufacturers due to their rich brand history and classic product lines.However, the legacy and the positive brand value of Harley Davidson are less effectivein the current competitive market scenario. In addition, with the inflow of the hugenumber of motorcycle brands from different countries especially the Japanese brands,market share of Harley Davidson is at stake. Moreover, the global two wheeler market ishighly segmented in nature (Corey and Millage 2014). This is due to the reason that acertain section of the customers rides motorcycle for utility. On the other hand, anothersection of the customers ride motorcycles for leisure and lifestyle purposes. There aresome companies such as Honda and Suzuki who are having both the premium andaffordable models for different customer segments. Some other companies are eitheroperating the premium segment such as Harley Davidson and Indian, while some areoperating only in the affordable segment such as Bajaj and Hero from the Asian region. In along with these, one of the key features for the industry where HarleyDavidson operates is the change in the market trend or the customer preferencepattern. According to the given case study, heavyweight and classic cruiser styledmotorcycles are once preferred by the larger section of the target customers in the
2MANAGING THE ORGANIZATIONAmerican market. However, with the initiation of the globalization, Japanese brandssuch as Honda, Suzuki and Yamaha entered the market and disrupted the existedmarket scenario. The market trend slowly changed towards the lighter and fasterJapanese bikes. In addition, the sporty styled theme of the Japanese bikes also createdattractiveness among the American It has been identified that the global motor vehicle industry is still in the growingstage despite the economic downturn in the global environment. In this context, Weisset al. (2015) commented that the major challenge faced by the industry is the naturaldisaster, which further created the pricing pressure, rising the fuel price and overallinterest rates. Savino, Pierini and Baldanzini (2012) estimated that that the global two-wheeler the connectors market could grow at CAGR of 8.38% during the period 2017-2021. On the other side, Bhattacharya, Mukhopadhyay and Giri (2014) mentioned abouta significant trend in the markets is the launch of a next generation ECU connectivitysolution which is namely SmartSeal connector. This next generation SmartSealconnector remains as the compact ECU connectivity solution, which further includes arugged connector holding the capacity of withstanding the demand of two wheelermarkets. According to Bhattacharya, Mukhopadhyay and Giri (2014) one driver in themarket is the rise in the sales of luxury and ultra luxury motorcycle. Because of thislegacy of luxury as well as ultra luxury motorcycles, and the increased need for comfort,the sales of two-wheeler vehicles across the globe have increased significantly.Furthermore, it is also observed that in comparison to the commuter as well as the mid-segment motorcycles, the ultra luxury and luxury such as Harley Davidson haveobserved a higher torque and extending reliability and durability. Thus, Kumaraswamyet al. (2012) mentioned that there is a state of growth in global demand for luxurymotorcycles, which includes electronic cruise control (ECC). The major key vendors oftwo wheelers in the industry are such as Bosch, Hirose Eletric, Japan, YAZAKI andothers. The following figure shows the market share for two wheelers.
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