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Hardley Davidson

Essay by   •  March 29, 2012  •  Case Study  •  347 Words (2 Pages)  •  1,667 Views

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Hardley davidson question answers Do you consider Harley Davidson to be victim of unfair competitive practices or of its own lack of strategic vision

Harley-Davidson Company Inc . had more likely been a victim of its own lack of strategic vision in dealing with competitors . In the case study Harley-Davidson , Inc . was founded in 1903 and is the only remaining American motorcycle manufacturer . During the 1950s and 1960s Harley-Davidson had a virtual monopoly on the heavyweight motorcycle market . When the Japanese manufacturers entered the market in the 1960s offering lightweight motorcycles backed by huge marketing programsthat increased demand for motorcycles , Harley-Davidson became too complacent about their market position . These manufacturers , which included Honda Kawasaki and other brands , eventually began building larger bikes that competed directly with Harley-Davidson . The competition also offered 20 to 25 models , while Harley Davidson sticked to four models until 1976As a result , Harley-Davidson experienced a sharp drop in sales because of the intense competition

Thus , Harley-Davidson senior executives signed a letter of intent to purchase Harley-Davidson Motor Company from AMF in a leveraged buyout in 1981 . They implemented new quality management and manufacturing methods A year later , the company successfully petitioned the US federal government for tariffs on imported Japanese motorcycles flooding the US market . In 1983 , Reagan implemented measures to protect Harley-Davidson Motorcycles by imposing a sliding-scale , five-year tariff , which started at 45 percent , on Japanese heavy motorcycles . He removed the tariffs in 1987 , a few months early . President Reagan also negotiated an agreement with Japan that limited its auto exports , and negotiated agreements with 18 different countries to reduce steel exports . Although the company was starting to make money in the early 1980s , its creditors wanted payment and Harley-Davidson nearly had to for bankruptcy at the end of 1985 . However , through some intense negotiations and some improvements in its management and operations , it stayed in business and rebounded to become a highly profitable company

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