Red Flag
#1
Red Flag
In 1981, after a group of executives conducted a leveraged by back from AMF, Harley Davidson was in very poor condition. I remember hearing from people at dealerships that they didn't expect Harley Davidson would be around in the next couple of years. But, people were very surprised at how Harley Davidson went from being a basket case to actually having waiting lists to purchase bikes in the 90's. This transformation didn't happen by accident. It took everyone employed by Harley Davidson to work extremely hard, make sacrifices, and complete determination and commitment. However, I have been noticing some very disturbing trends. Harley Davidson's stock has sharply decreased, they are losing market share, and have laid off employees. There seems to be a consensus of opinion that Harley Davidson's struggles are the result of a strengthening of the dollar and weakening of the yen. This allows Japanese manufactures to undercut Harley Davidson's prices. At the same time, Harley Davidson is not lowering their prices and this causes a decline in sales. I am by know means an expert on these issues. But, it seems that Harley Davidson is gambling that the market will correct itself. I would be interested to hear peoples opinions about this strategy, what could happen if this doesn't work, and how they could counterbalance this problem.
#3
#6
I think that they should lower there prices. But they will cry to the government like they did in the late 70's and just have the import tax raised. But now the difference is Victory and Indian are American and you can't put tarrifs on them . So they're in a corner and forced to compete against the competition. They need to start making more then just motorcycles like Polaris !
Last edited by Iron lHorse; 12-25-2015 at 11:54 AM.
#7
In 1981, after a group of executives conducted a leveraged by back from AMF, Harley Davidson was in very poor condition. I remember hearing from people at dealerships that they didn't expect Harley Davidson would be around in the next couple of years. But, people were very surprised at how Harley Davidson went from being a basket case to actually having waiting lists to purchase bikes in the 90's. This transformation didn't happen by accident. It took everyone employed by Harley Davidson to work extremely hard, make sacrifices, and complete determination and commitment. However, I have been noticing some very disturbing trends. Harley Davidson's stock has sharply decreased, they are losing market share, and have laid off employees. There seems to be a consensus of opinion that Harley Davidson's struggles are the result of a strengthening of the dollar and weakening of the yen. This allows Japanese manufactures to undercut Harley Davidson's prices. At the same time, Harley Davidson is not lowering their prices and this causes a decline in sales. I am by know means an expert on these issues. But, it seems that Harley Davidson is gambling that the market will correct itself. I would be interested to hear peoples opinions about this strategy, what could happen if this doesn't work, and how they could counterbalance this problem.
Do you own a Harley - if not, what's your particular interest in this subject?
https://www.facebook.com/lawrence.kauderer
My opinion - they're here to stay, ....not going anywhere.
Last edited by 1004ron; 12-25-2015 at 11:10 AM.
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