Harley Davidson Case AnalysisIn 2007, Harley Davidson was the most profitable motorcycle company in the world. They had just posted strong earnings and were committed to achieving earnings per share growth of 11-17% for each of the next three years. Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task as Harley's domestic market share had recently reached just under 50%. The home market was where Harley achieved the most growth over the last 20 years, and as it stabilized, the million dollar question was where Harley would get 11-17%. Harley Davidson has built a brand that is much more than just a brand. spread eagle on a loud motorcycle, but those who buy a Harley are buying a lifestyle, an experience, or, if you will, a piece of American culture. Because of this differentiator, Harley was able to charge a premium for its products and still succeed against low-priced competition. Harley built on this lifestyle when it created the Harley Owners' Group (HOG). Harley would promote shows, rallies and races through HOG in the United States and in other countries as well. This helped transform its coveted image into a more exclusive club. In the 1990s, Harley Davidson experienced extraordinary growth and sought solutions to its unique problem of balancing production with its soaring demand. In 1996, Harley announced the “2003 Plan.” The “2003 Plan” was a huge undertaking to increase its production capacity, introduce numerous new models and increase international expansion. By the end of this planned expansion period, Harley's sales had grown tenfold in just 23 years. However, in 2007, domestic demand was starting to weaken, as several economic factors... middle of paper... were linked across Europe. The advertising would more than pay for itself by increasing Harley's sales volume. The new motorcycle developed with European motorcyclists in mind would have been able to compete better with other major European manufacturers. Third, I would implement an advertising plan in several major cities across the United States focusing on fuel-efficient Harley motorcycles and the pride of owning a Harley. With gas prices around $4 a gallon, there's really no better time to own a motorcycle, so why not a Harley? I believe motorcycle sales will increase as the price of gasoline increases, so it shouldn't be difficult to recoup any advertising costs. In conclusion, I believe Harley can achieve its growth goals by reducing component manufacturing costs, improving its product offerings in Europe, and through a smart advertising plan in both North America and Europe.