Harley Davidson Executive Summary

Paper Summary:

This paper discusses Harley Davidson's entry into the Chinese market. It describes the goals of the company and its performance measures. It then looks at consumer behavior within China. The paper presents a risk and return analysis for the Chinese market and discusses the international risks for Harley Davidson of not entering the Chinese market.

Table of Contents:
Organizational Purpose
Organizational Goals
Performance Measures
Consumer Behavior
Global Markets
Risk and Return Analysis
International Risks

From the Paper:

"If the company does not make a move now, it also runs the risk of losing out to international competition such as BMW, which is striving to build its motorcycle market in China (Nakashima, 2006, p.1). Honda has also begun a joint venture in the nation (Schmid, 2004). Volvo has decided to move car production to China as have other foreign auto manufactures, making the country the world's largest auto market ("Harley-Davidson roars into China" BBC News, 2006; Schmid 2004). Chinese consumers clearly are seeking vehicles with more power.
"China is a global economic powerhouse that Harley and other American enterprises can no longer afford to ignore. U.S. imports from China averaged $163 billion in 2003 and only $28 billion worth of American goods were sold in China (Schmid 2004). To redress this balance, American companies like Harley Davidson must act now, and seek lobby to change unfair national laws that limit motorcycle use."

Sample of Sources Used:

• "Harley-Davidson roars into China." BBC News. 24 Mar 2006. 24 May 2007. http://news.bbc.co.uk/2/hi/business/4842736.stm
• Harley Davidson USA. Official Website. 2007. 24 May 2007 http://www.harley-davidson.com/wcm/Content/Pages/home.jsp?locale=en_US
• Harley Davidson China. Official Website. 2007. 24 May 2007 http://www.harley-davidson.cn/
• Nakashima, Ryan. "Harley-Davidson Plans China Dealership." AP Wire. CBS News. 19 Jan 2006. 24 May 2007. http://www.cbsnews.com/stories/2006/01/19/world/main1223010.shtml
• Schmid, John. "Harley-Davidson's struggles illustrate both the promise and peril of China." JC Online. 8 May 8, 2004. 24 May 2007. http://www.jsonline.com/story/index.aspx?id=228039

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