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Discussion on: Harley-Davidson decision to has avoid developing production facilities outside the United States

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ncitujjwal

Harley Davidson is a motorcycle company whose headquarter is located in Milwaukee, Wisconsin, US. This firm was founded in 1903 by William S. Harley, William A. Davidson, Arthur Davidson, and Walter Davidson. This firm is an American corporate icon and displays American culture. This firm is one of the world’s biggest motorcycle manufactures. Currently, Matthew Levatich is the president and CEO of this firm. As of 2017, this firm’s revenue was $5.647 billion, net income was $522 million, total assets worth $9.973 billion, total equity $1.844 billion and 5,800 staffs (OUR COMPANY, 2018).

As per my understanding, there are a few reasons the firm only focus its manufacturing inside America because the main aim of the company is to promote American culture through motorbike. If they outsource the manufacturing process outside from America then there might be a chance to mix the culture of different countries and no unique feature on the product may be a danger for the organization. They are popular in the market due to the unique product features so they never want to lose their uniqueness to their competitors so they never want to outsource or manufacture outside the country. The owner and founder of Harley Davidson are so nationalistic and they are American dreamer, they just not sell the product only they also try to make their brand as a big national proud so they never want to lose fame and name of American pride. The third strong reason is they wanted to create job opportunity for national American Citizens first so they never outsource their manufacturing process outsides the countries. Forth strong point is this bike are not pure company manufacturing product, some of the special parts are specially designed by manually and those resources are only available in America only not outsides the countries. These designed are especially symbolize the American culture so that it is difficult to outsource the manufacturing process outsides the country. The Harley Davidson motorbike are high priced in the market so every individual can’t afford it so they have special types of customer and they customize the bike as per their want so that their target customer easily reach to them for buying a product so there is no need of manufacturing unit outside America. Plus, Harley Davidson fears political and economic volatility in other nations and due to these reasons if manufacturing or other costs raises then it will adversely hamper the production and delivering of the motorcycles (Ara, 2014).

References

Ara, D. K. (2014). ‘Harley Davidson’ Success Speaks- Brand Image and Culture: An HR Perspective. International Journal of Industrial Engineering and Management Science, 4 (2), 48-56.

OUR COMPANY . (2018). Retrieved from Harley Davidson: harley-davidson.com/us/en/about-us...