Galilea Hernandez
International Management
Harley-Davidson Assessment
We all know Harley-Davidson Motorcycles for being iconic and associated with a certain
lifestyle, but it took years for the company to get the reputation they have today. When making
the efforts to reach international customers, Harley-Davidson was approached with several
challenges. One of the first set of challenges the company faced was meeting emission
requirements when entering the Indian market. Rather than trying to adjust their product to
comply with regulation, Harley-Davidson instead launched a campaign that would require
emissions to meet European-Union based requirements. Another challenge the company faced
was deciding their entry structure approach. The approach that was chosen ended up being one
that gave them enough control in the manufacturing process and using the lower labor cost in
India. Not to mention, there were also high tariffs imposed on imported motorcycles which were
very costly for the company. Other challenges include, the American Harley-Davidson image did
not have a strong presence in other countries and with other fierce competitors, it was also
difficult to meet customer preferences. In 2018, when the EU retaliated against the U.S. tariffs,
Harley-Davidson decided to switch gears in their production strategy. A pro of implementing this
strategy was that the company would not have to raise the prices of their motorcycles due to the
tariffs. In not having to raise the prices of their products, the company would be able to secure
and protect their market share against European competitors. One of the cons of moving
production into the European market was losing the good reputation that it had in its home
country and the portrayal of the American lifestyle which was the image of the brand. It also
was not helpful that the company was also facing public scrutiny from then president Donald
Trump.