{"id":1531,"date":"2015-12-05T23:30:58","date_gmt":"2015-12-06T04:30:58","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/harley-davidson-being-bad-can-be-so-so-good\/"},"modified":"2015-12-08T23:11:18","modified_gmt":"2015-12-09T04:11:18","slug":"harley-davidson-being-bad-can-be-so-so-good","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/harley-davidson-being-bad-can-be-so-so-good\/","title":{"rendered":"Harley-Davidson: Being Bad Can Be So, So Good"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><strong>Delivering dreams of personal freedom.<\/strong><\/p>\n<p>What is it like to fulfill dreams of personal freedom? Try asking Harley-Davidson. Their mission statement isn\u2019t to sell you a motorcycle, it\u2019s to sell you the purest form a freedom. That higher calling has led to some remarkable success. With over a century of history, Harley has been the dominant player in the heavy cruiser market globally, and it\u2019s no surprise why when you open the engine cover for a closer look.<\/p>\n<p><strong>It\u2019s not transportation. It\u2019s a lifestyle.<\/strong><\/p>\n<p>Harley&#8217;s success is primarily due to an extreme, fanatical loyalty to the brand. Unfortunately there isn&#8217;t a statistic of the most commonly tattooed corporate logo, but a quick Google search will show the smart money is on Harley.<\/p>\n<p><iframe loading=\"lazy\" title=\"Try Living Off the Straight &amp; Narrow | 2015 Harley-Davidson Motorcycles\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/uHvx_VSbwK0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Harley has completely captured the spirit of the biker and created a beacon for its customers. They revel in their counterculture status. Think they\u2019re the black sheep? Good. Look no further than Harley\u2019s current holiday marketing: they want you to be on the naughty list; let the nice list get a tie, we\u2019ll take our leather and chrome.<\/p>\n<p>Harley&#8217;s loyalty is driven through a quality product, continual innovation, classic design, and a complete integration of the riding experience in brand. From the bikes, to parts, to dealers, to apparel and branded gear, to the community, Harley provides you the complete biker experience.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1521 alignleft\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Holiday-Ad-300x169.png\" alt=\"H-D Holiday Ad\" width=\"300\" height=\"169\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Holiday-Ad-300x169.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Holiday-Ad-1024x578.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Holiday-Ad-600x339.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Holiday-Ad.png 1534w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><strong>Product first. Everything else is secondary.<\/strong><\/p>\n<p>Harley has an iconic look. Being over a century old gives them heritage and tradition, and you see it when you look at their cruisers. But underneath that classic style are some of most\u00a0technologically advanced bikes on the road. Modern Harleys can come equipped with Bluetooth, heated seats and grips, touch-screen navigation, LED headlights, and adjustable suspensions. These are some of the modern bikes on the road, and Harley maintains extremely high quality standards.<\/p>\n<p>To illustrate the impact of Harley\u2019s success through quality, let\u2019s take a brief history lesson. An infamous era of Harley history is during the 70s when they were acquired by AMF, who promptly went on a cost-cutting spree. Labor relations and material quality suffered, and Harley almost went bankrupt. Only after company management bought Harley back they could turn their attention to repairing the damage done by AMF. Today Harley production is characterized by production-on-demand and exemplary quality standards.<\/p>\n<p>Beyond quality, they\u00a0focus significant attention on innovation. Contrary to popular belief, Harley doesn\u2019t just make heavy cruiser touring bikes. They introduced the V-Rod, which features an engine developed in coordination with Porsche \u2013 no strangers themselves to high-performance engine design.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3544 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-VRod-300x204.png\" alt=\"H-D VRod\" width=\"300\" height=\"204\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-VRod-300x204.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-VRod-1024x695.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-VRod-600x407.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-VRod.png 1178w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>And they recently introduced their new <em>Street<\/em> line of bikes. These are the first light cruisers (less than 700cc\u2019s) and serve two valuable missions. The first is to provide a more accessible entry point for new riders. A 900 lb. Electra Glide can be intimidating for a\u00a0newbie, but a Street 500 might be the perfect starter bike to get a customer hooked.<br \/>\n<a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3542 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street-300x174.png\" alt=\"H-D Street\" width=\"300\" height=\"174\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street-300x174.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street-1024x594.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street-600x348.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Street.png 1479w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>The second is to help Harley in its mission to become a global brand. Emerging markets like India and China are no strangers to bikes, but large Harleys are still somewhat rare. The Street gives them a presence that is more compatible with current riding lifestyles. Harley took extra care to maintain their quality standards here as well; the Street isn\u2019t just a small bike, it\u2019s a small Harley that fits perfectly in the image of the broader lineup and maintains a premium price relative to competitors. They even took special care to maintain the classic exhaust rumble.<\/p>\n<p>And lest we forget project Livewire, potentially the most innovative motorcycle ever made. Still in development, Livewire is the first all-electric bike from Harley. Livewire shattered the perception of what a Harley can be, but still stays true to the brand. It\u2019s also been a powerful promotional tool, making a broad debut in the recent Avengers: Age of Ultron.<\/p>\n<p><iframe loading=\"lazy\" title=\"Harley-Davidson Project LiveWire\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/TcjMUg38NdU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Lean manufacturing<\/strong><\/p>\n<p>Because of their dominance in the cruiser market, Harley enjoys premium pricing for its bikes (and parts and apparel). But they still take a very focused approach to costs, and their factories employ Just-In-Time (JIT) processes very similar to the Toyota model. This allows them to produce with lower working capital throughout the process while ensuring quality. Harley takes a fanatic approach to eliminating waste; they\u2019ve even reengineered their packaging with suppliers to eliminate excess packing and creating returnable shipping containers. This is only possible through the tight relationships they\u2019ve built with an extensive supplier network. Further benefiting Harley is surge manufacturing, allowing them to more quickly respond to customer needs, when and where they occur.<\/p>\n<p>For an inside look at Harley-Davidson production, check out the video:<\/p>\n<p><iframe loading=\"lazy\" title=\"The Superbowl Commercial, You didn&#039;t see! Harley-Davidson, Made in America, sending freedom\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/bBmkwK1qb2c?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Personalization through customization<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1522 alignleft\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Ad-300x225.jpg\" alt=\"H-D Ad\" width=\"300\" height=\"225\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Ad-300x225.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Ad.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Ad-600x450.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A motorcycle is a highly personalized purchase. After all, there is no logical reason to buy one, it\u2019s all emotion. That personalization manifests itself in customization. Rarely will you find a stock bike still as it was from the factory; every rider seeks to make their ride their own. There are nearly endless ways to customize your motorcycle, and Harley supports this by offering a massive parts catalog and the ability to install right at the dealer. By taking over the aftermarket, Harley increases its sales, protects against aftermarket competitors.<\/p>\n<p>An extension is their apparel business. Harley invests extensively in what you wear as well as what you ride, whether casual t-shirts or heavy-duty riding gear. Walk into any dealer and you&#8217;ll see a distinctive design and apparel &#8211; many Harley customers stop in at dealers and collect t-shirts. This keeps customers loyal by having them brand themselves. Speaking from experience, it&#8217;s possible to make an entire wardrobe out of Harley gear.<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Apparel.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3553 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Apparel-300x114.jpg\" alt=\"H-D Apparel\" width=\"300\" height=\"114\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Apparel-300x114.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Apparel-600x228.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Apparel.jpg 960w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>Enable the end-to-end ownership experience<\/strong><\/p>\n<p>Finally, Harley has positioned itself to maximize the end-to-end experience of motorcycle ownership. Since 2000 the Harley Davidson Riding Academy has trained over 400,000 new riders, which means new customers. And in 2014 Harley launched the academy internationally to continue developing\u00a0the Street line. From education through\u00a0offering financing and insurance through their own Harley Davidson Financial Service, they make sure they are the first choice when a customer is ready to get in the saddle.<\/p>\n<p><strong>Staying on the throttle<\/strong><\/p>\n<p>Harley doesn\u2019t seem content to rest on their laurels. Through their end-to-end ownership experience and emphasis on new, smaller bikes, they\u2019ve been expanding into key demographics. This includes strong sales with young adults as well as women \u2013 both rapidly growing motorcycle markets. As the market grows,\u00a0Harley is well positioned to capture that value. Let freedom ring.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1523 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Market-Share-300x127.png\" alt=\"H-D Market Share\" width=\"383\" height=\"162\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Market-Share-300x127.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Market-Share-1024x433.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Market-Share-600x254.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/H-D-Market-Share.png 1639w\" sizes=\"auto, (max-width: 383px) 100vw, 383px\" \/><\/p>\n<p><iframe loading=\"lazy\" title=\"HARLEY-DAVIDSON - Inner Child\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/X1NYIYd54JQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Sources:<\/p>\n<p>Harley Davidson Company website: <a href=\"http:\/\/www.harley-davidson.com\/content\/h-d\/en_US\/company.html\">http:\/\/www.harley-davidson.com\/content\/h-d\/en_US\/company.html<\/a><\/p>\n<p>2014 H-D Annual Review: <a href=\"http:\/\/ar.harley-davidson.com\/\">http:\/\/ar.harley-davidson.com\/<\/a><\/p>\n<p>Kelleher, J 2014, \u2018Not your old man\u2019s Hog: Harley bets big on a small bike\u2019, <em>Reuters<\/em> 8 April. Available from: Factiva<\/p>\n<p>Holoway, H 2015, \u2018Big Wheel: Anoop Prakash is leading Harley-Davidson\u2019s new northern subsidiary and it\u2019s expecting growth from some unlikely sources\u2019, <em>Financial Post Business<\/em> 1 November. Available from: Factiva<\/p>\n<p>2003, \u2018Harley-Davidson Revs up Just-in-Time Manufacturing Performance with Sterling Commerce Web Forms and Bar Code Technology\u2019, <em>Business Wire<\/em> 8 December. Available from: Factiva<\/p>\n<p>2000, \u2018Returnables smooth Harley\u2019s JIT flow\u2019, <em>Modern Materials Handling<\/em> 15 October. Available from: Factiva<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Harley-Davidson doesn&#039;t sell you a bike, they sell you freedom.<\/p>\n","protected":false},"author":1034,"featured_media":1534,"comment_status":"open","ping_status":"closed","template":"","categories":[116,312,311,313,161,310,17],"class_list":["post-1531","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-automotive","category-freedom","category-harley-davidson","category-jit","category-manufacturing","category-motorcycles","category-supply-chain"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Harley-Davidson: Being Bad Can Be So, So Good - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/harley-davidson-being-bad-can-be-so-so-good\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Harley-Davidson: Being Bad Can Be So, So Good - 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