Question

In: Accounting

Assess Harley Davidson’s mode of expansion (Joint Venture, wholly owned, Licensing/Franchising etc.)

Assess Harley Davidson’s mode of expansion (Joint Venture, wholly owned, Licensing/Franchising etc.)

Solutions

Expert Solution

Hraley Davidson an American based multinational company is a world known motor bike company. it has been able successfully market its brand high powered, heavy weight bikes through efficient management, marketing and managemnt.

Hraley Davidson's modes of expansion has borught them to the global level. Now, the company sells its bikes in more than 60 countries which include the markets of North America, Asia, Europe as well as African country.

the most important policy of the HD of expansion is Made in America. the company says that the compnay has been established to integrating the buyers with the American dreams. so the leaders of HD never went overseas for the manufacturing of the parts. it shows the brand loyalty. HD has joint venture with many countries but only for the assembling work and to cope with the capital and risk factors. but the manufacturing belongs to America to make the people believe that theey are belonged to the American dreams.

HD's expansion policy looks quite complex. its success stories tell about the successful expansion policies in the form of joint venture, wholly owned, licence etc. but sometime it can also be said that it would have been more successful if the company's manufacturing would also have ben functioning in other countries also. because some countries have very cheap labour, cheap resources and most importantly the expenditure of transportation will also hit the profit of the compnay but company alsways says that we focus on 'Transformation' not on 'transportation'. mean sthey clearly indicate that they alsways see the products of the company with 'Made in America'which is a part of their policies. morever we can just say that the company's success story tells us that not only the developed countries but also the developing countries have become a large market of the company with the help of their expansion policies in the form of joint venture, wholly owned and licensing.

today we can easily see the HD's bikes on the road of both the developed as well as developing countries. this has been made possible with the expansion policies and the brand loyalty of the country.  


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