Harley-Davidson's 2 divisions are expected to make $5.3 billion for full-year 2019
(1) Motorcycle and related Revenue - $4.6 billion (86%), and
(2) Financial Services Revenue - $0.7 billion (14%)
Harley-Davidson's Business Model
What Does HOG offer?
Harley-Davidson Motor Company was founded in 1903. In 1986, Harley-Davidson, Inc. became publicly held and currently is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company specializes in heavyweight (601cc+) cruiser and touring motorcyclesThe Company's long-term strategy, announced in 2017, is to build the next generation of Harley-Davidson riders globally and includes the following 2027 objectives:Build two million new Harley-Davidson riders in the U.S.Grow the Harley-Davidson international business to 50 percent of its total annual volume. Launch 100 new, high-impact Harley-Davidson motorcycles. Deliver superior return on invested capital for HDMC that falls within the top quartile of the S&P 500.Grow the business without growing its environmental impact
Operating Segments:Motorcycles and Related Products Segment:
The Motorcycles segment consists of HDMC, which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise and related services. The Company conducts business on a global basis, with sales in the United States, Canada, Latin America, Europe/Middle East/Africa (EMEA) and Asia Pacific.Financial Services Segment:
The Financial Services segment consists of HDFS which is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles. HDFS also works with certain unaffiliated insurance companies to provide motorcycle insurance and protection products to motorcycle owners. HDFS conducts business principally in the U.S. and Canada.
What Are The Alternatives?
Major competitors are Triumph, Yamaha, Ducati, and Royal Enfield brands.Mediumweight and lightweight segment motorcycles are also an alternative but Harley has started to add some of them in its offerings.
What Is The Basis of Competition?
The principal factors that determine consumer vehicle preferences in the markets would include overall vehicle design, price, quality, available options, reliability, and functionality.
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