1. THE THREE C’S SYNDROME OF FAILURE
COMPLACENCY
CONSERVATISM
CONCEIT

2. HARLEY VS HONDA INGREDIENTS OF HONDA’S SUCCESS
Willingness to beard the lion in his own den
Confront a dangerous adversary on his own ground
Identifying the potential for expanding the market
Effective use of competitive strategy
Effective use of marketing strategy and a complete marketing mix
Flexibility and responsiveness

3. LEARNING INSIGHTS NEVER UNDERESTIMATE A COMPETITOR
DON’T GET CAUGHT IN THE 3-C’S SYNDROME OF FAILURE
How to avoid 3-C’s syndrome?
-- Monitor the environment
-- Bring fresh blood into the organization
-- strong commitment to customer service and satisfaction
-- continuing corporate self-analysis
ANY INDUSTRY OR MARKET MAY HAVE UNTAPPED POTENTIAL – BUT ONLY AN INNOVATIVE APPROACH CAN HARVEST IT
MASS-MEDIA ADVERTISING CAN BE A POWERFUL TOOL.

4. HOW HARLEY BEAT BACK THE JAPANESE
Leader of super heavy weight motors in the 1970s
Lost shares to Japanese manufacturers
Deteriorating quality
Vaughn Beals, CEO, tried to turn it around
Late 1970s : a series of cosmetic changes
Super-glide: emulating custom bikes
Market share still dwindling
New Management>>Continuing manufacturing problems

5. MANUFACTURING IMPROVEMENTS
JIT inventory systems
More quality concern
Employee involvement in quality control
Dramatic improvement in quality and cost reduction
MARKETING IMPROVEMENTS
(Tariff protection)
Spent heavily to bolster dealers and to develop a close relationship
Harley Owner’s Group (HOG): Maxim “The sale begins after the sale”
1988: Harley’s 85th year celebration
2003: Harley 100th birthday bash (August)

6. NEW LEARNING INSIGHTS A FIRM CAN COME BACK FROM ADVERSITY
HARLEY DAVIDSON FIGHTS BACK
NEW LEARNING INSIGHTS
A FIRM CAN COME BACK FROM ADVERSITY
PRESERVE THE CORE BUSINESS
THE POWER OF A MYSTIQUE