CCCB Essay Example | Topics and Well Written Essays - 3500 words

CCCB - Essay Example (2002) (2009) The Japanese Invasion The late 1950s saw a crucial time for Harley Davidson because that was the time when the Japanese entered into competition in the market. This meant that Harley Davidson was not the only producer for motorcycles now and had to make certain changes in order to survive. Up till now, the company enjoyed a sort of monopoly over its customers because it could produce motorcycles according to the knowledge that it possessed, as customers were willing to purchase due to being left with no other options as well. This played on the demand-supply situation, pushing the company to continue with its sale of making motorcycles that had very distinguished engines, and were manufactured in a manner that they could be rectified by the customer itself. (Statkenov, Daniel K. 1900-1933.) The Japanese established themselves with Honda over the south Asian markets first, and then spread to the rest of the world in such a way that even in the United States of America, e very second person was purchasing a Japanese manufactured motorcycle. Because of this, the sales in Harley Davidson obviously declined because as when compared with companies like Honda, and then emerging Kawasaki, Suzuki and Yamaha, Harley Davidson motorbikes were very costly, could not be afforded by the average consumer, and was not for every kind of bike rider. The Japanese took advantage of all the demerits that the American motorcycle company had, and took hold over it by producing more customer friendly bikes, that could be ridden by most ages, had simple engines, were east to maintain and repair, and most of all, were much lighter and cheaper. As the Japanese slowly took over the markets, at the same time, the profitability and goodwill that Harley Davidson had created for its self began to decline sharply. The company foresaw a great amount of debt and was unable to raise the complete by back price. In order to sustain survival over the market, the only thing that could be done by Harley Davidson was to cut back on the number of bikes manufactured in order to keep their costs at a minimum price. The company was under the leadership and guidance of people like Richard Teerlink and Jeffrey Bluestein as it underwent a complete transformation before it began soaring upwards and towards growth again. These people evaluated the performance of the company against that of not only its past performances but also performance of the Japanese companies and found out where they were going wrong. They critically evaluated the pros and cons that Harley Davidson faced and in accordance to that made the much needed changes within the organization. Transformation The first set of changes that were made within the company in order to stabilize it was in its human resource department. A proper change cycle was what the firm was made to go through as all unnecessary workers and employer positions were eliminated from the company. Having a good hold over the people that wo rk within the company can really make or break its name in the market. Harley Davidson was started by two people and by 1907 had only a single permanent employee working with the founders. However, after the Japanese invasion into the market, Teerlink decided that it