Question

). A Harley Davidson stockholder criticizes present management: “It is a mistake of the greatest magnitude that we abdicate a decent share of the European motorcycle market to foreign competitors, simply because we do not gear up our production to meet the demand.” Discuss.). A Harley Davidson stockholder criticizes present management: “It is a mistake of the greatest magnitude that we abdicate a decent share of the European motorcycle market to foreign competitors, simply because we do not gear up our production to meet the demand.” Discuss.

Answer 1

I don't think abducting a large share of the European motorcycle market to foreign competitors is as large of a mistake as this stockholder makes it out to be. I believe that investing so much money into producing bikes to meet demands Europe is very risky and it might not be a risk worth taking. Harley Davidson also has niche in the American market that I am not so sure will carry over to the European market because of the cultural differences.

Answer 2

Answer:

The shareholder argues that Harley-Davidson is losing European market share by failing to scale production to meet demand, allowing competitors (e.g., BMW, Ducati) to dominate.

Key Points:

1. Missed Opportunity: Underproduction sacrifices revenue and brand presence in Europe.

2. Competitive Risk: Rivals gain loyalty while Harley’s market share erodes.

3. Solution: Invest in flexible production (e.g., localized factories) to align supply with demand.

Bottom Line: Proactive capacity expansion is critical to compete globally.