THE THREE C

1
THE THREE CS SYNDROME OF FAILURE

• COMPLACENCY
• CONSERVATISM
• CONCEIT

2
HARLEY VS HONDAINGREDIENTS OF HONDAS 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
• DONT GET CAUGHT IN THE 3-CS SYNDROME OF FAILURE
• How to avoid 3-Cs 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 ManagementgtgtContinuing 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 Owners Group (HOG) Maxim The sale
  begins after the sale
  
• 1988 Harleys 85th year celebration
• 2003 Harley 100th birthday bash (August)

6

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