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Marinating a good relationship with suppliers is critical in the manufacturing industry. Over the years, Harley-Davidson emphasized operational integrity and has developed a close relationship with its suppliers. Its manufacturing process includes using in-house supplier, which allows Harley-Davidson flexibility in product development as well as efficiency. This comprehensive manufacturing strategy also increases the company's production capacity, creating value from economies of scope. .
Another competitive advantage Harley-Davidson possesses is the consistent growth of strong revenue. Harley-Davidson outperformed the market in 2001, achieving 16 consecutive increases in revenue and earnings. While the industry is slowing down, the company's revenue grew 17.1%, and earning per share rose by 26.4% from 2000. The success of Harley-Davidson's earnings has allowed it to spend large amounts of capital for product development, permitting it to constantly come up with products. The success of the company also reflects its great ability to manage its company resources. .
Harley-Davidson also has as a very good relationship with its employees. Harley-Davidson offers long-term agreements to their employees in Missouri, Pennsylvania and Wisconsin. Its organizational culture was acclaimed also by Fortune magazine, who named the company for "Top 100 Companies to Work For." .
Despite, the current success of Harley-Davidson, its future may be in question. The median age of its buyers is nearly 46, up from 35 in 1987. This may cause a problem in the long run because as its median age of its customer increases, sales will decrease due to changes in lifestyle. Also, Harley-Davidson is loosing its market share in the younger market. Competitors like Honda are slowing gaining foot in the younger and lightweight market. The company's share of the US new bike market has dropped to 23 percent, down from a 27 percent peak in 1997 as Japanese rivals increases their competition.
