Place yourself in the role of a market manager at Harley Davidson.
Your company, Harley-Davidson, has chosen to compete in various country markets in Europe and Asia using an export strategy. Read the sections of its latest annual reports from 2009 and 2010 at www.harley-davidson.com related to its international operations. Why does it seem that the company has avoided developing production facilities outside the United States?
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Why does it seem that the company has avoided developing production facilities outside the United States?
Harley Davidson has avoided developing production facilities' outside the USA for several reasons. First, US firms develop production facilities outside the US for reducing costs. They seek locations that have low cost resources like raw materials and labor and so develop products that have a low cost so that the price of the product is competitive. However, Harley Davidson has not attempted seriously to reduce costs. It continues to be positioned as a high end product. So, Harley Davidson has avoided setting up operations abroad. Second, even though Harley Davidson has faced declining US sales, it has been able to improve its revenues by selling its bikes abroad. It has opened market after market for exporting its bikes and its sales ...
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