strategic-management

170 CAROL POPE AND JOANNE MACK
EXHIBIT 3 Harley-Davidson Motorcycle Shipments by Region
Harley-Davidson Motorcycle Retail Sales (a)
Heavyweight (651+cc)
2008 2007
(Decrease)
Increase %Change
North America Region
United States 218,939 251,772 (32,833) (13.0)%
Canada 16,502 14,779 1,723 11.7
Total North American Region 235,441 266,551 (31,110) (11.7)
Europe Region (Includes Middle East and Africa)
Europe (b) 40,725 38,866 1,859 4.8
Other 4,317 3,436 881 25.6
Total Europe Region
Asia Pacific Region
45,042 42,302 2,740 6.5
Japan 14,654 13,765 889 6.5
Other 10,595 9,689 906 9.4
Total Asia Pacific Region 25,249 23,454 1,795 7.7
Latin America Region 8,037 5,467 2,570 47.0
Total Worldwide Retail Sales 313,769 337,774 (24,005) (7.1)%
(a) Data source for retail sales figures shown above is sales warranty and registration information provided by Harley-Davidson dealers and compiled by
the company. The company must rely on information that its dealers supply concerning retail sales and this information is subject to revision. Only
Harley-Davidson motorcycles are included in the Harley-Davidson Motorcycle Retail Sales data.
(b) Data for Europe include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland, and the United Kingdom.
Source: www.harley-davidson.com and their 2008 Form 10-K.
performance, touring, and custom. The standard segment emphasizes simplicity and cost,
and the performance segment emphasizes handling and acceleration. The touring segment
for the company focuses on comfort for long-distance travel. Harley-Davidson pioneered this
segment of the heavyweight market. Harley’s custom segment gives owners the opportunity
to customize their bikes. Limited-edition, factory-custom motorcycles are sold through its
Custom Vehicle Operation (CVO) program. Motorcycles sold through the CVO program are
available in limited quantities and offer unique features, paint schemes, and accessories.
Buell motorcycle products emphasize innovative design, responsive handling, and overall
performance. Buell manufactures four families of motorcycles: (1) Sportbike, (2) Street,
(3) Adventure, and (4) Blast. The Blast features a smaller 492cc single-cylinder engine, ideal
for many new riders. MV motorcycle products emphasize exquisite design and high performance.
Buell is active in the racing community and gains publicity from those efforts.
The heavyweight (651+cc) motorcycle market is highly competitive. Harley-
Davidson’s major competitors are based outside the United States and generally have financial
and marketing resources that are substantially greater than those of Harley-Davidson. They
also have larger worldwide revenue and are more diversified than Harley-Davidson. In addition
to these larger, established competitors, Harley-Davidson has competitors headquartered
in the United States. These competitors generally offer heavyweight motorcycles with
traditional styling that compete directly with many of Harley-Davidson’s products. These
competitors currently have production and sales volumes that are lower than Harley-
Davidson’s and have considerably lower U.S. market share than Harley-Davidson.
Harley actively promotes the motorcycling lifestyle in the form of events, rides,
rallies, and Harley Owners Group (HOG). Harley considers the availability of financing
through HDFS as a competitive advantage.
In the United States, Harley-Davidson competes most heavily in the touring and custom
segments of the heavyweight motorcycle market, which accounted for approximately