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In the 1980s, a Lapse in Production Quality and an Increase

Question 107

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In the 1980s, a lapse in production quality and an increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super heavy-weight market segment - motorcycles with engine capacity of 850 cubic centimeters or more - shrunk from over 40 percent in the mid 1970s to 23 percent in 1983. But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence?


A) developing a new mission statement
B) repositioning its products in the minds of super heavy-weight motorcycle buyers
C) performing a SWOT analysis to assess the firm's internal and external environments.
D) selling new models of super heavy-weight motorcycles in both the U.S. (current) and foreign (new) markets
E) improving the quality of its products and communicating this to motorcycle buyers

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