Business Research Project
HD, Inc. has experienced significant change after the financial crisis of 2008. It has divested assets, restructured its domestic manufacturing plants, and implemented more flexible labor agreements. The company has expanded its international presence to meet global demand for their products (Deinlein, 2015).
The topic of quality has been a major influence in recent HD, Inc. history. When they originally began making motorcycles, their level of quality was known to be high. However, they were bought by ABC Company in the 1960s and were quickly overtaken by issues of poor quality and craftsmanship. When the company went public in 1981, new ownership and investment in new technologies led to higher quality motorcycles (Ulama, 2015). The company has an ultra-strong branding image and built positive relationships with customers. Many have labeled the HD brand as “legendary”. These encouraging relationships and images of a high-quality motorcycle have helped lead to significant increases in sales and revenue (Trendafilov, 2015).
HD, Inc. is an American company that specializes in designing, manufacturing and selling heavyweight motorcycles. HD's motorcycle and related-parts segment account for 93.6% of company revenue (Ulama, 2015).
As the company began selling motorcycles overseas, it relied more on foreign manufacturers of parts and components. Manufacturer start-ups were slower than expected, and the delay in deliveries caused slowdowns in inventory being shipped to dealerships. Manufacturing quality levels and control methods were not up to par with domestic plants. As a result, there have been more defective parts, more unit recalls, and higher variable costs. Qualitatively, there has been a drop in perceived quality and reliability from HD customers (Phillips, 2014). The...