Harley-Davidson Motors Out of India

Harley-Davidson Motors Out of India

October 15, 2020

Harley-Davidson has ceased manufacturing operations in India, succumbing to low-cost rivals, high taxes and declining discretionary spending.

With an average sale of 3,000 units a year, Harley-Davidson failed to gain a foothold in the Indian market of 21 million motorcycles and scooters.


Video Spotlight: 


This post is based on the BBC article, Harley-Davidson to exit world’s biggest bike market, by Nikhil Inamdar, September 25, 2020, and the YouTube video in the Spotlight. Image source: ChameleonsEye/Shutterstock

Discussion Questions:

1. What factors contributed to Harley-Davidson’s decision to enter the Indian market a decade ago?

Guidance: The entry factors include (1) India is considered the world’s most lucrative market with an annual demand of 17 million motorcycles and scooters; (2) Harley wants to grow the brand beyond its local U.S. customer base; and (3) a trade agreement.

2. What factors contributed to Harley-Davidson’s decision to exit the Indian market in 2020?

Guidance: The exit factors include (1) demand is too low to derive cost efficiency; (2) high taxes and import tariffs; (3) a slowdown of discretionary spending; and (4) an inability to compete with Indian brands.

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Creative Recipes to Help Restaurants this Winter

Creative Recipes to Help Restaurants this Winter

 

Restaurants made adjustments to reopen this summer. Now, they need to reinvent themselves.

So far, restaurants with outdoor spaces have been able to cope. With winter looming, the flexibility of their operations is being tested like never before. A myriad of solutions is being proposed to protect restaurants from financial disaster. Some involve technology or “remodels” of outdoor spaces, and others promote a completely new strategy with additional service lines. Many restaurateurs wonder how much they will need to invest to keep going and whether it is even worth it.

 


Video Spotlight: Serious Challenges for Restaurant Owners


This post is based on The Washington Post article, Outdoor Dining Has Helped Restaurants Avoid Disaster. But Winter Is Coming, by T. Carman, September 28, 2020, and the YouTube video, Winter Is Coming: Restaurant Owners Worry About Business Impact, by The Wall Street Journal, September 24, 2020. Image source: hatchapong / 123RF.

Discussion Questions:

1. What can restaurateurs do to make their indoor and outdoor spaces safe during the winter months? What is the downside of these investments?

Guidance: Solutions for outdoor spaces include: outdoor heaters, private dining pods, heated tents (some with sliding walls), and Continue reading

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When Health Is Bad Business

When Health Is Bad Business

Combating the spread of drug-resistant bacteria is a losing business proposition.

Big Pharma has abandoned antibiotic R&D, and small pharmaceutical companies are going bankrupt. Several factors contribute to this trend. From an operations standpoint, it is difficult to justify a product with high costs and low demand. The article highlights the difficulty of reconciling profitability and the public good.


Video Spotlight: Fighting Drug-Resistant Germs


This post is based on The New York Times article, Crisis Looms in Antibiotics as Drug Makers Go Bankrupt, by A. Jacobs, December 25, 2019, and the YouTube video, Data Overview: 2019 Antibiotic Resistance Threats Reportby the Centers for Disease Control and Prevention, November 13, 2019. Image source: Shutterstock/Gorodenkoff.

Discussion Questions:

1. Why is the field of antibiotic research unprofitable?

Guidance: There are several reasons why this type of research is unprofitable. R&D costs for new generations of antibiotics are very high, but the time to get a new antibiotic approved is long and sales are poor. Antibiotics are taken for a short period of time, limiting sales volume. In their attempts to control costs, hospitals have been reluctant to spend money on new antibiotics. Warned of the effects of abusing Continue reading

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