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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“The Great American Logistics Machine” Catches the Coronavirus

“The Great American Logistics Machine” Catches the Coronavirus

June 30, 2020

Logistics – the seemingly simple process of moving goods from Point A to Point B – has been an American strength and continually improving science.  Witness the ability of Amazon to deliver in as little as 2 hours in some markets.

The public has taken this capability for granted.

But now, in the Coronavirus era, we are experiencing rationing of meat, shortages of basic goods (paper products) and necessary ones (masks, drugs).  Even for products and ideas not invented here, starting with the industrial revolution and most currently demonstrated by the smartphone, Americans improved and mass marketed better products in smoother supply chains.

How else could Walmart serve 200 million customers a year across 11,000 stores?

Even the remarkable performance of Amazon is enabled by Google mapping of the earth.

The much maligned U.S. postal service delivers more letters per employee than any other country in the Group of 20 (per this 2012 Oxford study).  The historical success of the public-private partnership that landed a man on the moon 51 summers ago is now struggling to deliver testing kits despite a much publicized appearance of industry leaders with the President in the Rose Garden.

The Continue reading

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Boxes Take a Seat

Boxes Take a Seat

More airlines are joining the “passenger freighter network” to use their passenger aircrafts to deliver cargo, as demand for passenger travel dwindles in the wake of COVID-19.

Major airlines in the U.S., including American, United, and Delta, and their global partners such as British Airways, Korean Airlines, Lufthansa, and Qantas, are dedicating freight capacity for cargo operations to keep global supply chains from food to medical supplies open.


Video Spotlight: American Airlines transports medical cargo from U.S. to Europe (Mar 20, 2020, WPLG Local 10)


This post is based on the Forbes article, More Airlines Are Stuffing Cargo Into Passenger Seats To Counter Coronavirus Slump, by Cathy Buyck, March 26, 2020, and the YouTube video in the Spotlight. Image source: Digital Vision/SuperStock

Discussion Questions:

1. How does COVID-19 affect capacity planning decisions for airlines?

Guidance: As governments all over the world respond to the COVID-19 pandemic by closing borders, all passenger services to and from the countries are temporarily suspended.  Airlines now find themselves with excess capacity as demand for passenger travel dwindles.

2. How do airlines address excess passenger capacity in the midst of COVID-19 pandemic?

Guidance:  While the demand Continue reading

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