In the 1980s, Poor Quality and Japanese Imports Drove the Harley-Davidson

question 195

Multiple Choice

In the 1980s, poor quality and Japanese imports drove the Harley-Davidson motorcycle company to brink of bankruptcy. The company's share of the U.S. super-heavy-weight market - motorcycles with engine capacity of 850 cubic centimeters or more - collapsed from more than 40 percent in the mid-1970s to 23 percent in 1983. However, by 1989, Harley-Davidson controlled some 65 percent of the U.S. market; and both in
The U.S. and overseas markets, the company won't be able to meet demand for years.
From a marketing perspective, what was the likely first step in Harley-Davidson's resurgence?

• A)seeking new markets for the motorcycles both in the U.S. and in foreign markets
• B)development of a new mission statement and subsequent marketing strategy
• C)repositioning their product in the minds of motorcycle buyers
• D)performing a SWOT analysis

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.

Hail Insurance

A type of insurance policy specifically designed to protect crops from hail damage.

Total Product

The total quantity of output produced by a firm over a given period of time.

Marginal Product

The extra production generated when one more unit of a particular input is added, with all other inputs remaining unchanged.