[pic 1] [pic 2]
[pic 3]
Harley-Davidson: Strategic Competitiveness that Spans Decades
By Group #4
Name 1
Name 2
Name 3
Name 4
Table of Contents
Introduction ()
Company History ()
Analysis of external environment ()
General environment analysis
Analysis of internal environment ()
Tangible resources
Intangible resources
Capabilities
Core competencies
The four criteria of sustainable competitive advantage
Competitive advantage
SWOT Analysis ()
Strengths
Weaknesses
Opportunities
Threats
Business Level Strategy ()
Corporate Level Strategy ()
Strategic Leadership ()
Findings ()
Recommendations ()
Conclusion ()
Introduction ()
Harley-Davidson has become a symbol of American culture as the company has not only been selling high-end motorcycles but a dream of freedom. In spite of numerous challenges and tough times, Harley-Davidson was able to survive to become one of the most iconic brands in the world, recognizable for its simplistic but yet effective look comprised of a set of handlebars and two wheels connected with a 45 degrees V-Twin engine. Currently, the company has faced three main issues:
- Many people see Harley-Davidson’s products as leisure, luxurious items.
- It is difficult to efficiently recognize the target market of the company.
- Demand is constantly changing in the motorcycle market.
The situation around Harley-Davidson will be analysed through the internal and external environment discovery, SWOT analysis, business level strategy, competitive dynamics, corporate level strategy, and strategic leadership. Recommendations will be provided based on the findings.
Company History ()
Harley-Davidson Motor Company was founded in 1903 by William S. Harley and Arthur Davidson. Starting as a company producing motorcycles for racing, it achieved a great success on the road allowing it to reap invaluable experience which it used to develop practical and solid design. During the both World Wars, Harley-Davidson got beneficial military contacts resulted in recognition of the company’s products, enhanced reputation, and a loyal customer base represented by the American soldiers. After a series of unsuccessful acquisition that financially distressed Harley-Davidson, the company was bought by the American Machine and Foundry Company (AMF) in 1969. After separation from AMF, Harley-Davidson’s started significantly investing in marketing and research and development (R&D). Since it went public in 1987, the company has recruited around 6,000 employees, developed 1,400 franchises, and opened nine production facilities. However, constantly changing customers’ needs are posing new challenges for Harley-Davidson in the 21st century.
Analysis of external environment ()
General environment analysis
Dimensions | Influences |
Demographic | A shift to multi-generational and multi-cultural audience: no single target customers base like males aged from 29 to 55 |
Social | Reinforcement of cultural stereotypes that motorcycle riders are “risk-seeking freewheelers” Chinese customers prefer utilitarian usage over leisure rides |
Economic | High import duties in China High cost of vehicles for people in developing countries |
Technological | EPA emission standards hardening changes a technological side of engines |
Political/Legal | Free trade laws in the U.S. forbidding “Pure-Harley” dealers Elevated highways motorcycle usage restriction in China |