Harley Davidson Case Assignment

Texas A&M University-Commerce

 Introduction

Williams Harley and Arthur Davidson have built the Harley Davidson Company in 1903.

The company has become one of the biggest and famous motorcycle firms in the world in 1920.

They spread crosswise very quickly by making themselves accessible as establishments. It was

known as an exceptionally solid and fiscally stable firm. They were perceived as the

heavyweight makers of motorcycles. They have invested big amount of cash in innovative work

in order to help them support their financial work.

The case assesses and clarifies the key arrangement that is accessible for the firm to

utilize. It has kept up operations when contrasted with other motorcycle companies that weren't

extremely productive. The Harley Davidson firm has two sections that they manage. The first is

their scope of motorcycles which incorporates their performance bikes, adornments and parts and

second is the financing section. The financing office gives money related help to merchants,

retailers and free wholesalers. They offer motorcycle insurance and advances to their clients. The

Harley Davidson firm is a noteworthy diversion player in America to create motorcycles and

have setup their organizations all around from which dominant part of the business originate

from Europe, Asia, and North America. Because of its image dependability the firm has

encountered huge development and achievement. In 2008 financial crisis the company stuck in

an unfortunate situation and needed to shut down some of their manufacturing companies

because of financial crisis in US economy. So this thusly influenced the company's development

as the customers were not prepared to spend on rich and luxurious thing. They saw a drop in

deals by 7% and income declined by 2.3%.

Current Situation/ Problem and Issues

 The recent issue is that a brand value wasn't made among its

clients. The requirements, expectation and enthusiasm of the partners weren't met.

Because of the blunder of the firm their objectives to finish their vision was failed.

 The other issue is that the company items were costly, questionable and

not of execution when contrasted with their rivals like the Japanese bike organizations.

When it was obtained by (the American machine and Foundry Company) the attention

was not on the quality but rather a greater amount of getting high benefits. This thusly

made the clients to switch brands as the exchanging expenses would be less and the

Japanese brands were moderate and of execution.

 There wasn't value being included their operations particularly in

the after deals like customer service. Customers nowadays expect new and developed

mechanical elements like new thoughts and developments yet Harley Davidson stayed

unaltered for very nearly 12 years thus when clients would approach them with inquiries

the client's administration would be of no assistance.

Alternatives for each issue

An option for the primary issue would be to engage workers in order to make

them concentrate on valuable activities as this will help in addressing the requirements of

the partners. The advantage and profit of this would be that the partners have a feeling of

having a place and demonstrates the firm care about its customers. The disadvantage

would be that the partners can lose their cash that they had invested in the firm which get

to be misfortunes.
 An option for the second issue would be to ensure the items before they take off

to be solid quality attempted and tried for performance. The advantage is that it would

ease in distinguishing the issues which can conceivably emerge thus this assurances

adequacy and productivity on the items being sold to the business sector. The

disadvantage would be that occasionally malfunction could happen and security may not

be ensured as it is all created by technology and work.

The option for the third issue would be to enhance the after deals administration

by enhancing the customer service administration group. It should be possible by giving

sufficient preparing and training, attractive advantages and pay rates. The advantage of

this procedure is that it will encourage the workers to enhance their aptitudes in attracting

the clients to purchase the items. The disadvantage will be that the representatives can

demonstrate less enthusiasm for their work if the advantages and the work environment

doesn't appear to be appealing. This thusly can influence the client administration being

given.

Justification to selected Alternatives

To justify the alternatives, the items are tested and tried before being sold out.

This can help in knowing the quality, realness and uniqueness of the item. Harley

Davidson was known for their standard items. Before being acquired by the AMF, just

about 33% of its creation was saved and sold to the US armed force. So this made their

motorcycles to be class separated advancement during a motorized warfare.

It is additionally reasonable for a firm to have their vision and mission and

implant their partner's enthusiasm for the vision as it helps them to anticipate their future.

This activity is upheld by a proactive basic leadership and considerations. Even during
the recession time the firm had a solid stage to keep delivering in order to meet the

requests which was successful.

Conclusion

In conclusion we can say that Harley Davidson Company is an example of

success despite all the downfall that it suffer in 2008. The strong brand name keeps the

company going despite heavy opposing forces. The firm had a defining moment after

AMF quit and when they presented new motors and bicycles. The company must one

look into expanding elsewhere in the world where motorcycles are a common means of

transport. With the statutes of logistics upgrade and in the nick of time stock methods, the

firm could accomplish upper hand or more normal returns. It likewise helped them to

achieve productivity in their operations by including esteem. Also, the company must

cater to its employees just as it does to the customers. Employee loyalty is just as

important as customer loyalty. With a new business strategy in place the company could

beat other brands, such as Honda and other Indian brands that are coming up with low

cost motorcycles.
Appendix A
 1. Outline the threats in Harley-Davidson’s external environmental.

Which threats pose the greatest short-term and long-term risks for the company?

The threats mentioned in the case was that first the consumers viewed the product as

leisure then was the struggle in managing target market and finally the demand for cost drivers

for motorcycle markets are ever changing. The threat which poses the greatest short term and

long term risks was the struggle to manage the target market and the price of bikes that keeps

fluctuating. They also faced threats of global markets as countries lowered their prices of

motorcycles and made it more affordable and convenient as they knew that the Harley Davidson

firm would be a strong competitor.

 2. Identify the company’s core competencies. Given the existing

situation, does Harley-Davidson have a competitive advantage that is sustainable?

The core competencies of the firm were price differentiation and brand loyalty. The

firm’s perceived value was of creating a brand loyalty through the title of “American dream of

freedom”. Their focus and target was on customers who valued style, heritage, reputation and

durability. This was all made possible with the resources and capabilities put together which

gave them competitive edge over their competitors (Zheng Zhou, Yim&Tse, 2005). The price

differentiation was another core competency. The consumers saw the brand as a strong quality

with high cost for the elite people. Their premium products have been established for a long term

and the success of that has helped them attain competitive advantage among its consumers. Yes

Harley Davidson does have a competitive advantage that is sustainable in the long run. It is

because of the strategy it has formulated and implemented. They were good in doing things

better than their rivals. That is they created a brand name and reputation in the market locally and

globally. They also were able to produce different types of bikes by keeping production costs

low which in turn made it hard to imitate or substitute for the competitors as their bikes were

unique. (Agarwal, Malhotra, & Bolton, 2010).

3. Define Harley-Davidson’s business strategy. Based on your analysis,

do you recommend any changes in strategy to address the threats facing the

company?

The firm’s business strategy was the differentiation strategy. They focused and targeted a

specific group of people. Harley Davidson did it so as to attain a competitive advantage. They

also used it to build a brand image and market their products as high value and of quality to

customers who regarded and valued it for the heritage, style, reputation and durability. The
firm’s asset has been its brand loyalty, it signifies the American pride. Harley Davidson also

takes part and sponsors many events and even give free riding courses to the younger and female

riders. More so, the firm provides an open customer forum to focus group, customer surveys to

hear the customer’s view. And they use the data and input to improve on their products.

I would recommend some changes to the firm like they can change their production

process by adding value in each stage. Switch to low cost production techniques and use more of

just in time inventory to save resources. They can also target all types of people make changes in

the demographics and even the political environment situations. They also need to improve and

work on the betterment of tapping global markets. They need to retain their brand name across

the globe by targeting low income groups especially the young generation. If they do all of these

they can achieve sustainable growth locally and globally.

4. Evaluate international conditions and the company’s performance

outside of the U.S. What options are available to support Harley-Davidson’s

overseas expansion?

Harley Davidson has set up franchises in different countries across the world.

They were able to penetrate and setup their brand name. In India it became successful as

they built production plants so as to save them import duties by almost 80% when

compared to high tariff charges being imposed when exporting overseas. It was able to

meet the needs of its target market in India by providing quality products, parts and

accessories to suit the needs of the market. It was also able to lower its price which

increased its competitive advantage position. But in china it faced problems and became

unsuccessful because of the stringent government laws. Additionally, the cost of

importing was very high as when exporting 30% more was added to the cost of the each
product. More so, the Harley-Davidson competitors in China gained competitive

advantage by providing varieties and cheaper products to suits the customer’s needs. The

firm also needs to change its target market of 29-55 year olds. It is a threat to the internal

and external environment. Their focus should be more on the younger generation. The

younger crowds prefer bikes that are fast and lightweight. So the firm can adjust its

research and development department and make the changes. By targeting both the older

and younger crowds will help in generating revenues domestically and internationally.

Another suggestion would be for Harley Davidson to build a manufacturing plant in

china as it will help lower import duties and achieve their profits.
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