The primary aim of this task is to outline and explain the strategies, resources and capabilities of Harley Davidson. Harley Davidson is an American motorcycle company that was incorporated in 1903 in Wisconsin. SWOT analysis and porter five forces analysis have also been explained in the task. It discusses that how the company uses resources and capabilities to overcome on the ample of challenges and risks in the global market.
Harley Davidson is one of the biggest brands in the marketplace. Along with this the company is looking for paths towards the improvement and attainment of their share in the marketplace. The main aim of the company is to analyze and evaluate the customer segments for maximizing the profitability. Along with this, the firm wants to provide unique and effective comment on value proposition of the firm for each and every segment in the marketplace.
Harley Davidson strategy
It is noted that various strategies are used by Harley Davidson Company while initiating the business activities and operations globally (Baroto, Abdullah and Wan, 2012). One of the significant strategies that used by the firm is porter five forces analysis that is discussed below.
Internal rivalries: It is one of the significant and effective forces that could affect the performance and productivity of the company adversely. The competitors of the company include Yamha, Suzuki, Honda and some other companies. In today’s era, the firm is increasing and enhancing its revenue and profitability across the world. It has been found that Harley Davidson has become one of the biggest leaders in the marketplace and along with this the firm is also highly relying on its brand. Furthermore, the organization is trying to maintain high and strong base of the customers around the world. In this way, the firm is becoming the major internal rivalry for some other companies with its enhanced and improved strategies in the vehicle products (Corey and Millage, 2014).
Potential entrants: It is the biggest force for the company that puts direct impact on the outcomes and productivity. There is high and strong barriers of entry in the international market and it requires ample of capital and investment for the industry. There are various competitors including Yamha, Suzuki, and Royal Enfield that may influence the growth of the firm. It is noted that whole business activities and operations of Harley Davidson is dependent on the high reputation and image to gain competitive benefits in the competitive market. There are some scale segments of the company that introduces the custom made vehicles in the marketplace and it also generates the interest of the people (Shankar, Carpenter and Farley, 2012).
Substitutes: The heavy weight motorcycles are the luxury items that generate the vast majority and enhance in the few close substitutes with serious and effective impact in the global market. Yamha, Honda and Suzuki are the main competitors who are producing same products as well Harley Davidson. The substitute’s products affect the financial position of the company thus; Harley Davidson needs to focus on the plans, strategies and policies of the competitors. The organization also needs to make unique and effective policies and plans to beat the competitors in the international market (Omsa, Abdullah and Jamali, 2017).
Bargaining power of suppliers: It is significant force of porter five forces analysis that determines and analyzes the effect of suppliers in the industry. The bargaining power of supplier is weak in the automobile industry. Along with this, moderate size of suppliers permits them to have an impact on the firm but not so high but it can be moderate. The suppliers play a significant role to supply the products among the customers in the international market (Grant, 2016).
Bargaining power of buyers: The bargaining power is high and strong in the hands of buyers. The customers play a significant role to increase and enhance the sale of the company effectively and efficiently. The low switching costs for the customers makes it quite easy for them to switch and choose to substitutes that are available in the marketplace. So if the company increases the prices of the products then the customers are going to ready to switch other products easily because they have sufficient knowledge to analyze and judge the better option for them so they can make effective and unique decisions in this regard (Adamkasi, 2017).
The porter five forces strategy is implemented by the firm to overcome the competitors and to maximize the outputs in the global market (David, 2011).
(Source: com/business/porters-five-forces)”>https://brainmass.com/business/porters-five-forces)
2. (a) Resources and capabilities to compete within the motorcycle industry
Resources and capabilities are the main source to compete with rivalries in the international market. Harley Davidson has a formal and unique structure that works for the firm effectively and efficiently. Along with this, it has expert teams who assist and guide the workers for performing roles and responsibilities in a hassle free manner. Decentralized structure is followed by the firm to make a strong and unique image in the minds of the customers. The programs that used by the company are help to track inventory and supply chain management. In addition, innovative and advanced technologies are used by the firm to uplift the profits and outputs. The company has unique distribution supplier network that renders important information and facts about supply and demand within the firm. The resources and capabilities include following:
Physical resources: It has been found that Harley Davidson provides a basis for tracking and handling the physical resources effectively. The company’s plants are well maintained and streamlined that is core and unique resource for Harley Davidson (Wirtz et al, 2013).
Technological resources: Harley Davidson uses various technological resources including brand name patents, copyrights and trademarks that protect its brand name and reputation. It is one of the significant resources that is used by the company in the workplace.
Human resources/capital: Trust, managerial capabilities, knowledge and organizational culture are dynamic and effective valuable human resources of the firm. The organizational culture provides competitive benefits to Harley Davidson. The employees involved are passionate and effective about the brand and this adds invisible value and beliefs to the firm (Sheth, 2017).
Innovation resources: The human resources for Harley Davidson include employee, suppliers and management. These people are able to know the potential and business. The innovation resources help to create and stay in the niche market and it also helps in creating new and innovative boundaries for innovative ideas (Das and Ara, 2014).
Reputational resources: The reputational resources include brand name, reputation, and conception of product. All these resources help in keeping loyal customers in the global market.
Capabilities: The capabilities include manufacturing, distribution, strategic options, and integrated technological resources. The company ensures that all the activities and processes throughout its value chain are integrated and associated using web based SMS systems, reports and barcodes that enable its JIT inventory flow. This permits production to flow smoothly and effectively. Along with this, Harley Davidson manufacturing plants are capable of producing and introducing many different models and reducing the cost across the world. Aside this, the company has the capability to reduce the lead times and ensure pull delivery the contracts and private fleet of trucks with distribution suppliers (Agnihotri, 2013).
(b).Harley Davidson compare with other leading motorcycle companies
The other motors companies include Yamha, Suzuki and Enfield that play a significant role in today’s competitive world. A large number of motorcycles are produced by these companies. Let’s talk about the Honda motorcycle; it is one of the leading and biggest motorcycle producers in the world. It is also known as leading supplier of the automobile industry. A well developed and unique team is maintained by the company while conducting business activities and operations in the marketplace. This successfully helps in creating the capability of wide range of products and services. Honda and Harley Davidson have similar resources and capabilities and these resources were built and exploited with respect to its strengths and significance so as it also helps in gaining competitive benefits. Honda handled to develop the use of resources and capabilities in the form of perfection and it is more advanced with terms of technology so as it is not restricted with the minimum budget with minimum amount of capital. In terms of finances, the company is limited and Honda consists the financial strengths with using high capability to handle with strong and heavy investments. Honda monitors on the modern equipments and plants where as Harley Davidson handles few plants. In addition, the location of Harley Davidson is interconnected in Brazil, U.S, and on the other hand, Honda manages the low cost markets and invests in the plants across the world. Honda focuses on the innovative and advanced technologies whereas Davidson is behind the policies and strategies of Honda. There is unique and effective brand image and reputation of Harley Davidson whereas Honda focuses on the suitable bikes with dynamic reputation and brand image (Singh and Sonnenburg, 2012).
In respect to capabilities, Honda was far ahead of HD and with respect to innovation, low cost production and attractive and unique design of motorcycles. Along with this, Honda created the unique and excellent product development and low cost manufacturing capabilities. When compared to Harley Davidson and Honda’s resources and capabilities, the product development and design is weak and on the other hand, Honda focuses on the innovation and design. Harley Davidson is weak in terms of research and development whereas Honda focuses on the strong research and development so as it meets with the fast cycle and innovative new product development. Along with this, the marketing of Harley Davidson handles with excellent and effective reputation and brand management in regards to dynamic customer service and on the other side Honda meets the customer trends and demands effectively and successfully. Harley Davidson possess the huge and high experience in the automobile industry but Honda can take only first mover advantage. Furthermore, Harley is not able to acquire high amount of cost benefits over Honda. Harley Davidson renders unique and styling products and it is the primary and significant part in the American culture. Apart from this, the firm is able to focus on the plans, strategies and policies of the competitors in the international market (Maehle and Supphellen, 2011).
(c).Strengths and weaknesses of Harley Davidson
Harley Davison is able to enhance and sustain the competitive position with certain attributes and strategies such as:
The expansion and development internationally needs to capture the company with respect to global market and the company is required to reinvest its profitability from North America into the marketing overseas (Alkhafaj and Nelson, 2013). Along with this, the firm can manage and deal with large number of scales to bring the more target audience for the vehicles and to attain high economy of scale. Along with this, the demand and need of the products is also high so there is the path that could go with bringing and introducing the new and innovative products for the firm. New focus and innovative ways of research and development will also help to attain the competitive benefits (Marchi, Giachetti and De Gennaro, 2011). Along with this, the company meets the needs and requirements of the customers with regard to technology and art therefore, there would be proper analysis of attainment with respect to the partnering automobile segments such as Ford and General motors. This also helps the firm to maintain its brand image and reputation and also it increases the development and expansion of the models by the global market. SWOT analysis is one of the biggest and unique strategies for the firm that helps Harley Davidson to cope up with rivalries in the competitive market. The downsizing and restructuring handles with the less overheads and it also needs to become quicker in terms of the company (Sarkar, 2011). The company increases sales and revenue by using SWOT strategies in the international market. It also helps to attain the top management in a hassle free manner so as it will enhance and increase no layoff approach. Apart from this, the organization also focuses on the differentiation strategy to differentiate its products from the competitors in the global market (Hartley and Claycomb, 2013). The SWOT analysis is done by the company to overcome the competitors and to maximize the outputs. The strengths and weaknesses of Harley Davidson have been discussed below.
Strengths
Weaknesses
(d).Opportunities and threats for Harley Davidson
The threats affect the success and growth of the firm adversely. Harley Davidson is influenced by the ample of threats that could exist in the international market. The SWOT analysis helps the company to identify and analyze the opportunities and threats for Harley Davidson to meet the long term requirements and needs of the customers. SWOT analysis identifies and evaluates the external strategic factors the can facilitate business growth and expansion. The organization needs to make unique and effective strategies to overcome and reduce threats and challenges (Greenspan, 2017). The opportunities and threats for Harley Davidson are discussed below.
Opportunities
Threats
Conclusion
On the above mentioned analysis it has been concluded that Harley Davidson is well known for its strong and effective brand image in the marketplace. The company has spent an ample of amounts in research and development so as it is boosting and increasing the financial performance in today’s competitive world. The paper also analyzes the strategy, resources and capabilities that can help Harley Davidson to attain desired mission and vision. Apart from this, it also explains the porter five forces analysis that affects the progress and targets of the organization adversely. On the other hand, it discusses the strengths, weaknesses, opportunities and threats that help the firm to capture the entire market and to beat the competitors in the international market.
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