Competitive Strategy and Innovation

This report discusses the resources and capabilities of Harley-Davidson and how they grant the firm competitive advantage in the motorcycle industry. It also explores how effectively Harley Davidson's strategy is implemented and how the company exploits its key strengths while protecting itself from weaknesses. Additionally, it identifies the threats to its continuing success and provides recommendations on how the company should respond to current and future challenges.

Competitive strategy
and innovation

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
What are the resources and capabilities of Harley-Davidson, And how do they grant the
firm competitive advantage to compete in the motorcycle industry?....................................3
How effectively Harley Davidson’s strategy is implemented and how the firm exploit its
key strengths while protecting itself from its key weaknesses?.............................................6
What threats to its continuing success does Harley Davidson face, and how should it
respond to current & future challenges..................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books and journals...............................................................................................................11

INTRODUCTION
Business environment is changing continuously and it is important for an organisation
to identify the different business opportunities and form the competitive strategy where it can
bring innovation in new technology for getting the competitive advantage within the business
(Holgersson, Granstrand and Bogers,, 2018). Harley-Davidson is one of whose company
which also bring Innovation and new competitive strategy for increasing their business and
running it for a long period of time. Harley Davidson motorcycle manufacturing company
was founded in 1903. In this report discussion about the resources and capabilities of Harley
Davidson and how do company grant competitive advantage within the motorcycle industry.
In the middle of the report, there is discussion about effective implementation of the
strategies by minimising the weakness with the strength of the organisation. In the end of this
report, there will be identification of the threats which are in front of the organisation for
getting the continuous success and the challenges which organisation is facing and how can it
be reduced them.
MAIN BODY
Harley-Davidson is the leading motorcycle manufacturer in global world which was
founded in 1903. Harley Davidson is famous for its style and customised bikes that give rise
to the chopper motorcycles style. The company was founded by William as early in a small
town where he owner motorbike workshop which customise the bicycles (Johnson, 2016).
Companies operating at global level where its different type of motorcycles to number of
nations. This Company always ahead of the competitive strategy where it used to
manufacture quality products where it can easily compete within the market from its
competitors
What are the resources and capabilities of Harley-Davidson, And how do they grant the firm
competitive advantage to compete in the motorcycle industry?
There are number of resources and capabilities which organisation has two causes for
working in a competitive environment. Harley Davidson is also working within this
environment and it also requires the resources and capabilities which must be identified for
getting the competitive advantage within the market and motorbike industry (Salunke,
Weerawardena and McColl-Kennedy, 2019)VRIO analysis can be used for identification of
these resources and capabilities of the organisation which will grant company the competitive
advantage within the motorbike industry. This analysis is stated below.

VRIO analysis: this is the frameworks which is used by the different business units for
getting and identifying the resources and capabilities of the business and classify them into
the valuable, rareness, imitable and organise. According to the analysis of Harley-Davidson it
is founded that company have four main resources which are financial resources human
resources technology and supply chain. The further analysis of all these resources is stated
below.
Valuable: valuable resources which have greater important for the organisation as compared
to other sources of the firm. Context of Harley-Davidson these valuable resources are
financial resources human resources technology and supply chain of company (Rothaermel,
2016). These four are most valuable resources for the organisation which provide company a
moderate level of advantage within the market as compared to other competition.
Financial resources: financial resources of the company are the strongest and
valuable part for the organisation because Harley-Davidson follow-up proper structure of
financial resources where it take investment in the form of issuing shares and debentures as
well as from commercial banks. This is Important and valuable resource for the organisation
because of their effectiveness and lead to the organisation.
Human resources: employees of the runner also valuable for the firm because they
provide the innovation and technology within the organisation because of their effective
training and management within the also valuable for Harley-Davidson.
Technology: Technology is the most valuable resources for because it provides
number to the company for expanding its business where early use different type of motor
system and new and innovative ideas within motorbikes with the help of technology.
Supply chain: Harley has a proper supply chain management which also act as a
valuable resource for the organisation because cover various Nations on the globe which
required a specific supply chain management system it is a valuable resource for
organisation.
Rareness: It include the real name of the resources within the organisation that how are the
resources are for organisation use (Desyllas, Miozzo, Lee and Miles, 2018)

Financial resources: Financial resources are the resources for Harley-Davidson
because company have a huge number of investor as well as loyal investor which help
company in getting them with organisation.
Human resources: These resources are also therefore the organisation because Harley
Davidson in use cost on training and development of its human resources which help
company in maintaining the competitive advantage as well as productivity within the
organisation.
Technology: Technology is also a rare resource for the Harley-Davidson because
company use high level of technology in its motor parts as well as other designing of the
products which also include the innovative technology which provide the competitive
advantage to the organisation in motorbike industry.
Imitable: Imitable means that those resources which can be copied by the competition of the
organisation cannot take them easily (Hernández-Perlines, Moreno-García and Yañez-
Araque, 2016).
Human resources: human resources of Harley Davidson are those resources which
can't be imitate by its competitor because company in the high cost of training and
development on these resources as well as maintain the motivation techniques within the
organisation for retaining them for a longer period of time.
Technology: technology is also a real resource for Harley-Davidson because company
use the high level technology in its different motor parts which is impossible for its
competitors to acquire because of future investment.
Organised: these are those resources of the organisation which are properly organised or
getting the maximum competitive advantage within the market of Harley Davidson where it
is trading.
Technology: technology of Harley-Davidson is a most organised resource for the
organisation. This is because companies using the innovative ideas and techniques used in the
business it can from different strategies related to technology.
Resources Valuabl
e
Rarenes
s
Imitabl
e
Organise
d
Competitive advantages
Financial Yes Yes No No Low level of competitive

resources advantage
Human
resources
Yes Yes Yes No Moderate competitive
advantage
Technology Yes Yes Yes Yes Highly Competitive
advantage
Supply chain Yes No No No No Competitive
advantages
From the above mentioned analysis, it can be identified that there are number of
resources which help in Harley Davidson in managing its capacity as well as innovation
within the organisation. Technology is that highly competitive advantage resource which is
important for Harley-Davidson to be this is because company use separate research and
department for improving its technology and innovation by the use of different style of
motors and analysing the demands of the customer and making the customised motorbikes.
Identified that provide proper competitive advantage to Harley-Davidson in this competitive
market (Martin, Javalgi and Cavusgil, 2017).
How effectively Harley Davidson’s strategy is implemented and how the firm exploit its key
strengths while protecting itself from its key weaknesses?
Harley Davidson is a global organisation which is operating in number of nations it is
important for the organisation to properly implement it strategies where it can increase its
market share (Jae and Sup, 20180. Business strategy can be defined as a set of action plan
which is formed by the organisation to increase its market share and achieve the goals and
objectives. There are some aims, goals and objectives of the Harley Davidson. These are
mentioned below:
Aim: the main aim of the organisation is to launch different variety of the motor bikes
within the world where it can dominate in motorbike market.
Objective: the main objective of Harley Davidson is that company want to build 2
million new Harley Davidson rights in the US and grow its international business to 50% of
its annual volume by 2027.
Mission: the major mission of the organisation is to achieve 50% market sharing
customised bike 40% share within motorbike industry.

There are two types of strategy which are followed by the Harley-Davidson for
cleaning the competitive advantage within the market as well as increasing its market share.
Global strategy: Harley-Davidson is a largest maker of motorcycles and top sale of
heavyweight motorcycles. There is Different type of products where more than 30 models of
the touring and custom bikes are built by the Harley Davidson. Some of these are Diana,
softball, sportster and VRSC. This is the time for company to take its product at global level
where it cancel the range of the product in the global market and increase its shares in the
global market. Use different type of products according to the culture and behaviour of the
nation where it going to sell its product as well as the income class (Prajogo, 2016)
Acquisition: it is also famous strategy which is adopted by the Harley Davidson. It
acquires bullet Motorcycle Company which was also strategic move for the company where
it allowed the company to enter in the segment of the market which was untouched by the
company. Here company used potter strategy where low maintenance off the motor cycle will
help company in adopting the economic and environmental advantage. In 2008 company also
identify number of acquisition alignments which help company in continuous manufacturing
at low cost where single cylinder bullet blast engines were introduce (Linton and Kask,
2017).
Harley Davidson properly implemented all these strategies of the organisation. This
also helps company in increasing its market share as well as achieving its aims, objectives
and mission within the motorcycle industry. Implementing the strategy it also uses the STP
approach which enables the organisation in segmenting targeting and positioning its product
according to the needs and requirements of the market. This also helps company identify the
potential customers as well as increase its share. This can be seen in the table.

Identification of strength and weaknesses
It is important for Harley-Davidson to identify its strength and weaknesses where it
can combine them and overcome from its weaknesses by the use of the strength. For
identification of strengths and weaknesses Harley-Davidson can use the swot analysis.
SWOT analysis can be defined as a Framework which can be used by the organisation for
identifying the strengths weaknesses opportunities and threats within the internal
environment of the organisation (Bashir and Verma, 2017).
STRENGTH
 Technology and innovation is the strong factor of the organisation. Harley Davidson
can use the innovation and technology in attracting the number of customers toward
the organisation.
 Strong brand images also strength of the Harley Davidson because companies
operating for more than 150 years motorbike industry which help company in making
a strong brand image.
 Chopper motorcycle production is also a key strength of the Harley Davidson where it
is expertise in customising and chopper with motorcycle production which will help
company in managing the product according to the design.
WEAKNESS:
 The major weakness of the company is their product mix because companies dealing
in motorcycle industry where it is possible for the organisation to use designer
product mix so it have to make more focus on marketing segments.

 Limited market research is also weakness of the Harley-Davidson because company is
operating at a high level but it is difficult for organisation to supply its product in
appropriate manner to global demand. Number of countries where early is lacking like
Japan and China.
OPPORTUNITY
 Early have a great opportunity to expand especially in the developing market where
company can also use a different product mix where it can get a product
diversification strategy for increasing its market and making the alliance with
different complementary businesses.
THREATS
 Aggressive competition within the market is a major threat in front of Harley
Davidson which it can decrease the profitability level of the organisation.
 There is one more threat in front of Harley Davidson that in current market the
preference of electric vehicle is continuously increasing. Harleys providing
heavyweight motors which are impossible to convert in the electric vehicles.
Early can easily minimise its weaknesses but combining is it strength. Like the weakness
of product mix can be easily solve by the company with the help of manufacturing the
customer and chopper motorbike (Cusumano, Gawer and Yoffie, 2019). Increase the market
of the company as well as improve the product mix which directly helps company in
surviving. Company can also minimise unlimited market research strategy with the use of
technology and innovation. Company having major strength of technology and innovation
which will help company in reducing the market research problem where it can identify the
different markets by the use of tools related to Innovation and technology.

What threats to its continuing success does Harley Davidson face, and how should it respond
to current & future challenges
There are two major threats of Harley Davidson which are:
It is facing the aggressive competition within the market because there are several of
Japanese as well as foreign companies which are selling their products within the market
cheaper prices and with more effective competition strategy.
Threat which is faced by Harley Davidson is that, there is trend in the market regarding
electric vehicles which affecting the performance of Harley Davidson because company
reducing heavy motor vehicles and which are known for their heavy duty engine but electric
vehicles does not have this quality which can impact negatively on the performance and
profitability of Harley Davidson (Semuel, Siagian and Octavia, 2017).
Measures to improve current and future challenges
Their number of measures which can be up to buy Harley Davidson for improving its
performance within the market as well as dealing with the future and current challenges:

 Here company can broaden the product mix through the innovation and
diversification of its products. This will help company in increasing the market share
as well as giving maximum advantage within the market.
 Company must adopt the different globalisation strategies specially for those markets
which are developing.
 Harley can also develop and expand its supply chain network where it can expand it
to the global level. This will help company in maintaining the effective supply within
those markets where the demand is higher in comparison to market of America.
Various markets of United Emirates and Asian countries which have huge number of
demand for Harley Davidsons (Prajogo and Oke, 2016).
 Company must also adopt the innovation within the organisation which is related to
environmental friendly techniques where it can promote its brand in an environmental
friendly way. Where those peoples can be attracted who are shifting towards the
environment protection products and motorbikes.
CONCLUSION
It can be concluded from the above mentioned report that there are various resources
which are important for Harley Davidson. And for maintenance of them it is important for the
organisation to perform specific competitive strategy where it can easily identify its strength
and weaknesses and combine them to get the maximum advantage within this global market.
Here company can also use number of its threats in identifying its problems and take the
selective measures which will help it in reducing these negative impacts.

REFERENCES
Books and journals
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Holgersson, M., Granstrand, O. and Bogers, M., 2018. The evolution of intellectual property
strategy in innovation ecosystems: Uncovering complementary and substitute appropriability
regimes. Long Range Planning, 51(2), pp.303-319.
Salunke, S., Weerawardena, J. and McColl-Kennedy, J.R., 2019. The central role of
knowledge integration capability in service innovation-based competitive strategy. Industrial
Marketing Management, 76, pp.144-156.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Desyllas, P., Miozzo, M., Lee, H.F. and Miles, I., 2018. Capturing value from innovation in
knowledge‐intensive business service firms: the role of competitive strategy. British Journal
of Management, 29(4), pp.769-795.
Hernández-Perlines, F., Moreno-García, J. and Yañez-Araque, B., 2016. The mediating role
of competitive strategy in international entrepreneurial orientation. Journal of Business
Research, 69(11), pp.5383-5389.
Martin, S.L., Javalgi, R.G. and Cavusgil, E., 2017. Marketing capabilities, positional
advantage, and performance of born global firms: Contingent effect of ambidextrous
innovation. International business review, 26(3), pp.527-543.
Jae, M. and Sup, J., 2018. Competitive strategy for Paradigm shift in the era of the Fourth
Industrial Revolution: Focusing on business Model Innovation. Indian Journal of Public
Health Research & Development, 9(8), pp.736-741.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment
in delivering business performance. International journal of production Economics, 171,
pp.241-249.
Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive
strategy for high performance. Journal of Business Research, 70, pp.168-176.
Bashir, M. and Verma, R., 2017. Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), p.7.
Cusumano, M.A., Gawer, A. and Yoffie, D.B., 2019. The business of platforms: Strategy in
the age of digital competition, innovation, and power. New York, NY: HarperCollins.
Prajogo, D.I. and Oke, A., 2016. Human capital, service innovation advantage, and business
performance. International Journal of Operations & Production Management.
Semuel, H., Siagian, H. and Octavia, S., 2017. The effect of leadership and innovation on
differentiation strategy and company performance. Procedia-Social and Behavioral
Sciences, 237, pp.1152-1159.