Harley-Davidson's Differentiation Strategy for International Strategic Management

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International Strategic Management
Harley-Davidson, Inc.
Harley-Davidson Company uses Harley Owners Group (H.O.G.), Harley-Davidson
Financial Services (HDFS), and Harley-Davidson Motor Company (HDMC) SBUs to
implement differentiation strategy (Harley-Davidson par. 2). This paper analyses how
Harley-Davidson, Inc. uses its strategy to attract more customers that are loyal across 90
countries.
Harley-Davidson, Inc. applies differentiation strategy to design and manufacture
unique products/services and sell them to price sensitive customers. For example, Harley-
Division started to target customers while focusing on their needs. The company develop
unique products to offer unique features against rival offerings from competing companies
markets (Farhana and Bimenyimana 25).
Herley designs products that need less maintenance. According to the case, the
company spends only 15% on marketing budget towards traditional media. For instance, it
organises for events and activities that engage customers at every level. Harley’s Chief
marketing officer (CMO) has succeeded in organizing for events in Rome Italy. The company
uses crowd-sourcing firm to co-create and test all marketing ideas (Kaleka and Morgan 28).
Such a strategy has made it possible to link with the number one seller for the period 208-
2013 (Harley-Davidson par. 2).
Harley uses differentiation strategy to achieve greater compatibility. HOD designs,
manufactures, and sells motorcycles with classic styling, superior quality, distinctive sound,
and innovative design (Tripes, Stanislav, Komarkova, Pirozek and Dvorak 332). Besides, the

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PDC division has a capability to customize unique features any motorcycle using accessories
and special parts to increase value according to customer preferences. The company uses this
strategy to target customers (Farhana and Bimenyimana 25) located in global markets such as
Latin America, Asian-Pacific, and EMEA.
Harley applies ensures that all its products have more features to meet desires of its
customers. A majority of customers like its products because they have several features. They
come back to make other purchases (Tripes, et al 334). The case shows that its customers
already have strong attachment to a company brand. This presents a valuable asset for HOG
for the entire company as well as Harvey experience to every customer (Harley-Davidson, 4).
This feature makes it possible for the company to create a sustainable competitive advantage
against other competitors. Currently, the company has manufactures six different platforms of
motorcycles; street, V-Rod, Sportster, Softail, Dyna, and Touring. It is because of this that
has made the company to remain a leader in gaining a higher market share in USA.
Consequently, the market sales have increased by 7% from Europe, the Middle east, and
Africa (EMEA) (Harley-Davidson 5).
Harley Company ensures that its differentiation strategy makes it possible to control
its procedures during manufacturing stage. For instance, within its $1 billion supply chain,
the company has more than 300 suppliers. The company ensures that all its suppliers have an
access to its facilities and internal management system it calls “Ride.” Unlike other
competitors, the company ensures that all its suppliers engage with Harley designers along all
stages of design and manufacturing. The company has also succeeded in creating a detailed
contract that explains quality management. The company applies this strategy to ensure that
suppliers provide quality materials that meet customer value (Harley-Davidson 5).
Consequently, the company has succeeded in receiving return customers.