Organizational Strategy for Harley Davidson: Resources, Capabilities, Opportunities and Threats

Running head: Organizational strategy
Organizational strategy

Organizational strategy
Table of Contents
Introduction.................................................................................................................................................3
Harley Davidson strategy............................................................................................................................3
2.(a) Resources and capabilities to compete within the motorcycle industry...............................................4
(b).Harley Davidson compare with other leading motorcycle companies....................................................6
(c).Strengths and weaknesses of Harley Davidson......................................................................................7
(d).Opportunities and threats for Harley Davidson......................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11
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Organizational strategy
Introduction
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
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Organizational strategy
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).
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