Competitive Strategy and Innovation at Harley-Davidson: A Presentation

This presentation provides a comprehensive analysis of Harley-Davidson's competitive strategy and innovation, examining its resources and capabilities, and how they grant the firm a competitive advantage in the motorcycle industry. It utilizes VRIO and SWOT analyses to identify strengths, weaknesses, opportunities, and threats. The presentation explores how Harley-Davidson implements its strategies effectively, exploits its key strengths, and mitigates its weaknesses. It also identifies the threats the company faces, such as aggressive competition and the rise of electric vehicles, and suggests measures to improve its performance and address current and future challenges. Furthermore, the presentation discusses the company's global strategy and acquisition strategies, as well as its aims, objectives, and mission, providing a complete overview of Harley-Davidson's strategic approach to maintain its market position.

COMPETITIVE STRATEGY
AND INNOVATION

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. 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.

HARLEY-DAVIDSON
• 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.
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. 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
• 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.

VRIO ANALYSIS
• 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. 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.

VRIO ANALYSIS
• Rareness: It include the real name of the resources within the organisation that
how are the resources are for organisation use.
• 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.

VRIO ANALYSIS
• Imitable: Imitable means that those resources which can be copied by the
competition of the organisation cannot take them easily.
• 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.

VRIO ANALYSIS
Resources Valuable Rareness Imitable Organised Competitive advantages
Financial resources Yes Yes No No Low level of competitive
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

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. 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:

CONTINUE….
• 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.

CONTINUE….
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.
• 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.