Case Analysis of Transformation Strategies at Harley Davidson

This case study analyzes the transformation of Harley Davidson, examining its journey from a well-known brand to facing competition from Kawasaki, Honda, and Yamaha. It applies Michael Porter's model, highlighting the impact of new entrants and strategic responses such as JIT inventory, cost reduction, and marketing campaigns. The analysis diagnoses challenges like a focus on short-term profits, delayed responses to competition, and high inventory levels. The prescription includes recommendations for manufacturing core products, exclusive design, customization, strong decision-making teams, effective marketing strategies, targeting a broader customer base, product innovation, positive advertising, and email marketing. The evaluation suggests potential improvements in product specialization, design, customization, decision-making, marketing, customer targeting, and innovation. The analysis provides a comprehensive overview of the company's challenges and potential strategies for future success.

Running head: CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
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CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
Description
As per the comprehensive case analysis of Harley Davidson, it is indeed the remarkable
name in the world of automotive companies which, named after William Harley and Walter and
Arthur Davidson and was founded 1903. The case analysis discusses that, Harley Davidson is a
well-known brand yet when they had to face competition from Kawasaki, Honda and Yamaha
which has brought them to bankruptcy. According to Michael Porter’s model Harley Davidson
was impacted mostly by the new entrants and this was overlooked by Harley Davidson motor
company initially. Its current capability allows short pile and downfall in local share of market
recently. Company’s average customers are 35 years old and above. This company was in peak
demand with the launch of Hollywood movie Easy Rider in 1969 which provokes the motorcycle
demand in public. As a transformation Harleys implemented JIT inventory which efficiently
saves cost and the primary goal is supposed to obtain product inventory out the supply channels,
the process has worked for scrap management and size minimization of batches resulting in
selling of 35000 bikes from 53000 bikes to get equal points. The production was entirely
changed and the equilibrium point was slashed down by 50%. Harley Davidson did not believed
in advertisements like other companies and to keep lowering their advertising cost, to create
brand equity and awareness they began “Super Ride” campaign attracting 40,000 customers.
They also put efforts with American government and asked for enhancement of import tax from
4% to 40%, which elaborates strategic ability. As it is not pocket friendly and an aspiring brand,
people keep it for a second option which is not so profitable for the company.

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CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
Diagnosis
The values of Harley-Davidson are the base on how the company operates, they are
designed for workers for smooth running of the industry and the base of its moral ethics and
integrity promotes intellectual enthusiasm to work. It represents an organisation for its open
ended culture and encourages its employees to connect with the vision of the company and offers
liberty to put forward their views. Harley Davidson have been much lucrative industry at the
time of First and Second World War, whereas, it changed in 1970's. Later on, to the detailed
summary and analysis, the company structured the underlying list which was essentially focusing
to issues experienced before:
 Top managers focused mainly on instant profits and not on long term benefits.
 The corporate level managers never responded on serious notes or else would provide
autonomy for everything they have made.
 Higher inventories of parts squandered money and also mitigated productiveness.
 Believing in rapid solutions for problems, like disowning old systems and state-of-art
machines for gearing up productiveness.
 Raised equilibrium levels which let this company to stay with unseen flexibilities of
market.
 Response from corporate levels was delayed towards threat of alien competitions.

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CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
Prescription
After analyzing the comprehensive case analysis and the HRM perspectives I have
arrived to a certain knowledge and understanding to recommend following initiatives or actions
to be taken by Harley Davidson to meet its objects and adhere to success and sustainability.
 The Company should effectively emphasize in manufacturing bulky motor-cycle and
make it as a core competitive segment.
 The company should go for exclusive designing and body fabricating in manufacturing
process.
 The company may initiate customization regarding specification of products to set the
benchmark for best style and quality.
 The company should have proper decision making team for effective and frequent
decision making process.
 A company with strong marketing team can abide strong marketing strategies for better
market understanding and customer base.
 The company only focuses on the male customers of aged category which is 35 and
above and that restricts it from reaching to the mass because massive customer base in
today is youth who have the zeal to buy luxurious bikes as Harley Davidson is. So, it
requires for the company to acquire whole of the market its prospective area of profit.
 The company should keep renovating, as the days are gone when a brand name was
enough to get the product sold out. Now the market has dense competitors which means
the company has to keep renovate to sustain in the market as a market lead.
 The company should not be the symbol of any discretionary products or a part of
advertisements those may put the image of the company negatively.

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CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
 The company should also start E mail marketing that may provide them with proper
customer database and how intensely they buy the product and also to keep good cliental
relationships.
 The company can go for CSR activities which attracts the society as a stakeholder and
keeps a good impression on the existing customers and often encourages prospects to turn
into customers.
Evaluation
From the above recommendations, prospective evaluations can be drawn for the potential
future scopes of improvement and sustainability of Harley Davidson.
 The company is specialized in making heavy steel motor bikes which if done as per the
customer demands can be successful for the company.
 If the company goes for exclusive designing and fabricating then it would stand
distinctive for any customer to buy it proudly as the end thing is to provide the utmost
satisfaction to customers to hold them back as brand loyal customers.
 Very few companies go for customization of products, especially in automotive, but those
does that, have strong customer base and huge demands for products.
 Decision making process plays an important role in any organization. A strong decision
making team can take effective decisions when the company need it the most. Therefore,
to have a strong decision making team and effective decision makers is like having asset
to the company.
 Besides, having strong HR management team and effective decision makers, the
company’s 50% revenue is generated by the marketing team, as because, they do the first
task of market study and competitive analysis. For example, to get a segmented market it

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CASE ANALYSIS OF TRANSFORMATION AT HARLEY DAVIDSON
is important to have a dedicated marketing team to work upon this so that when the
company approaches a set of customers on their specific geographical base, they may get
the maximum output. Therefore, it seems recommending for a marketing team would
work effectively for the company if it goes for geographical expansion or targeting niche
markets.
 Targeting market for the young generation which has a fresh demand for the luxurious
vehicles are susceptible to buy Harley Davidson motor bikes, as this generation values
fashion and status over money. So shifting targets from only the aged male stakeholders
and embracing the young generation to make a wider horizon of revenue and targets.
 Renovations in products is something that interests the customers and value a company.
The company should keep on innovating features to let the customers know that company
is providing best and this recommendation if followed by the company then it would be
profitable for them to stay identified in the product life cycle.
 Next suggestion is to go for positive advertisements as to increase the customer
preference for the brand and to have a positive brand image in customer’s mind. This
creates to have a positivity for the brand and will act as the pull strategy towards
customers.
 Another important recommendation is to go for email marketing so as to keep the record
of customer database. While evaluating it seems to be positive because it is easy to keep
reminding customers about company offers and other availabilities.
All the recommendations seems positive and beneficial for the company except one that is to be
the CSR activities, it is company’s will and budget if they want to go for such social works.