BUS300: Harley-Davidson's Strategic Analysis and Recommendations

This report provides a comprehensive analysis of Harley-Davidson's organizational strategy, examining its marketing approaches, resources, and competitive position within the motorcycle industry. The report delves into Harley-Davidson's successful strategies, including customization, its extensive dealership network, and the 'Learn to Ride' program. It explores the company's resources and capabilities, comparing them with competitors like Honda, and highlights the importance of brand image and customer loyalty. The report also examines the application of Six Sigma, Porter's five forces, and value chain models to understand Harley-Davidson's strengths, weaknesses, and competitive advantages. It discusses how the company exploits its key strengths, protects itself from weaknesses, and responds to potential threats in the market, offering a detailed overview of the factors contributing to Harley-Davidson's enduring success.

Influencing Organisational Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
1 Harley-Davidson’s strategy how it has been successful.....................................................4
2 (a) Resources and capabilities are needed to compete within the motorcycle industry.....6
Six sigma strategy: ................................................................................................................8
2 (b) Harley-Davidson compare with other leading motorcycle companies in the context of its
resources and capabilities ......................................................................................................9
Porter's five force model: ....................................................................................................12
3 Harley’s strategy exploit its key strengths while protecting itself from its key weaknesses 13
Porter’s value chain model: .................................................................................................15
4 Threats in front of Harley-Davidson and how it is responded : ......................................15
CONCLUSION .............................................................................................................................19
REFERENCES................................................................................................................................1

Illustration Index
Illustration 1: Marketing strategy.....................................................................................................5
Illustration 2: Resources and capabilities........................................................................................7
Illustration 3: Six sigma...................................................................................................................9
Illustration 4: Porter's five force analysis......................................................................................12
Illustration 5: Value chain analysis................................................................................................15
Illustration 6: Competitive analysis...............................................................................................18
Illustration 7: VRIO model............................................................................................................18

INTRODUCTION
In order to define the strategies of Harley Davidson, it is necessary to understand the
strengths and weaknesses of its Harley-Davidson. It is an American motorcycle manufacturer.
There are different market strategies which are using by Harley Davidson to grab more attraction
of customers and maintain the customer base. Harley-Davidson is using marketing strategies in
the best way and it is also gaining success in competitive market. Furthermore, it also requires
different resources and capabilities to compete with its competitors. There are various
competitors of this Harley-Davidson and the biggest one is Honda. This report also include the
different similarities and dissimilarities between both of these companies. According to this
report, resources and capabilities of these both companies are generally opposite as strengths of
the Harley Davidson are the weaknesses of HONDA. Other competitors are triumph, Yamaha
and Kawasaki. The best strength of this Harley-Davidson is that it is providing the facility of
customization to their customer and it also conducting different programs to give knowledge
about the bikes and instructions about how to ride. In addition to this, Harley-Davidson do not
have large number of markets and customers. It only focuses on targeted customers and markets.
It is continuously trying to keep maintain the potential level of their existing customers. The
strategies of Harley Davidson has been successful because it focuses on the satisfaction level of
customers rather than launching new motorbikes(Ochillo, Van Teijlingen and Hind, 2017).
MAIN BODY
1 Harley-Davidson’s strategy how it has been successful
Marketing strategies plays an important role in every organisation. Thorough these strategies
investors can look at the Harley-Davidson's background and its potential in the market. There are
different market strategies of Harley-Davidson which can be understand by following diagrams :

Whenever we think about the motorcycle the first name which came in mind is Harley-Davidson. It is the
pioneer in motorcycle industry. Generally strategies of Harley-Davidson is focused on giving a
personalized experience to their consumers.
Customization : Harley-Davidson is providing customization to their existing customers. No other
companies in motorcycle industries are furnishing this type of facilities to their customers. Furthermore,
in the customization, they provide to modify the colour, design, wheels, racks, seats, backrests, exhausts
and intakes(Wickert, Vaccaro and Cornelissen, 2017).
Large dealership network : There is large number of dealership which are located in different areas
such as US and Europe. Harley-Davidson has established a huge number of dealership outlets globally.
Lately, Harley-Davidson is focusing on the expanding its dealership across Asia- pacific market as well.
“Learn to ride program” : Harley-Davidson runs learn to ride program in which they provide different
courses to new riders with expert guidance and instructions. This is done through the help of Harley-
Davidson riding academy. Consumers of the Harley-Davidson can also enrol in its jump-start program.
Whey they learn and experience riding a real Harley-Davidson motorcycle(Ochillo, Van Teijlingen
and Hind, 2017).
Targeting a variety of consumers : Generally the target customers of the Harley-Davidson are the men
over the age of 35. Harley-Davidson provide variety of gears and apparel to its customers to enhance
Illustration 1: Marketing strategy
Source : Marketing strategy, 2016

theCOMPETITIVE ANALYSIS : experience. But now this Harley-Davidson is focusing on the young
adults and women as well(Pedersen, Gwozdz and Hvass, 2018).
Events for Harley owners : Harley-Davidson has organised group for Harley motorbikes to keep the
spirit alive. Apart from this, Harley-Davidson conduct different types of programmes as well for this it
put a great deal of efforts in their marketing strategy.
Reasons of being successful :
The key of success of the strategies is a tightly centred upon Harley's resources such as its
image and brand. Thus, Harley has centred upon the respective section where its conventional
designs and brand image can be most impressive, and avoid investments in technology and ultra
new designs. Furthermore, Harley has not ignored its cost position as a low-volume
manufacturer Harley is at a leading discriminate to Honda, Yamaha, and others. It has kept costs
low through element standardization, putting R&D low, paradigm upon the applications of past
times, attempting escaped promotional material as a secondary to costly media advertising(Volet,
Lawrence and Dodds, 2017). Acknowledging its functions as a lifestyle product, Harley has
reinforced discrimination not just into its trade goods but into the organization as a whole and all
its kinship with its customers. Look at the determination between workers and directors with
Harley possessor and the ordinary values that tie-in the organization and its customers.
In marketing strategy, Harley-Davidson also consider the marketing mix factor. It
includes place, product, promotion and price as well. In the case of Harley-Davidson’s marketing
mix, concerns about promoting and strengthening the brand are effectively addressed. Even
though the Harley-Davidson has increased its advertising efforts, its marketing mix remains
practically the same. Through this marketing mix, Harley-Davidson competes well in the
domestic and global motorcycle markets. Products of the Harley-Davidson are motorcycles,
engines, parts and accessories, collection or motor clothes merchandise(Ochillo, Van Teijlingen
and Hind, 2017). .
HR. analysis :
It is also important factor to be analysed. To analyse the capabilities of human resources are essential to
get maximum efforts of employees as they can put to accomplish the task. This analysis will help the
Harley-Davidson to resolve the problems occurs among different employees. It includes various stages to
evaluation such as first id to assigned the functions and task then collect the information regarding to the
task, develop the functional areas and last is to recommend and councils.

Finance analysis
It helps in analyse the financial requirements. Financial resources are as important as human
resources. Harley-Davidson will not achieve success if there is no proper arrangements of
financial prospects. What amount of funding company requires and in which area organisation
have to invest is analysed by financial analysis. It also explained the different sources of funding
which can be categorized into two parts such as equity and debts.
2 (a) Resources and capabilities are needed to compete within the motorcycle industry
Resources and capabilities are core factor for any industry to compete with its competitors and
maintain its position in the market. Mostly these factors contains different divisions such as :
Illustration 2: HR analytics
Source : (HR analytics , 2016)

Capabilities generally consider technology, design, purchasing power and manufacturing. In technology,
Harley-Davidson expend of its revenue on the research and development program of only 179 million.
Harley-Davidson gives traditional design but the customization opportunities are on their higher level
which can not provide by other companies in motorcycle industries. Resources and capabilities include
four different aspects such as superfluous strength, key strengths, key weaknesses and zone of
irrelevance. Key strengths are brand and consumer loyalty, distribution, customized design and material
as required. While key weaknesses are manufacturing and research and development which include
product development and international exposure. Public relationship is refers as superfluous strength.
Harley-Davidson has a huge network of its dealership channels. Hence, Harley-Davidson establish a
university to enhance dealer competencies(Ochillo, Van Teijlingen and Hind, 2017). . Apart from this
other capabilities of Harley-Davidson are integrated technological resources, unique tactics of employees
and manufacturing. Capabilities and resources are potential for sustainable competitive advantages. For
this Harley-Davidson has to make different strategies and develop the implications of strategy in relation
to strengths and weaknesses. Harley-Davidson also appraise the resources of the firm in term of relative
strength and strategic importance. Identify the resources and capabilities of the firm than explore the link
between both factors. Resources can be tangible or intangible. Tangible sources are financial and
Illustration 3: Resources and capabilities
Source : Resources and capabilities, 2015

physical. Intangible resources are technology, reputation and culture. Capabilities can be classified into
different parts such as corporate functions, management informations, research and development,
operations, product design, marketing and sales or distribution. Corporate functions include Strategic
management of multiple businesses, Financial control, Strategic innovation, Acquisition management,
Multi divisional coordination, International management, Management information include
Comprehensive, integrated MIS network linked to managerial decision making. Research and
development include Research, Fast-cycle new product development, Innovative new product
development. Operations Efficiency in volume manufacturing, Continuous improvements in operations,
Flexibility and speed of response(Ochillo, Van Teijlingen and Hind, 2017). . Product design include
Design capability, Promoting reputation for quality, Brand management, Responsiveness to market
trends. Sales and distribution include Effective sales promotion and execution, Speed of distribution,
Quality and effectiveness of customer service, Efficiency and speed of order processing. Rather, then
these, capabilities can be classified into various aspects such as cross functional capabilities, broad
functional capabilities, activity related, specialized and single task capabilities. Cross functional
capabilities as such new product development, customer support and quality management capability.
Broad functional capabilities include operational, research and development, MIS, marketing or sales and
people management capabilities. Activity related capabilities such as manufacturing, material
management, process engineering, product engineering and test engineering capabilities. Specialized
capabilities are related to manufacturing only which include printed circuit board assembly, Telset and
system assembly. Single task capabilities are related to PCB assembly only such as automated trough hole
component insertion, wave soldering, manual inspections and surface mounting of components. The
process of putting resource and capabilities to work is accomplished through some stages such as
fundamental stage is to identify the key capabilities and resources, then appraising them which consider
assessing importance and relative strengths and the last is to develop strategy implications. Capabilities
are depends on the resources of the Harley-Davidson. It can be develop through product sequencing as
well(Wickert, Vaccaro and Cornelissen, 2017).
Six sigma strategy:
Six Sigma at galore businesses merely refers a measure of attribute that endeavour for
close flawlessness. It is a trained, data-driven formulation and epistemology for get rid of
imperfections(Clifton, 2017). The primal goal of the Six Sigma epistemology is the execution of
a measurement-based plan of action that centring on operative betterment and fluctuation
decrease through the application. This is completed through the utilization of two other sub
methods of Six Sigma such as DMAIC and DMADV.

The focus elements in six sigma models are clients, process and personnel. First factor in
six sigmas is senior management involvement which consider the selecting of the project,
reviewing, Approving, resolving and recognizing. Another significant aspect that must be
considered while choosing a Six Sigma project is the operative constancy of the process. After
developing the six sigma projects next step is to select the project teams(Clifton, 2017). Many
establishments discover success by picking a project leader who fit in to the operational process
being amended and has a pale in that plan of action.
Harley Davison's is using six sigma approaches because it is one of the most data driven
approach. It assists to increase the customer satisfaction level and loyalties. Apart from this, it
helps in making a framework of time management though which Harley-Davidson can reduce
the cycle of time.
2 (b) Harley-Davidson compare with other leading motorcycle companies in the context of its resources
and capabilities
Comparison between Harley Davidson and Honda in the context of resources and responsibilities can be
understand through these tables :
This table is showing the resources and capabilities of HONDA'S :
Superfluous Strength
 Public relationship
Key strengths
 Product diversification
Illustration 4: Six sigma
Source : (Six sigma, 2015)

 International exposure
 Manufacturing
 Product development
Zone of irrelevance Key weaknesses
 Brand and customer loyalty
 Distribution
 Material as needed
 Customized design
This table is showing the resources and capabilities of Harley Davidson :
Superfluous Strength
 Public relationship
Key strengths
 Brand and customer loyalty
 Distribution
 Material as needed
 Customized design
Zone of irrelevance Key weaknesses
 Manufacturing
 Product development
 International exposure
 Research and development(Ochillo,
Van Teijlingen and Hind, 2017).
HARLEY DAVIDSON HONDA
R&D Small R&D plan. Deficiency
of advanced technology as no
utilization of overhead shaft,
multivalve cylinders and so on.
Research and development
expenses are greater than
Harley David son's revenue. It
is Leading brand in automotive
technology.

Plan Principally conventional
design features of this Harley-
Davidson and it is Leader in
customization.
History of advanced design.
Capable to stand-off upon
broad range of motorcycle
models, plus auto expertness.
Specialize designing studios in
various countries.
Manufacture The manufacture scale is small
as it produces less than 300000
bikes in a year.
HONDA produce approx 3 m
bikes in a year which offers
huge potentiality for scale of
economies and advanced
manufacturing technology.
Distribution Powerful trader network in US
while anaemic elsewhere.
Global and international dealer
network.
Brand Matchless pictures in
heavyweight bikes(Ochillo,
Van Teijlingen and Hind,
2017).
Muscular honours for quality,
execution, and reliability.
Marketing Harley brand corroborated
chiefly by publicity, support
and media events rather than
advertisement.
Honda brand planned by
advertising, engagement in
racing, and by the presence of
Honda products (from
lawnmowers to luxury cars).
Customer support Level of customer involvement
in owners’ group, charity
support etc. that is unrivalled
in the industry
Restricted to trader services.
Rising markets and enlargement foreign can be a big opportunity for Harley Davidson.
Merchandise variegation and services enlargement can raise its business
and Spread out demographics can be a mode to grow business(Salehzadeh and et.al., 2017).