Effectiveness of Harley-Davidson's Past Strategy: A Case Study

This case study analyzes the effectiveness of Harley-Davidson's past strategies, focusing on its strengths, weaknesses, and strategic initiatives. The analysis examines the company's efforts to rework production capabilities, expand market share, and broaden its offerings beyond motorcycles. Key strengths such as brand legacy, traditional engine design, and customer loyalty are contrasted with weaknesses including international market share and economies of scale. The study evaluates the impact of these factors on Harley-Davidson's performance, including its dealership network and non-motorcycle revenue streams. References to academic sources and industry reports provide context and support the analysis of the company's strategic decisions and outcomes.

STRENGTHS,
WEAKNESSES &
STRATEGY
1
 Using key strengths against key
weaknesses
 Effectiveness of its past strategy
BY RAY GOH AND JERRY TUN

2
EFFECTIVENESS
OF ITS PAST
STRATEGY:
1.) Rework
production capability
• In 1982, the first year after the “MAN”
system was introduced, Harley saved over
US$20 million (Field, 2001).
• Company set up three manufacturing
factors situated in York, Mulwaukee and
Kansas City (Grant, 2015).
• Adopted Collaborative quality management
process (Grant, 2015).

3
EFFECTIVENESS
OF ITS PAST
STRATEGY:
2.) Expand Market
share
3.) EXPAND NON-
MOTORCYCLE
OFFERINGS
• 2.) Brand strategy linked with creation of dealers
and stores.
• DEALERSHIP:1.498 across world, 698 in United
States , Europe with more than 5000 and then at last
Asia with 276 stores (Grant, 2015).
3.) Total revenue generated from non-motor cycle was 28% of
Harley’s total revenue in 2014
• focused on introducing “non-traditional” dealerships retail
outlets (Grant, 2015).

4
EFFECTIVENESS
OF ITS PAST
STRATEGY:
4.) BRAND LEGACY
&
REINFORCEMENT
5.) EXPAND
CUSTOMER BASE
4.) Enhanced blue collar youngsters to
middle aged customers (Morgan, 2020).
5.) outreach such as young adults, women, African
Americans and also Hispanics. The overall sales on
international platform enhanced by more than 5% and
accounted for more than 36%of total retail Harley
Davidson with its deals in EMEA, Asia Pacific and also
American regions (Coutinho,Mesquita and Muylder,
2018).

5
EFFECTIVENESS OF
ITS PAST STRATEGY:
Harley Davidson past strategy :
Weakness:
• Research and development
Strength:
• Brand: Traditional engine and designing (McColl-
Kennedy et al., 2015).
• Product differentiation: “Project Rushmore
motorcycles”
• Customer experience and loyalty: Branded
accessories and customized the bikes (Grant, 2015).

6
EFFECTIVENESS OF ITS
PAST STRATEGY:
Harley Davidson past strategy :
Weakness:
• International Market share
Strength:
• Dealerships and licensees: Maintained dealer
relations.
• Created performance guidelines for dealers
(Harley-davidson.com, 2020).
•

7
EFFECTIVENESS OF ITS
PAST STRATEGY:
Harley Davidson past strategy :
Weakness:
• Lack of bargaining power
Strength:
• “MAN” SYSTEM : Managers visited
Japanese automobile plants.
• Introduced own version of Toyota system.
• Enhanced market share of heavyweight
motorcycles (Greenblatt, 2017).

8
EFFECTIVENESS
OF ITS PAST
STRATEGY:
Harley Davidson past strategy :
Weakness:
• Lack of Economies of Scale
Strength:
• Surge production : Rethinking and restructuring of
various manufacturing operations.
• Considered flexibility to introduced wider range of
products and matched with seasonal fluctuations
(Grant, 2015).

9
References:
• Coutinho, M., Mesquita, J. and Muylder, C. (2018) Ultimate Loyalty: a Case Study of Harley-Davidson
Clients. Revista Pensamento Contemporâneo em Administração. 12(3), pp.143-154.
• Field, G. (2001) Harley-Davidson Evolution Motorcycles. Osceola, WI: MBI Pub. Co.
• Grant, R. (2015) Contemporary Strategy Analysis. 9th ed. Chichester, West Sussex, United Kingdom: John Wiley
& Sons Inc.
• Greenblatt, T. (2017) American Iron Magazine Presents 1001 Harley-Davidson Facts. Minnesota: CarTech.
• Harley-davidson.com (2020) Become A Dealer. Harley-Davidson UK [online]. Available from:
https://www.harley-davidson.com/gb/en/about-us/company/become-a-dealer.html [Accessed 25 March 2020].
• McColl-Kennedy, J., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z., Perks, H. and Friman, M. (2015) Fresh
perspectives on customer experience. Journal of Services Marketing. 29(6/7), pp. 430-435.
• Morgan, B. (2020) The 10 Most Customer-Obsessed Companies In 2018. Forbes [online]. Available from:
https://www.forbes.com/sites/blakemorgan/2018/02/15/the-10-most-customer-obsessed-companies-in-2018/#55
9e2c626ba1
[Accessed 26 March 2020].