Question

FORUM - Chapter 3 - Harley and the Value Chain

In order to address the course learning objective. "...demonstrate the ability to analyze and then create business and corporate strategy options that fit the firm's internal environment.." please assess the following passage.

Harley Works to Draw in Younger Riders

With motorcycle sales in a slump, Harley-Davidson is boosting its efforts to attract more young riders. Harley has been a high-end, aspirational brand for motorcycle riders for several decades, their image and product line resonating with Baby Boomers and Generation X riders. With those rider groups aging, Harley has seen its sales decline in recent years.

To help attract younger riders, in 2018, Harley is revamping its product development process, focusing on models that appeal to young adults, women, and minorities—in addition to its core market of older white men. This leads to a focus on smaller, more affordable bikes. Fitting this direction is the development of the street class of motorcycles, which are designed for urban riding and have a narrower chassis compared to other Harley models and start at less than $7,000. To improve their cost basis, Harley has also revamped its procurement process to look for more cost efficient global suppliers and has even shifted some of its manufacturing to India. Harley also sees the need to reorient its marketing to connect with younger riders, including shifting marketing activities from general market advertising to local, dealer-centric social activities. In short, the firm sees the need to undertake change across its value chain.

Progress to date is mixed. Younger riders are less likely to ride motorcycles, but Harley argues that the percentage of young riders who opt for a Harley is actually higher than it was with prior generations. Whether Harley will be able increase the number of younger riders is the key to its long-term sales potential.

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Please address the following questions:

1. Will Harley be successful in drawing in younger riders? Why/why not?
2. What other parts of the value chain could Harley revamp to better serve the needs of younger riders? Please explain.

Answer 1

Answer:-

1)

They have revamped their item improvement process with center around reasonable bikes for urban youth.

Since urban youth comprises of a considerable piece of populace in this way wanted deals might be accomplished by tapping this fragment.

Harley has likewise chipped away at its inventory network the board to lessen acquisition and assembling costs.

Further they have changed its promoting technique from general publicizing to nearby vendor explicit social exercises to speak to their intended interest group.

2)

As far as value chain Harley has just taken a shot at its regressive incorporation by revamping its obtainment and assembling exercises.

To add to it they may enhance the item by offering most recent innovation and wellbeing highlights in their bikes by contrasting and the most recent drifting brands.

One significant promoting technique for Harley ought to be to hold their faction image image.For this they may support Harley Davidson bike rally occasions to make more brand perceivability.

Harley extras have likewise been urgent for the normal clique brand picture of Harley which not just makes perceivability bu additionally builds by and large deals volume of Harley.

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