Question

​​​​​Harley-Davidson, Inc., 2018 Case

• What resources and capabilities are needed to compete within the motorcycle industry? In relation to these resources and capabilities, how does Harley-Davidson compare with other leading motorcycle companies?
• How effectively does Harley’s strategy exploit its key strengths while protecting itself from its key weaknesses?

Answer 1

Resources and capabilities needed

To define one particular company’s strategy in terms of where it is competing and how it is competing. In the side of where: they were decided to focus or concentrate on the super heavy weight cruiser and tourist bikes. In the side of how: they implemented an unremitting quest for differentiation advantage. These all strategies are implemented from the design through to customer services.

            Harley has focused upon the single segment where its traditional design and brand image can be most effective. At the same time, Harley has shifted customer focus from its traditional, younger, blue-collar segment to the affluent, older, professional segment capable of affording a huge amount for a leisure item. This shift also resulted in changing functional strategies of Harley such as more quality, improved suspension etc. also they should focus on Corporate Social Responsibility (CSR). At the same time Harley does not increase their cost position as a low volume producer compared with other motor cycle companies. Recognizing its role as a lifestyle product, Harley has built differentiation not only in the product but the company as a whole.

Comparison with other companies

	Harley	Other leading company
Research and development	Small R&D budget which lacks modern technologies	R&D budget is greater than Harley’s total revenue
Design	Traditional design	Innovative design
Customer support	High customer support	Limited to dealer services.
Distribution	Strong dealer network in US	World wide access
Brand	Unrivalled image	Strong reputation for quality and performance

Standing exclusively upon the traditional image to differentiate it motor cycle is an insufficient basis for sustainable differentiation advantage. They should focus more on giving best results to the customers. Reinforcing Harley’s competitive advantage against potential threats requires to reduce the cost gap between their Japanese competitors. It should include;

· Additional efforts in standardizing components

· Continuing capacity expansion in sectors like quality, design etc.

· Efforts to improve productivity through increase of manufacturing activities.

Harley should build its technological, manufacturing and design capabilities and it will result in getting better place in the market. By doing this they can easily compete with the other companies. It will result in earning more revenue than others.