Question

In: Economics

how does Costs and industry structure benefit harley davidson

how does Costs and industry structure benefit harley davidson

Solutions

Expert Solution

Harley Davidson constantly make changes in three areas: 1) structure, i.e. introduction of new programs or new services; 2) technology, i.e. alteration in automation and/or equipment; and 3) people, i.e. selection, hiring, relationships, training, and attitudes. Change management is a strategy designed by the management to transit from the status quo to certain new ideal way of doing business. Change is an ever-present feature at Harley Davidson, both at an operational and strategic level

Harley-Davidson incurs costs in accordance to the procurement of materials and supplies, the operation of its manufacturing and distribution infrastructure, the maintenance of its communications and information technology infrastructure; the implementation of marketing and advertising campaigns; the management of its partnerships, and the retention of its personnel. The use of the Cost/Differentiation as a Business Level Strategy has proven highly beneficial since the company have been in business. Harley Davidson tried to differentiate themselves from their competitors in the motorcycle industry, by producing a brand image that several competitors have failed to recreate. Harley Davidson has two different companies built into one. The first of the two companies is into the production of motorcycles at prices that are competitive against their rivals. Harley Davidson demands high standards of quality and efficiency and demand reduces costs, which eventually add to a higher quality less expensive motorcycle. Moreover has done extensive research to find out information about their average customer. Thus, an efficient costs and industry structure helped Harley Davidson in their success.


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