Different Strategy Development At Harley Davidson Business Essay

Different outline Development At Harley Davidson Business EssayHarley-Davidson used Myerson game supposition to gain a militant edge over its Japanese competitors. This system is concerned about the inter dealinghips between the competitive moves by a deco stride of competitors. Hence the move by Harley to partition the US government to chew the fat a 40% tax on import wheels.Global dodgingHarley-Davidson has been a major US chance uponr of rides and the countrys top deal outer of titan motorcycles. With a product offering of in excess of 30 models of touring and bespoken built Harleys, through a global network of to a greater extent than 1,300 dealers. The come with forces and commercialises five families of motorcycles Touring, Dyna, Softail, Sportster, and VRSC. Addition solelyy, their strong applied seek and development strategies incur got al misfortunateed them to manufacture three-wheeled motorcycles. Harley sells attitude and culture with its brand-name products which allow customers to feel a great part, give birthership, be douring and empowered when they use their products. Harleys dispersion network allows for their products to fall to the merchandise quickly.This strategy has determined Harleys future opportunities and strategies for example, their entry into the India marketplace. Their forge and manufacture of motorcycles which aggregation to women coupled with their additional and diverse product line in raiment accommodate for bikers as well as other products which cig atomic progeny 18tte appeal to a diverse market which includes persons who do not own and may never own a Harley.AcquisitionsTheir acquisition of Buell Motorcycle alliance was besides a strategic move as it allowed the familiarity to precede a constituent of the market which was untasted by them, through Porters low cost strategy, low maintenance motorcycles which were benevolent economically and environmentally. As a run Harley was poi sed to enjoy economies of scale since they were commensurate to extend occupation while lowering the cost per unit of production as Harley and Buell was able to enjoy synergies from the acquisition as surplus railway locomotives from Harley was able to be utilise by Buell. By acquiring Buell, Harley was able to build rather than get market sh atomic issuing 18.However, as a firmness of the global recession of 2008 the interactional alignment changed the phoner to continue to manufacture their low-cost single-cylinder Buell Blast. Harley benefited from the integration as they were better able to respond to the market need and demands. As they were/ atomic number 18 able to adapt to market changes and make better efficiency in the manufacturing, design and safety features.Consequently, Harley divested MV Augusta which they acquired in 2008, this divestment can be attribute to the effects of the recession as the society was also experiencing a monetary crisis. By selling title and possession they were poised to focus and mechanism strategies which would allow them to maintain competitive leadership.Through Ansoffs product-market growth strategy matrix, Harley-Davidson penetrated in the buff markets as they sought to plump out by partnering and engaging with dealers throughout the world, to buzz off recent markets with the Buell product offering.Through the acquisition of MV Augusta root word Harley-Davidson was further allowed to capitalise on Ansoffs product development strategy where they entered newfound markets with a new light weight motorcycle. This product was particularly appealing to women cyclists since they were better able to independently control the machine.To survive the depression of the thirty-something Harley-Davidson change to motorcycle engines in order to capture new untouched segments of the market. Diversification fit to Ansoff refers to a strategy by which is pursued by an organisation through its new product offeri ngs which allows them to enter new markets.This strategy enabled Harley-Davidson to increase their market power and gain greater efficiency as sales increase there was to a greater extent profits which enabled them to induce in more efficient technology, research and development.In 1907 Harley captured the emergent market cosmos the police department as they were venturing into motorcycle patrol as a result they were able to penetrate this market which in the past did not exist.ENGINE TYPEYEARDETAILSFLATHEAD1909-1936Had a displacement reaction of 45 three-dimensional inches (742 cc) and produced about 22 horse powerKNUCKLEHEAD1936-1947The hammerhead shark was mainly developed and used during the wars.PANHEAD1948-1965This vehicle engine was 60 three-d inch (990 cc) and 74 cubic inch (1200cc), which produced 50 and 55 horse power.SHOVELHEAD1966-1983Displace 74 cubic inches (1200 cc) and produced 60 horsepower.EVOLUTION1983-1966The development was the first motorcycle in a serie s which manifest modify quality after the acquisition of AMF. These vehicles did not leak oil and the displacement was 81.8 cubic inches (1340 cc) and produced 70 horsepower.TWIN CAM 881999-PRESENTThe Twin Cam 88 has an engine of 88 cubic inches (1450 cc) displacement, producing 80 horsepower. These engines remain air cooled and overhead valves ar used.REVOLUTION2001-PRESENTThis engine is presently cosmos used in save one Harley product, the VSRC. It is 60 degrees, with overhead cams, fuel injected and only 69 cubic inches (1130cc) production 115 horsepower.Through the process of diversification Harley-Davidson was able to reengineer their products to conform to and indulge the changing necessarily and demands of the market and as a result they get to been able to penetrate and capture new markets which were once untapped.Harley have been able to overcome their once tarnished reputation of unfair business do as a result of their application to the US Tariff c atomic number 18 for a 40% tariff to be impose on imported motorcycles into the US.Harley utilizes personnel selling and advertisement for their promotional mix in acquiring the product to their customers. They also target various segments of the market by advertising in national magazines such(prenominal) as Road Track, Popular Science, and caboodle as well as specific motorcycle magazines such as Easy Rider. Additionally, Harley uses personnel at their 595 dealerships located throughout the United States to get the product to the consumer as a when they are indispensable. Harley uses publicity and public relations to gain a more positiveimage for the company. Celebrities such as Jay Leno and Wynonna Judd are engaged in the companys promotions enjoying riding motorcycles and wear Harley-Davidson apparel.The conduct of a SWOT analysis would reveal Harleys customer loyalty to the companys brand which was force-out for Harley and a threat to their competitors. Harley offers all its products on-line where they can be delivered through-out the world. Online practised rider courses are also offered, split are customized to suit the needs and taste of their individual customers thus creating the ultimate ride.CORPORATE-LEVEL STRATEGYTheir Corporate-level strategies focused on the strategic scope of the entire enterprise. Harleys strategies included the companys finality to enter corner markets, acquisitions and the entry into new geographic markets with new and innovative products. This also includes their staffing issues were 440 employees were retrenched, their decision also to outsource also contributed to the companys cost leadership position. In addition, their market diversification to strategically penetrate the India market over a flow rate of twenty to five years which were cling toing their local Indian Tata Nano market. Their inembodied strategies employ under the companys leadership of Richard F. Teerlink the former CEO, Harley has also been able to se ll gift items suitable for women, men, youths making them a one-stop gift shop.The underlying expound of Harleys focus strategy is that the firm is better able to serve its segment than its competitors serving a broader range of customers since they are better positioned to determine, anticipate and satisfy the changing needs of their customer. Harley has been able to differentiate them based on get together customer needs through their secernate, low costs and competitive price for specialty goods.Their corporate strategies represent the long-term direction for the organization which has been to become the top motorcycle manufacture in the world.Why have Harley-Davidson been more or less successful in their strategic planning approach shot?Portfolio MatricesGrowth/Share (BCG) MatrixIssues addressed as part of a companys corporate strategy includes diversification, acquisition, strategic alliances, and formulation of new business ventures. The corporate strategies actioned at H arley incorporate their plans for the entire organization and change to be industry specific market such as manufacturing motorcycles that are light-weight and suited for women. The BCG matrix classifies business-unit execution of instrument on the basis of the units relative market dish out and the rate of market growth.Products and their respective strategies fall into one of four quadrants. The natural starting point for a new business is as a question mark. If the product is new, it has no market share, but the predicted growth rate is good. What typically happens in an organization is that management is faced with a number of these types of products but with too few resources to develop all of them. Thus, the strategic decision-maker essential determine which of the products to attempt to develop into commercially viable products and which ones to drop from thoughtfulness as Harley did with the Buell Blast. Question marks are specie users in the organization. betimes in their life, they contribute no revenues and require expenditures for market research, test marketing, and advertising to build consumer awareness.If the correct decision is make and the product selected achieves a towering market share, it becomes a BCG matrix star. The Harley-Davidson company is made up of quadruplicate business units, its corporate strategy focused on decisions which can increase sales and allow the company to gain competitive advantage by maximizing the effectiveness of their core competencies and the resources both(prenominal) financial and non-financial.As stars have full(prenominal) market share in high-growth markets they generate large cash flows for the business, however they also need large inputs of finances to maintain growth. They required large expenditures for advertising, research and development continuously improve the product which would enable it to establish a dominant position in the industry. The companys strategic positioning with the U S Army together with the exceptional features and capabilities RoadKing and Sportser allowed the company to gain high market share and high market growth.The diversity of their products is considered in ground of its related and unrelated diversification. However, performance at the business level of the company suffered leading to workers striking as a result the company was consequently sold to thirteen investors strategically lead the company.The Fat Boy though in the mid-nineties was a market leader and cash alarm for Harley however, its market share was high and low-growth as the product reaches its maturity stage of the product life cycle. This product was a well-established product with wide consumer acceptance and as a result sales revenues were high.The strategy for such products is to invest little money into maintaining the product and divert the large profits generated into products with more long-term earnings potential, i.e., question marks and stars which Harley di d with their FXR models.Dogs are businesses with low market share in low-growth markets. These are often cash cows that have doomed their market share or question marks the company has elected not to develop. The recommended strategy for these businesses is to dispose of them for whatever revenue they lead generate and reinvest the money in more attractive business such as into the Fat Boy.A more stringent approach, but allay one with weaknesses, is a competitive judicial decision. A competitive assessment is a technique for ranking an organization relative to its peers in the industry. The advantage of a competitive assessment over the BCG matrix for corporate-level strategy is that the competitive assessment includes critical success factors, or factors that are crucial for an organizational to endure when all organizational rivals are competing for the same customers.Porters DiamondPorters Diamond suggests that the reasons are inherent why some countries are more competitive than others, and as well why some industries within particular nations are more competitive than others. This is evident in Harleys case as the US army chose to sustentation their local industry to sum up them with motorcycles during the world war. They also have what appears to be a lifelong contract with the police department to sell motorcycles to them. switch embargo was also imposed by the US government to protect Harley from competitive rivalry from their greatest competitor Japan and this helped Harley in create brand. Harley also created a false demand for their product by creating an imitation shortage.Global sourcingGlobal sourcing refers to purchasing renovations and components from the most appropriate suppliers nearly the world regardless of their location.Harley source it component parts where the cost is cheaper and more affordable and as a result they were able to provide motorcycles at affordable and cost efficient prices. Due to global sourcing of component parts Harley was able to ensure that parts were always available when and where they were required.The internationalization is potential of Harley is clearly determined and heedful by the following factors. Harleys market has been diverse, comprising of a wide global demographic, their products have been design for the comfort, safety and enjoyment of both their male and female customer base. Harley has developed and utiliseed a differentiated strategy where their prices and product offerings have been attractive and affordable to all income brackets.The company has had the favor of the US government and the loyalty of their customers, based on the swear which they have given to the US during the war. However, countries such as India have imposed tariffs to protect their own local industries from large multi-national companies. However, to strengthen their competitive ability, Harley diversified its products to attract new markets, acquired other companies which allowed them to gain financial strength by capitalizing on the financial resources and gaining access to markets which the company were unable to before.Internationalization according to Barlett and Ghoshal relates to the different structures for multinational companies. Harleys global strategy and its sources of competitive advantage that Harley gets from being a transnational company are its efficiency through its manufacturing processes which enable it to enjoy economies of scale and develop a reputation to be envied by its competitors.The internationalization of Harleys motorcycles has an uncertain relationship to financial performance as distant exchange rates may fluctuate resulting in a lost to the company if the exchange rate is decreased in the company which they exportation to.To acquire and maintain first-mover advantage Harley has been able to continuously revitalise its products to run across and satisfy the changing need and taste of their customer base. Through research and develop ment the company has been able to keep one step up of their competitors, placing at a better off than their competitors as a result of being first to market with a new innovative product.Harleys global strategy works because they have a strong global distribution network which ensures an efficient and speedy distribution of motorcycles to customers. With the emergence of the internet a customer can stay in Trinidad and purchase a motorcycle from anywhere in the world.GROWTH STRATEGIESHarleys growth strategies are designed to expand performance which is usually measured by the degree of sales, profits, product mix, market coverage, market share due to trade embargoes.Diversification strategy involve the company entering different markets by adding different products to its marketing mix. Harleys products are targeted towards all members of the family and are related to existing product offerings.RETRENCHMENT STRATEGIESHarleys downsizing strategies involve a reduction in the scope of the organizations staff number by 440 in 2007 and the sale of assets associated with discontinued product or service lines, as a result Harley sold MV Agusta in 2010.FUNCTIONAL-LEVEL STRATEGIESThe functional-level strategies of all organizations are concerned with the coordination of the functions of the organization which are marketing, finance, human resources, production, research and development, etcetera This area upholds and contributes to individual business-level strategies and the overall corporate-level strategy as it ensures that set goals and objectives are achieved.At Harley employees involvement are critical to the accomplishment of the companys survey and armorial bearing and as such Harleys has cultivated the creativity of their employees. Employees are not inured as machines but allowed to be innovative and involved in the imaginative development of the company. This Accenture Human Capital Development Framework (HCDF) was first implemented in 2004 and reint roduced in the company in 2006. Harley also partnered with the union and this strategy allowed for change to be flexible, this was a key component in do employees and encouraging them to buy-in to any change in strategy which management wished to implement at Harley. The strategy resulted in a motivated workforce who matte a sense of belonging and ownership. The company encouraged a antiauthoritarian style leadership instead of a dictatorship, through greater employee fraternity and collaboration as stated by Teelink (2003)The biggest takeaway to my experience in a circle organization is that positive change will happen as long as you don try to force it your way. If you lead participative change, it will work.Harley fosters a culture of team-building which ensures that employees are focused and motivated towards achieving the corporate goals and objectives of the organization.Employees are also motivated and encouraged to produce as they have stock ownership this strategy give s employees a sense of belonging and that they are very meaning(a) and involved in the organization and are willing to embrace changes within the organization without resistance.These initiatives were adopted because the companys new management recognized that to survive in a highly competitive and global market it was critical to make the company a continuous learning and improving organization where confabulation is open and free throughout the hierarchy of the organization. Employees must recognize and fully comprehend their job functions and its importance to the efficiency in the manufacturing process as well as to the long-term survival of the company.Harley made significant go on at surpassing their internal benchmarks with the implementation of HCDF as employees performance and rig improved and increased. Thus performance can now be measured by a balance scorecard.Balance add-inBalanced Scorecard is a system used to measure a companyHYPERLINK http//www.coursework4you.c o.uk/essays-and-dissertations/analysis-of-companies/analysisofcompanies.phpHYPERLINK http//www.coursework4you.co.uk/essays-and-dissertations/analysis-of-companies/analysisofcompanies.phps activities in footing of its vision and strategies, as a gives managers a comprehensive view of the performance the business. This approach to strategic management was developed in the early 1990s by Kaplan and Norton. This system allows organization to visually clarify their vision and implement strategies which can improve organizational functions.Harleys study the logistics of building and selling motorcycles in the early 1980s, when it was near bankruptcy. Harleys balance scorecard review the procurement process, lineage stock theory and practice, and the parts marketing process to ensure a holistic, end-to-end supply chain management to supporting the company vision which ensures that the companys products reached its customers. Through performing a thorough study of their entire supply chai n, Harley Davidsons logistics personnel have been able to define, measure, and improve their processes in order to improve efficiency in manufacturing process. A prime corporate decision was introduced to void the number of suppliers from 500 to 200. A smaller supplier base made quality improvements easier to implement and facilitated the detection as there was increase normalization of process and procedures, tracking, and resolution of quality problems.ConclusionThe success of Harley can be contributed to the executive management team which has taken strategic initiatives such as the investment funds in their human resources, by empowering them to address the weakness associated with the Company. This investment has also given Harley a competitive advantage in the motorcycle industry. The Company has exploited the opportunities in its external environment to create new revenue streams for itself.