Analyzing Harley Davidsons StrategyUniversidad Carlos III de MadridMaster in Human Resources Management HARLEY – DAVIDSON:Internal Analysis 1. Identify Harley‐Davidson’s strategy and explain its rationale.The business’s strategy is based on differentiation reached by brand identity. The company is not only selling motorbikes but ‘’Harley’s experience’’ as its mission. Consumers when buying are mostly motivated by social and psychological needs, such as the desire to find community with others and to reinforce their own identity. The company recognizes that the business is on selling lifestyle, not transportation. The reinforcement of the relationship with its consumers implies creating a sense of belonging to a way of life, to the values of freedom, individuality and adventure. Consumers are loyal to the brand because they feel part of it and this emotional attachment explains why Harley invests a lot in establishing an exclusive relationship with its clients.
This means we treat your needs with genuine care at no additional cost. We accept your requests in advance and give you a free service, complete with no additional fees, so it is a bit of satisfaction. Your satisfaction is entirely your independent, personal decision. Whether you are from abroad or from within the U.S., we all feel comfortable accepting a phone call from you, on demand or, if you are outside of the U.S., a return call in person. If you find your business is being misrepresented, please reach out to us.
This is a special kind of emotional attachment. You are not your customers anymore but your fans who help you create a beautiful, sustainable brand. Our sales team is here to help you realize this! We care about you, and our goal is to help you build the relationship that goes beyond your own personal branding. Each of you is welcome to make the most important emotional connection with us, in this case, a positive one.
We want to help you succeed. All products do not have the same meaning. Your product has changed over time, but your value has not changed. We treat your needs with the utmost care. We help you achieve your goals through our personal relationship with you and your partners. Don’t forget, that is the ultimate goal: to meet your personal satisfaction. Don’t get too much information on your competitors. Don’t be shy about taking calls or emailing you if they have negative feelings towards your product or customer. Be clear on your feelings and do not get too caught up in the process.
Our job is to get you what you want, which is what everyone does. With some success, you will discover and grow your brand. As you build your brand, you will learn the power of emotional attachment.
Your experience and feedback will help your team grow, share knowledge and become a stronger team. Your business will take you anywhere! As part of our team collaboration, you will be encouraged to share your opinion on what inspires you to grow your business. We encourage you to listen to your customers before you make an appointment and discuss and collaborate with them before making your decision. We will be always eager to help you with any technical problems on our team; when you reach out to us, we will give you the best possible answer. We are here to help you succeed by providing you with the best and most efficient marketing efforts possible.
Harley Davidson™
The corporate strategy is highly market-focused, focusing on the super-heavyweight motorbikes, what it does best. Investing in one’s strength is the safer path. 2. Analyze Harley‐Davidson’s resources and capabilities. Resources-TangibleCreation of new production plants in order to satisfy the huge demand.Investment in new models and activeness in launching them.Introduction of new services to customers: test ride facilities, rider instruction classes, insurance services, motorcycle rental, assistance for owners in customizing their bikes.Product positioning: it offers a wide range of customization options to offer a unique and personalized motorcycle to each of its customers while standardizing on key components. Merchandising: clothing and collectibles.Harley Financial Services: established to supply credit, insurance and extended warranties to Harley dealers and customers.-IntangibleThe brand: Consumer’s emotional attachment to the ‘’Harley experience’’ is a highly valuable resource of the company, as it allows a different and exclusive relationship with its consumers. Consumers are faithful to the company. Buying Harley implies buying a style of life, as well as values of individuality, freedom and adventure. The transferability and replicability of this emotional attachment is quite difficult.Production scheduling: JIT (Just In Time) system & MAN (Materials As Needed) help to cut costs, as the company only produces what it is demanded.Harley creates the cruiser segment of motorcycles, while the rest of competitors only try to imitate it. Matching with the culture: the brand is an archetype of the ‘American style’. Reputation generated by the brand name, as well as with suppliers and the product perception due to its positioning in the market. -HumanSkills/know-how: Harley is engaged in constant upgrading: the distribution network, the dealer development program. Training: Harley provides high level training programs for its employees to add value to the company.Open communication and health benefits for employees help to boost the involvement needed to achieve the goals of the company.Adaptability: H-D manufacturing plants are capable of producing many different models.Commitment: HOG (Harley owners Group) is created as the organizational link to enhance the sense of community. Employees and managers are involved in organizing and attending social and charity events. Loyalty of employees: a new relationship between management and employees is created to achieve employee commitment and job satisfaction. Harley believes in non-hierarchical, team-based structures what boost motivation among them. Capabilities:Differentiation advantage: it is obtained through brand recognition and the Harley experience providing the customers a unique motorcycle. The company has been particularly effective at achieving differentiation advantage through careful examination of the activities that customers undertake in selecting, purchasing, using and maintaining their motorcycles. Employee involvement and retention: there is a commitment at all levels of the organization. Not only is the top management the one taking decisions but also the shop floor. This involvement consists on establishing shared values and vision, shared mission and operating philosophies and agreed objectives and strategies. Employee involvement exists because management and labor can agree that they have a mutual goal and this goal regards the long-term success of the company. Manufacturing: Harley´s manufacturing plants are capable of producing many different models. In recent years, it was very active in new product development and the launching of new models. Distribution: the quality and effectiveness of its dealer network is a key determinant of the strong demand for its products. Dealer relations have always been a strategic priority for Harley, as dealers play a central role in the relationship between the company and its customers. Dealers also receive training programs to meet the higher service requirements. Besides, the JIT (Just In Time) inventory management needs good transportation flow logistics. H-D has the capability to reduce lead times and ensure pull delivery through its private fleet of trucks. Segmentation: the company knows in which segment outstands and focuses effort on it instead of trying to be in many different segments at the same time. 3. What does your analysis imply for Harley’s potential to establish cost and differentiation advantages?Ever since the company foundation, it used to have difficulty in establishing cost advantages over its competitors. One reason for this issue can be seen in its lack of bargaining power. As the company produced a small number of bikes, a limited amount of components had to be ordered to its providers and, therefore, the firm could not be granted a discount like its competitors who bought in large quantities. As a result, every single component is more expensive and the mechanism of economy of scales is affecting the company because it is in a disadvantageous position.