...1. Was linking the software selection process to the overall supplier management strategy appropriate? That was appropriate to do that because the process will bring in the requirement and capabilities necessary so that the company could recognize the strategic vision. Also, linking the software process may take more time than usual but " when your strategy is deep and far reaching, what you gain by your calculations is much. So you can win before you fight." Besides that, software selection process was necessary to build the necessary trust, enthusiasm and engagement in SMS. That process seemed to be a good chance that to get the organization to "think out of the box" and considered as a good foundation to start getting everyone think about procurement differently. Overall, the process played a key role in the company's strategy. They had more time to think and interact with the problem which may incur. Other than that, they can recognize their need and be able to make some changes or improvement. As working on the process, they understand the criteria of the software provider they need for their strategy. The software selection seems to be efficient and appropriate the the overall supplier management. 2. Did all the steps the team took during the selection process add value to their decision? Every step which the team had done during the selection did add a certain value to their decision. As the first step, they formed a project team by handpick influential...
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...Background: The case revolved around the non-traditional marketing research strategies followed by Harley Davidson to understand the customers’ needs and anticipate their desires. It provided us a detailed insight to the chronology of the rallies that are organized over the years. The case also gave us detailed information about the Posse rally and the activities involved in the rally. The objective for the rally and customers’ perspective regarding the rally has also been discussed in detail. It also talked about the distribution network, the facilities available at the dealer’s outlets and the customer service. It also briefed us about the participation of customers with diverse demographics, travelling habits. Observations: Customers 1. Contrary to the general perception that members of HOG would be from the higher income groups, it was observed that the customers were having different income levels, age/gender groups and professions. 2. The reasons for members participation in the ride was analyzed based on the questionnaire provided to each of the six targeted participants who represent the cross section of riders. 3. The general ambience before the ride and during the ride has been observed very closely at the various rider stops. The customers believe that the Posse ride is something significant in their life and it is conceived to be an achievement that can be portrayed in their neighborhood. 4. An analysis of the survey conducted on the participants, pre ride...
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...Harley Davidson case study Harley-Davidson’s business strategy is one that includes exporting as well as being involved in joint ventures. Because Harley-Davidson bikes proved to be as popular abroad as they were in the United States, the company decided to think more seriously about international markets and exporting. In addition, Harley launched a joint venture with Porsche AG of Stuttgart, Germany. Companies and firms like Harley engage in joint ventures, or co-ownership arrangements, in order to establish a direct investment presence in a foreign country that pool resources and share risks and control for business operations. In this joint venture with Porsche, Harley hoped to source and assemble power-train components for use in potential new motorcycle products. I would consider Harley to be a multinational corporation. If I was Harley’s top management, I would consider expanding in regions such as Asia or Europe. I would consider expanding in Asia because Asia is a “megamarket,” meaning it is still gaining as a power in the world economy while also already achieving superpower status. In Asian regions, “opportunity” is always the watchword of the day. I feel that Europe would also be a good place to expand because Europe is currently a place going through dramatic political and economic development. Europe is a region that is willing to eliminate trade barriers, create uniform minimum technical product standards, unify financial regulations, and offer...
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...Harley-Davidson Case Analysis MGMT 4290 Professor McGowan Keiven Cosgriff I. CORE PROBLEM Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled...
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...focus. Harley Davidson uses a focused differentiation strategy, because they operate primarily within the high-priced, heavyweight motorcycles segment. This strategy is best described as producing a differentiated product and charge sufficiently higher prices to more than off-set the added costs of differentiation. The key issue within this strategy is capturing value for the customer. Some key drivers for Harley are: Premium brand image, extensive product customization and unique styling. The distinctive motorcycle design and their unique image and style assists Harley Davidson's marketing activities within the value chain. They introduce new colors every year, motorcycles are highly customizable and they enhance the brand experience for customers with the Harley Owners Group. This creates loyalty which explains why half of the sales are made by repeating customers and therefore this is considered one of Harley's greatest assets. Dealer relations were a also continuing strategic priority for Harley. It's retail environments Group created a set of performance standards and guidelines for dealer which helped improve their distribution and outbound logistics within the value chain. Harley's dealer development program also increased support for dealers while imposing higher standards of pre- and after-sales service, and requiring better dealer facilities. This contributes to the service activities within the value chain and their premium brand image. Around 1969 Harley encountered...
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...Introduction “Harley-Davidson: At Last” case study discusses Harley-Davidson‘s marketing mistakes and successes when the company was faced with the invasion of Honda and other Japanese manufacturers in the 1960s. Harley-Davidson did not consider Honda’s lightweight motorcycles as a threat since they believed that people buy mostly heavyweight motorcycles not for transportation, but rather as sport vehicles for leisure time use. Unfortunately for Harley-Davidson, Honda was able to penetrate the American market successfully by offering lower prices and reliable motorcycles. The latter attracted a new segment of customers with different needs and demands. Consequently, Harley-Davidson witnessed a fall in the market share from 70% in the 60s to 5% in the 80s. Another reason for this drastic decline of market share was the bad quality of the newly produced motorcycles, as well as the brand image that was linked to the pot smoking, tattoo covered, and beer drinking motorcycle gangs. This paper will discuss the marketing strategy Harley-Davidson company has implemented to regain its market share and what the company is doing today to deliver high levels of customer value. Furthermore, the paper will shed some light on how value is managed through the marketing mix, as well as how the company has positioned itself in the market relative to competitors. Company Overview There is one U.S. based motorcycle manufacturer that stands out as a world leader in the motorcycle industry...
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...9-600-006 REV: JANUARY 22, 2003 ROBERT D. AUSTIN DEBORAH SOLE MARK J. COTTELEER Harley Davidson Motor Company: Enterprise Software Selection We were in McDonald’s having our initial SiL’K planning meeting when a gunfight erupted in the parking lot. Bullets started flying through the restaurant. Someone said, ‘Everyone down, lock the doors’. We all hid under the table. I’m lying on the floor looking at Dave and Pat—I’m thinking, Holy Smokes, this is unreal. It was just incredible—a real bonding experience! —Garry Berryman, Vice President, Materials Management David Cotteleer, Information Systems (IS) Manager of the Supplier Information Link (SiL’K) project, smiled as he recalled the terror and subsequent camaraderie that had grown out of that unusual beginning. It had set the tone for the partnership that developed between Berryman, Pat Davidson, Manager of Purchasing, Planning and Control, and himself, as they worked collaboratively to develop the specifications for an integrated procurement system to support the new Supply Management Strategy (SMS). Now he and the SiL’K project team were gathered in their “war room” on the top floor of the Harley-Davidson Corporate Headquarters to face another critical moment in the project’s history. After three hectic months of meeting potential software suppliers, reviewing documentation, and evaluating software packages, the SiL’K team had to make a decision. Who should they choose as their supplier and partner...
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...Case 3- Harley-Davidson Motor Company: Enterprise Software Selection 1. For justification of an IT project expense, expected benefits can be divided into three parts as tangible, intangible, and productivity benefits. The first chart represents quantitative alignment corresponding to tangible and productivity benefits. The second one shows qualitative criteria highlighting the benefits to the company. What these charts are lacking is an explicit match to the “as-is” needs of the company as referenced in Exhibit 5 on page 17. It is clear that significant improvements are going to have to be made for purchasing and materials professionals to transition from bolded activities constituting 70% of their time, up from only 10%. Although the self-evaluation is built to fit against the functional specification, it does not call-out the proposed time savings in order to match the envisaged benefits of SiL’K. The first chart seems to lack properly exhibited costs related to “People” and “Process”. In exhibit 9 on page 20 the Strategic Roadmap for this change management initiative is recorded as at least 50% driven by people and 25-50% driven by the process and technology. If the functional specification given to providers was only built to strategically assess only 50% of the project, the qualitative criteria must balance this focus. The second chart lacks soft benefits which are among the most important factors for choosing a provider. Additionally, the second chart usually...
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...Case Study on Harley Davidson in 2004 The Strategic Situation of the Harley Davidson Harley Davidson is a 105 year-old company that was originally established by neighbors Arthur Davidson and William Harley; it is obvious that the name of the company was derived from the name of the two founders. Harley Davidson is into the industry of motorcycle. The growth of the said industry started from different developed countries such as the United States, France, Germany, Spain, France as well as the Great Britain. It was further developed after the World War II. Harley Davidson is one of those companies that have a long history as well as have been through several ups and downs throughout their operation. During the past operation of the company there have been many factors that have affected their image, performance, position in the market and the global industry, relationship to their customer, and their overall sales. Figure 1 PEST Analysis of Motorcycle Industry’s Past Development Figure 1 shows the four main factors that have affected the past condition of the motorcycle industry. There are four main political factors that have affected the performance of the overall industry. First is the agreement that will be implemented in order to reduce gas. It requires all the producers as well as manufacturer of different motorcycle companies to reduce pollutants by 60% and it was implemented in February 24, 2003. Another important law that...
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...you have? The objectives of HDI include increasing sales, increasing market share in Europe, and achieving a sustainable competitive advantage. So, HDI is seeking to penetrate the market as well as engaging in market development, which in this case means attracting a new demographic segment of younger and European customers it has not yet attracted before due to several reasons such as the price and the appeal of the Harley Davidson brand as being a motorcycle “an old guy would drive”. As stated in the case study, HDI does not and will not have cost leadership in the industry it competes in. The huge gap between Honda which produces over 5 million bikes annually and HDI, which produces slightly over 200.000, allows Honda to benefit from economies of scale and therefore offer their products at lower prices than HDI. The relatively small size of HDI limits its ability to invest in technology and new products, which means that HDI neither has the most advanced technology, nor superior performance. However, as the company recognizes, it is not selling motorcycles, it is selling the “Harley Experience”. This lifestyle and spirit, which no competitor has been able to copy or even beat so far, is the competitive advantage and USP of HDI. Harley Davidson motorcycles are not primarily a transportation vehicle, but a statement of style. The HDI image and the brand loyalty among its consumer base are the company’s strongest assets. As the demand in Europe is increasing, HDI should consider...
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...high. * Brand identification of Harley Davidson has been strongly established for years. New entrant will have to overcome customer loyalty of Harley. 2. Bargaining power of suppliers: (Moderate/High) * Harley’s suppliers are not fragmented so they have a high bargaining power. * Switching cost of changing suppliers is high because of the nature of Harley’s products- -could require investing heavily to be a supplier. 3. Bargaining power of buyers: (low) * Since product is differentiated, customer tends not to be price sensitive. * Product is differentiated or targeted for niche market therefore the buyer will not find the alternative product. 4. Threat of Substitutes: (High) * Customers’ taste is shifted into Japanese motorbikes. Ex. Suzuki * Frequent product introductions and continuous improvements in price. 5. Rivalry: (high) * Lack of products differentiation or narrow product line. * Rivals like Honda are diverse in strategies, origins and personalities. SWOT Analysis 1. Strengths: Domestic and International market share, financial status (The company’s revenues had grown at a compounded annual rate of 16.6 per- cent since 1994 to reach $4.6 billion in 2003—marking the 18th consecutive year of record revenues and earnings), and product quality, strong brand quality, strong distribution network. 2. Weaknesses: Difficulty gaining market share in some European countries, Harley Davidson motorcycles are more expensive...
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...The Strategic Situation of the Harley Davidson Harley Davidson is a 105 year-old company that was originally established by neighbours Arthur Davidson and William Harley; it is obvious that the name of the company was derived from the name of the two founders. Harley Davidson is into the industry of motorcycle. The growth of the said industry started from different developed countries such as the United States, France, Germany, Spain, France as well as the Great Britain. It was further developed after the World War II. Harley Davidson is one of those companies that have a long history as well as have been through several ups and downs throughout their operation. During the past operation of the company there have been many factors that have affected their image, performance, position in the market and the global industry, relationship to their customer, and their overall sales. Figure 1 PEST Analysis of Motorcycle Industry’s Past Development Figure 1 shows the four main factors that have affected the past condition of the motorcycle industry. There are four main political factors that have affected the performance of the overall industry. First is the agreement that will be implemented in order to reduce gas. It requires all the producers as well as manufacturer of different motorcycle companies to reduce pollutants by 60% and it was implemented in February 24, 2003. Another important law that is directly connected to the industry of motorcycle is the process of acquiring...
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...STRATEGIC MANAGEMENT Case Analysis CASE: Harley Davidson, Inc- 2008 By Julian Kee Synopsis Harley-Davidson is one the leading motorcycle manufacturers in the world. It’s hard to imagine the global brand’s simple beginning. In 1901, Harley-Davidson motor company started in a backyard shed by friends William Harley and Arthur R. Davidson who wanted to create their own motorcycles. In 1907, the company had grown to become incorporated. Harley-Davidson was acquired by AMF in 1969, however repurchased in 1981 by the Vaughn Beals. The company then underwent changes to production an inventory management. Since 1996, Harley-Davidson has focused only on producing motorcycles and accessories. The company is run by a 38-year employee name James C. Ziemer, who has experience in many different positions. He is supported by a board of directors with diverse professional backgrounds. Together, they oversee the US and global operations which includes countries like Canada, Latin America, and Europe. Harley-Davidson has two different business segments which include motorcycles and financial services. The current economic conditions have affected all industry including motorcycles. While Harley-Davidson has proven to do well during the recession, they have also faced some challenges. As the economic conditions change, Harley- Davidson has implemented new marketing strategies and e-commerce to gain a competitive advantage. Resources Strong reputation and...
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...international business environments Harley faces? What types of risks does the firm face? The nature of the international business environments Harley faces are complex and varies due to cultural and regional needs of the diverse markets it competes in. This is shown by the differences of the sales mix in U.S. and Europe as revealed in exhibit 1 of the case. For example, in 2006, custom models accounted for 47.4% in U.S., whereas it accounted for 13.4% in Europe. In the U.S., other sales of models based on different criteria such as performance, touring, and standard accounted for 15.1%, 35.5%, and 2.1% respectively. Europeans have different preferences however. Performance, touring, and standard accounted for 41.4%, 26.1%, and 19.2% respectively. The reason Harley faces such diversification is clearly due to customer preferences and market demands. According to chapter 1 lecture slides, I believe that all four types of risks in international business are present: (1) Cross-cultural Risk: Harley operates in different facilities in the U.S., Brazil and Australia. Potential growth markets include Canada, Japan, Australia, Latin America (Brazil), India, and China. There are many cultural differences in languages, lifestyles, customs, and religion of the various countries. These differences may lead to inappropriate business strategies and ineffective relations with customers. However, understanding the different markets would be beneficial to Harley. (2) Country Risk: Differences in...
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...Case Study: Harley-Davidson -Analyse Harley-Davidson resources and capabilities, and identify its key strengths and weaknesses - Analyse the international competitive environment in which Harley-Davidson is operating to identify its main threats and opportunities. Recommend a forward strategy for Harley-Davidson, which addresses these issues. International Management Individual Assignment Table of Contents 1. Introduction 3 2. Harley Davidson Overview 4 2.1. Harley-Davidson Current Strategy 4 2.2. Resources And Capabilities 5 3. Industry Analysis 6 3.1. Porter’s Five Forces Model 6 3.2. International Competitive Environment 7 4. SWOT Analysis 9 5. Forward strategy recommendation for Harley-Davidson 10 6. Conclusions 12 6. References 13 1. Introduction This report is based on Harley-Davidson, Inc., case study. The aim of this report is to analyse industry and international competitive environment where Harley-Davidson is operating in. One must apply and fully analyse theoretical concepts and frameworks in order to fully comprehend how Harley-Davidson is differentiate itself in the international competitive environment and what strategies is using to achieve higher market share. The empirical material is being analysed by exploring the general information of Harley-Davidson company itself, following by the industry and competitive environment analysis, review of SWOT theoretical framework. Finalising with the recommendations of forward...
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