MGT499: Strategic Management Professor Daniel Corcoran November 30, 2014 STRATEGIC DIRECTION OF HARLEY DAVIDSON The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base. Stakeholders “represent very important constituencies or groups of individuals who are part of an organization or …show more content…
Both employees and customers benefit if this goal is realized. Product development. Harley’s goal to reduce product development times include three main facets: “1) a laser focus on the best product opportunities; 2) reduced time-to-market; and 3) increased product development capacity through efficiencies” (Harley Davidson, 2011, p. 4). This goal does not meet the full criterion of the SMARTER principle. The goal is not specific. It does not quantify how much it wants to decrease the timeliness of product development. Employees benefit from this goal. The main benefit is that because HD believes in employees participating in the product development process it has created a learner centric environment. Employees stay well versed in their fields while assisting the company in developing quality products in shorter periods of time. This benefits the customers by providing quality products that keep up with advances in technologies and consumer desires. Retail. “The goal of this transformation at retail is quite simple: to provide a premium retail experience with every customer, every day and everywhere, while strengthening dealer profitability” (Harley Davidson, 2011, p.5). Harley Davidson plans to work with all of its stakeholders to ensure that all of its many faces culminate in a great customer experience. This includes an in store and online experience. The SMARTER principle is also not
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.
“Stakeholders (or interest groups) are tangible, visible and approachable groups or institutions which have a direct influence on the functioning of an organisation.”
Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.
As pointed out in the video, Harley Davidson is fully committed to fostering and growing the women motorcyclist market. Women today represent a large sector of the workforce, enjoy higher incomes than 20 years ago, and possess more disposable income. Furthermore, women are much more empowered than ever before and are encouraged to exercise their freedom of expression and individualism.
Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.
The first strategy Harley-Davidson uses is customer focus. Harley-Davidson offers a wide range of products and services, from children’s’ tricycles, clothing accessories, and affordable motorcycles to more higher-ended luxury motorcycles targeting customers in all age groups. By allowing their customers to personalize and customize their motorcycles, this strategy helps build their second strategy, which is brand loyalty. Other strategies that help build brand loyalty and selling dreams are to have groups, such as the Harley Owners Group (HOG) and the Buell Riders Adventure Group (BRAG), so they can emphasize to their customers that everyone is welcome to join its large extended family for riders,. Their value is: “Tell the truth. Be fair. Keep your promises. Respect the individual. Encourage intellectual Curiosity.” (Harley-Davidson web
In this paper we will perform a complete analysis of the Harley-Davidson Corporation including their corporate and business strategies, strengths and weaknesses, environmental opportunities, the five industry forces, and financial situation. Harley-Davidson has many attributes, which will be apparent in the following analysis. The paper will attempt to define the different components of the analysis and put them all together in a way that seeks to explain the way that they contribute to the overall success of the company and its stakeholders.
Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.
Harley-Davidson Motor Company (HDMC) is one of the world leaders in the production, marketing and servicing of motorcycles in the US and throughout the world. The company manufactures a range of motorcycles and has established a network of dealerships in the US and overseas, and has a series of merchandising and selling strategies, including a growing financing business. The company is headquartered in Milwaukee, Wisconsin.
Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
The strength of Harley Davidson can be seen in its logo and product brand. In the United States, the Harley Davidson is like a cult since it has so many followers, as depicted in the case study whereby in all the rallies, hard core fans of the company, for example the Harley Owners Group was present. This gives the company a competitive advantage since it has a market that is readily available and willing to purchase its products no matter the cost. The other strength of the company as seen in the case study was in the protection by the government since it was a United States company. This helped Harley to recover when the company placed an increase on the tariffs charged on the
After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.
Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the
Harley-Davidson has remained true to their brand and understands that they cannot be everything to everybody. In addition, the company have a brand that can work efficiently worldwide, and the brand is alike no matter where you are in the world. As a result, marketing the brand internationally has changed drastically over the years, and execution of communication of the brand may vary since each country represents the brand differently. The organization’s marque is protected without adding a dictatorship.
Mission statements may play an important role in the strategic management process but the creation of a ‘sense of mission’ is even more beneficial to organisations