Strategic Management Issues: Harley Davidson (HD)



Strategic Management Issues: Harley Davidson (HD)

Introduction

The intensity of rivalry among business players in the motorcycle industry is the focal point of this assignment. External and internal analyses are key factors to evaluate the issues of strategic management in any organization. The level of competition and extent of external analysis are influential characteristics of the motorcycle industry. The Harley Davidson or Harley or HD is one of the primitive automotive companies that produce heavyweight motorcycles, accessories, general merchandise, motorcycle parts and apparel. HD is a hub of providing financial services that includes insurance programs, retail financing, and wholesale financing. The brand preference, organizational learning, and economies of scale are three great notions for the Harley Davidson. The purpose of this writing is to conduct external and internal analysis with an extensive research attempt with relevant models, concepts, and theoretical frameworks (Figure III, Strategic Planning Process at Harley-Davidson).

Discussion

Overall Performance

The current market position of Harley Davidson depicts a pessimist analysis from industry experts. This is because HD seems to be driving on the maturity phase of its product life cycle, content with the market position, and deviating from efforts to attract young customers towards new designs of motorcycles. The past trends have shows declining figures for the dollar amount spending on research, development, and advertising portfolio of HD. One school of thought also believes that HD management is forfeiting company's future as they are not attracting new riders for accelerating their financial performance today (Figure I, Leadership Circles).

Internal Analysis: Strengths and Weaknesses

The core function of HD's business lies in designing, manufacturing, and selling heavyweight motorcycles in the market. North America, Asia/Pacific, Latin America, and Europe are key business markets for Harley Davidson. There have been pragmatic and drastic changes over the centurion history of this company (Quellin, 2011). It holds a legendary status and ecstatic image in the marketplace of America. Staying ahead in the industry and automotive marketplace is one of the key driving forces of Harley Davidson. The CEO of the company claims to assume ten blazing demons chasing them all the time. This attitude put a constant drive to stay ahead of the competitors, achieve and sustain the much-deserved success in the industry.

The maintenance of operations in the international strategic markets throughout the Europe, Brazil, and Japan has strengthened the support towards its global dealership and distribution network (Figure IV, Organizational Structure of Harley Davidson). Nonetheless, expansion in Asian or emerging markets and commencement of new models may establish a profitable future for the incorporation (Chan, 2010). The prevailing competition in the related industry and two wheelers' emission standards can put a deteriorating effect on the growth of the company. The further need is to identify the strengths and weaknesses of the business operations of HD to assess the internal portfolio.

Strengths

Harley-Davidson Inc. includes under the hub of strong brands in the world. The attraction, loyalty, and retention rate of customer base are positive results of this strong brand ...