It Services

• What is H-D's strategy?

• Has the strategy been successful? Why?

• Compare H-D's resources and capabilities with those of Honda.

• What challenges does H-D face? How should its strategy be adjusted in response to these challenges? 

1)

- To sell Harley experience. (Unadulterated 100 year old American value exp)

- Cater to upper-income group in 40-50s years of age; baby boomers.

- Super Heavy-weight segment (>850 c.c.s)

- Relentless communication efforts and empathy to cust, dealers, investors, suppliers

- HOG.

- Chrome Consulting.

- HDFS.

- Expansion.

2)

Yes.

- Repeat buyers.

- HOG successful in building a community and began treated as a family reunion.

- Improved in-house efficiency. (JIT)

- DIfferentiated product, no direct competition.

3)

- Harley's technology was far lagging than that of Honda.

- Very few models over the years.

- Honda used cross-technology from cars into bikes but Harley did not have this privilege.

4)

- Baby Boomer who were the patrons have come off age and that section now does not account for more people as it was earlier.

- Challenges faced by declining sales and profits inturn from increase in sales since patrons not more connecting to the brand which had become more common now.

- Old Technology.

Dilemma:

- To increase the sales, should it venture into manufacturing more affordable bikes and targeting young people who had been left earlier.

Strategy:

- To concentrate on its specialization and serve the same traditional values and culture that it has stood for in the past.

- SGA (Sales, General and Administrative exp)

- R & D Spending should increase, thus reducing manufacturing cost.

- Raise more Finance.