Submitted by: Submitted by srakireddy
Views: 190
Words: 261
Pages: 2
Category: People
Date Submitted: 08/11/2012 01:15 AM
• 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.