Case Study on Harley Diversification

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1.0 Introduction
This report is to discover and solve the problem caused by the internal and external of the company. Harley-Davidson is a famous motorcycle manufacturer. But within high competition, Harley finds that it is lack of technology advantage, inapposite strategy for development, and gets more competition by analysing its capabilities and resources and its competitive environment. To solve these problems, Harley has to take three steps which is mention in recommendation.

2.0 Company Profile
Harley-Davidson is a major US maker of motorcycles and the nation's #1 seller of heavyweight motorcycles. The company offers 35 models of touring and custom Harleys through a worldwide network of more than 1,500 dealers. Harley models include the Electra Glide, the Sportster, and the Fat Boy. (From BaiduBake)

3.0 Harley-Davidson Performance
Harley-Davidson was founded in 1903. During 1903 to 1981, Harley-Davidson was stepping into maturity. It gained great market share in US. But Honda had replaced Harley as market leader in heavyweight motorcycles in the US, by the end of 1970s. In 1981 Harley-Davidson took new production methods and developed new spirit of cooperation between workers and management. Harley-Davidson got back to US market. (See table 8.2)

This table shows that Harley-Davidson current performance is good in domestic market. It almost gets 50% market share in US. But it also reveals its weakness on international expansion, especially in Europe. Harley-Davidson has only about 7% market share in Europe. This means most of the European market share is hold by its competitors such as Honda or BMW. 4.0 Harley-Davidson Strategy

4.1 Porter’s Generic Strategies

Cost leadership: This strategy emphasizes efficiency. By producing high volumes of standardized products, the firm hopes to take advantage of economies of scale and experience curve effects. The product is often a basic no-frills product that is produced at a relatively low cost and...
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