New Balance Case Study: Capabilities and Resources
Appendix 3 – Internal Analysis
Resources:
a) Tangible resources:
i) Physical: plants and equipment * H-D invests continuously in plants and equipment. * H-D plants are located in different states in the US, very far from each other, which causes very high transportation costs.
i) Technological: * H-D is known for its technological backwardness in terms of engines, suspension systems, braking systems, and transmissions.
iii) Financial * Steady increase in profit for 20 years (until 2007) * Downturn in the last year (2008) * Limited ability to invest in technology and new products due to smaller corporate sizes and inability to share research expenditure across cars and bikes
iv) Organisational * Flatter and more team-based organisational structure, which provides better flexibility and effectiveness
b) Intangible resources: ii) Human: * High level of employees’ loyalty and commitment to the company * Good management-employee relationship, characterised by open communication, employee support (e.g. education program)
iii) Innovation: * lack of significant innovation activities
iv) Reputation: * Extremely strong brand name * Very high customers loyalty * Strong relationship with the customers through HOG * Close relationship with the suppliers through SAC
v) Distribution network: * Very well developed distribution network * Close relationship with the dealers – dealer development program
vi) Strategic alliances: * Alliances with Porsche AG, Ford, and Gemini Racing Technologies – provide access to automotive technology * Recently has formed an alliance with Shell
Capabilities
* Vision * Offering a unique/personalised
Resources:
a) Tangible resources:
i) Physical: plants and equipment * H-D invests continuously in plants and equipment. * H-D plants are located in different states in the US, very far from each other, which causes very high transportation costs.
i) Technological: * H-D is known for its technological backwardness in terms of engines, suspension systems, braking systems, and transmissions.
iii) Financial * Steady increase in profit for 20 years (until 2007) * Downturn in the last year (2008) * Limited ability to invest in technology and new products due to smaller corporate sizes and inability to share research expenditure across cars and bikes
iv) Organisational * Flatter and more team-based organisational structure, which provides better flexibility and effectiveness
b) Intangible resources: ii) Human: * High level of employees’ loyalty and commitment to the company * Good management-employee relationship, characterised by open communication, employee support (e.g. education program)
iii) Innovation: * lack of significant innovation activities
iv) Reputation: * Extremely strong brand name * Very high customers loyalty * Strong relationship with the customers through HOG * Close relationship with the suppliers through SAC
v) Distribution network: * Very well developed distribution network * Close relationship with the dealers – dealer development program
vi) Strategic alliances: * Alliances with Porsche AG, Ford, and Gemini Racing Technologies – provide access to automotive technology * Recently has formed an alliance with Shell
Capabilities
* Vision * Offering a unique/personalised
Links: Adapted from Hubbard, Rice and Beamish (2008, Table 4.4, p. 128) Capability | Valuable for customers? | Rare? | Difficult to imitate/substitute/replicate? | NonSubstitutability? | Is it a core competency? |